An informational seminar on balancing your family’s lifestyle on an Israeli budget. This presentation is an abridged version of a live seminar given at the NBN offices in December 2012. Baruch Labinsky, author of the highly successful new book 'A Financial Guide to Aliyah and Life in Israel', is the founder of Labinsky Financial, a financial planning firm located in Ramat Beit Shemesh. Licensed by the Israel Securities Authority as a portfolio manager, Baruch specializes in working with olim, and the successful transition of their finances to Israel.

1. Israeli Financial
Planning Seminar
Baruch Labinsky MBA, TEP
Licensed by the Israel Securities
Authority
Financial Planner/Investment Manager
December 2012
www.Labinsky.com

2. What is Financial
Planning?
Not an event but a process
 Paradigm shift
 Creating a personalized roadmap
 Align lifestyle to goals
 Financial success is implementing goals
 Your definition of success
 Wants vs needs
 Long term vs short term

3. Planning over time
 Short term plan
 1 year plan
 Emergency funds
 Housing
 Cashflow
 Employment vs ulpan
 Long Term plan
 Spend less than earn
 Retirement
 Weddings, simchas, special events etc
 Special needs, family obligations
 Education
 Debt payments

4. Budgeting!!
 Why critical in Israel?
 Awareness
 Solving financial problems
 Improves control over resources
 Prioritizing
 Improves family communication
 Goal tracking
 Long term and unexpected
 Most important tool you have!

6. Budgeting 101
 How do we get started
 Step 1: Create categories
 Step 2: Estimate your budget
 Step 3: Start recording
 Step 4: Re-set goals
 Step 5: Go back to Step 2 and
adjust your plan

7. Yearly Budget
Budget January February March April May June July August September October November December Total
Revenue
Husband's Rev 0
Wife's revenue 0
Betuach Leumi 0
Savings/Investment income 0
Revenue Subtotal 0 0 0 0 0 0 0 0 0 0 0 0 0 0
Mortgage 0
Arnona and water 0
Electricity 0
Gas - stove 0
Home
Telephone 0
Cell Telephone 0
Vaad Bait 0
Cleaning help 0
House Maintenance 0
Home Subtotal 0 0 0 0 0 0 0 0 0 0 0 0 0 0
Food 0
Schools 0
Living
Chugim/swimming 0
Mitapelet/Babysitter 0
Haircuts 0
Living Subtotal 0 0 0 0 0 0 0 0 0 0 0 0 0 0
Kupat cholim 0
Health ins/Meuhedet 0
Health
Medication 0
Life insurance 0
Health Subtotal 0 0 0 0 0 0 0 0 0 0 0 0 0 0
Car insurance/license 0
Transport
Gas Car 0
Shiurim 0
Car Maintenance 0
Trans Subtotal 0 0 0 0 0 0 0 0 0 0 0 0 0 0
Tzedaka 0
Dentist 0
Personal
Vacation 0
Books, computer disks etc 0
Presents 0
Clothing 0
Personal Subtotal 0 0 0 0 0 0 0 0 0 0 0 0 0 0
Machon Rakefet 0
Newspaper 0
Extras
Entertainment 0
Misc/shalom bayit 0
Extras Subtotal 0 0 0 0 0 0 0 0 0 0 0 0 0 0
Pay myself 0
Financial
Loans 0
CC 0
Keren Hishtalmut/Pension 0
Financial Subtotal 0 0 0 0 0 0 0 0 0 0 0 0 0 0
Total Expenses 0 0 0 0 0 0 0 0 0 0 0 0 0 0
Balance Monthly 0 0 0 0 0 0 0 0 0 0 0 0 0 0
Yearly to Date profit or loss 0 0 0 0 0 0 0 0 0 0 0 0

9. How to make it work
 Discipline to track
 Mutual responsibility
 If you can‟t afford it …
 Use tools that work for you
 Give yourself a buffer
 Don‟t forget about the revenue!

10. General tips
 Live within your budget
 Research prices - internet, friends
 Negotiate everything!
 Buy used - janglo, groopbuy.co.il, ebay
 Check your bills
 Plan ahead
 Cash is king

11. The Israeli System
 Understand Israeli system
 No universal reporting requirement
 Teum mas
 Tax credits, women vs men
 Donations
 10 year tax “holiday” for Olim
 Bituach Leumi
 When start paying… or collecting
 Income supplements
 Maternity leave
 Handicaps
 Special exceptions committee
 Pensions

12. EMPLOYMENT BENEFITS
o Understand the Israeli employment
benefits!
o Types of standard benefits – significant savings
o Long term retirement savings plans
o Bituach Menahalim
o Keren Pensia
o Keren Hishtalmut
o Self employed business structuring options

13. The Big Ticket Items
 Cutting your food budget,
 Transportation expenses
 Can I afford a car or two?
 Real cost of owning
 Mortgage – brokers?
 Insurance
 Banking and financial services
 Online
 Shop around

14. Utilities etc
 Electrical
 Discounted rates – 9 categories
 Water – discounts?
 Arnona – municipal taxes
 Home Gas
 Cell and regular phones

15. Be creative
 Gemachim
 Schools – discounts, negotiate, used
books
 Chugim/classes – hosting, swapping,
coop
 Clothing
 Entertainment – free …
 Household

16. QUICK TIPS
 Find a „guardian angel‟
 Educate yourself
 Investigate Oleh discounts
 Research before committing
 Accounts and policy information

17. Annual Statement of Net Worth
 Monitoring your financial progress
 Is the issue temporary or system
 Easier to create reward system for an
enjoyable process

18. Importance of Tracking

19. Importance of Tracking

20. Importance of Tracking

21. Available in stores in Israel and abroad

22. More information and mailing list
signup
www.labinsky.com