Change Your Perspective on Personal Finance

ONE WORD THAT
WILL CHANGE YOUR
PERSPECTIVE ON
PERSONAL FINANCE
– AND YOUR RESULTS!
Savvy Chicks
Rule
www.savvychicksrule.com

VALUE
Savvy Chicks
Rule

Introduction
Value is the importance, worth, or usefulness of something.
For personal finance purposes, value means spending, saving, and
investing your money efficiently on investments that matter most.
Getting the best value for your money requires assessing the
usefulness of the item or investment compared to the cost.
Whenever saving, spending, or investing money, take value into
consideration. You’ll be happier with the results you require.
The value you provide to the world even determines how much
money you receive.
Savvy Chicks
Rule

“Financial literacy is an issue that should command
our attention because many Americans are not
adequately organizing finances for their education,
healthcare and retirement.”
- Ron Lewis
Savvy Chicks
Rule

Planning Your Finances
The idea of value strongly applies to the planning of your financial
future.
Effective goals based on your values will virtually ensure success
in what is financially most important to you. Without goals, it
becomes necessary to rely upon luck.
Ask yourself these questions:
Savvy Chicks
Rule

• What do you want to do when you retire? Would you
like to travel the world?
• Currently, how would you choose to spend your leisure
time if you had sufficient funding?
Which leisure
activities do I value
the most?
• By deciding what you value the most, you can release
yourself from the items you value the least.
• Avoid wasting money and time on items that aren’t
valuable to you.
Which possessions
do I value the most?
• Do your current financial goals take into consideration
the people you value the most?
• Consider living, educational, retirement and medical
expenses.
Which people do I
value the most?
• Is your money going to the organizations you value the
most?
• Would it be worthwhile to reconsider how you’re
allocating those donations?
Which charitable
organizations do I
value the most?
Planning Your Finances Savvy Chicks
Rule

“I have this system where if I buy three or four new
things, I give away three or four things. Sometimes,
it's a very painful system, but shopping is even better
when you know that someone else who needs it will
be getting. Keep the clothing karma going, I say.”
- Sara Blakely
Savvy Chicks
Rule

 Value is an especially important concept with regard to
earning money. Whether you’re earning your income from a
conventional job or running your own business, it’s all about
the value you provide.
 Create value for those around you and watch your earnings
grow.
 Take a moment to consider what your boss, company, or
customers ultimately desire from you.
Earning Money Savvy Chicks
Rule

• In the end, your boss is only concerned with how good
you make him look.
• That includes how you conduct yourself and how
successful you are at helping him meet the goals
provided to him by his boss.
Your boss wants to
look good.
• A company wants to be profitable and that requires
that you do your job efficiently without causing
problems.
• Even the most effective employees are unappreciated
if they create human resource issues or negatively
affect morale.
Your company
wants to be
profitable.
• Your customers require reliability.
• Your products and services must be of an appropriate
level of quality.
• Your products and services must provide value to your
customers.
Your customers
value reliability and
the cost-to-value
ratio you provide to
them.
Earning Money Savvy Chicks
Rule

“Good health is not something we can buy. However,
it can be an extremely valuable savings account.”
- Anne Wilson Schaef
Savvy Chicks
Rule

 If you’re going to save money anyway, you might as well do
it as well as you can! Many people save money without any
thought as to how or where to save it, which is a guarantee
they’re not getting the best value for their efforts.
 Have you considered why you’re saving money?
 Are you saving it optimally?
Saving Money Savvy Chicks
Rule

Are you saving for the short or long-term?
The timeframe of your savings goals will have an impact on how you value the
various options for saving money.
What are your savings goals and why?
What are your goals for your savings
and how will you ultimately spend the
money?
Are you saving to provide your
children with an inheritance or saving
to buy a sports car?
Are you saving money in a way that provides the greatest value?
A checking account, savings account,
and brokerage account are all
convenient savings places.
However, they’re unlikely to provide
the same return or have the same
expenses.
Saving Money Savvy Chicks
Rule

“Economics is all about consumption. People either
spend money now or they use financial instruments -
like bonds, stocks and savings accounts - so they can
spend more later.”
- Adam Davidson
Savvy Chicks
Rule

 Even the creation of your budget is enhanced by considering
value. Every budget assigns value to one category at the
expense of another.
 Is having the air-conditioning set at 70 degrees more
important to you than buying steak for dinner? Would you
rather have a nice car or take nice vacations? It’s up to you.
 When creating a budget, consider how the concept of value
is applicable.
Budgeting Savvy Chicks
Rule

A budget is really a
determination and
execution of
what’s most
valuable to you.
It’s a simple
and effective
way to
allocate your
resources.
Priority is
given to the
most
important
expenses.
A budget provides
a means to save for
things you value
highly.
A budget
enhances the
ability to save
for the future.
Educational
or medical
expenses, a
vacation, a
new car,
retirement.
A budget imposes
constraints, which
further enhances
the need to assess
value.
If you have a
limited
amount of
money to
spend each
month,
determine the
best way to
spend it.
Your spending is
more value-based.
If you only
have $300 to
spend on
groceries,
you’ll
automatically
find a way to
stretch it.
Budgeting Savvy Chicks
Rule

“My parents started with very little and were the only
ones in their families to graduate from college. As
parents, they focused on education, but did not stop
at academics - they made sure that we knew music,
saw art and theatre and traveled - even though it
meant budgeting like crazy.”
- Jennifer Garner
Savvy Chicks
Rule

 There are few instances where value is more important than
investing. Receiving the most value for your investing efforts
pays back handsomely. Obtaining a stock, bond, or piece of
real estate at a great price is an effective way to invest.
 Assigning value to your future financial needs and your
timeframe can also influence your investing activities.
 The concept of value applies to investing in several ways.
Investing Money Savvy Chicks
Rule

Value stock investing:
In essence, you’re
looking for stocks
that trade at a price
below their
intrinsic value.
These are stocks
you believe the
market has
undervalued.
Mutual funds:
Few mutual funds
will provide a
greater return than
an index fund.
Most index funds
provide greater
value and less
expense than
traditional funds.
Real estate:
It’s possible to
identify and
purchase properties
at 50 cents on the
dollar.
Future value of
expected cash flow
from rents creates
value.
How can you get the
most value when
you sell the
property?
Rule

Bonds:
Assigning a value to
bonds is also
important if you’re
going to use them
as an investment
option.
The risk, interest
received, and many
other factors affect
the value of bonds.
Savings accounts, money
market accounts, and
certificates of deposit:
Are you able to
value these
investments
accurately?
Your time:
Consider how much
of your time each
investment will
require.
What is the value of
your time and
energy? Are you
including this in
your evaluations?
Rule

“There are so many different kinds of motivation for
investing or giving or parting with your money in
whatever other way, and plain old financial return is
obviously attractive. But people are not always
rational and are not just looking for that.”
- Jessica Jackley
Savvy Chicks
Rule

 Getting the most for your money makes good sense. Consider
value in these major purchases:
Automobiles
• Consider price, fuel
efficiency, new vs.
used, expected
lifespan, cost to
maintain, condition
• Does the automobile
suit your needs?
Housing
• Does it make more
sense to buy or rent?
• How much does the
home cost? How much
do you expect to sell it
for in the future?
• Expensive to maintain?
Groceries. Value
shopping is especially
important.
• Are there foods you
genuinely like that
would save you money
each month?
• Putting a reasonable
limit on your food
expense is the best way
to get value.
Spending Money Savvy Chicks
Rule

• You either paid too much or
overestimated the enjoyment or utility
you would receive.
Do you often feel let
down by the purchases
you make?
• You’re probably failing to limit your
purchases to those items you need or
adore.
Is your home over-
cluttered?
• You either purchased too much or didn’t
enjoy it as much as you thought you
would.
Do you regularly
discard food?
• It’s unlikely you’re going to get the most
for your money without intending to.
Do you fail to think
about your purchases
beforehand?
Spending Money:
Identifying Poor Purchases
Savvy Chicks
Rule

“Innovation has nothing to do with how many R & D
dollars you have. When Apple came up with the Mac,
IBM was spending at least 100 times more on R & D.
It's not about money. It's about the people you have,
how you're led, and how much you get it.”
- Steve Jobs
Savvy Chicks
Rule

 Value can have many different meanings. However, the idea of
maximizing value is particularly relevant to personal finances.
 Considering value when making all of your personal finance
decisions will have a positive effect on your finances.
 Applying the idea of value can enhance your income and remove
much of the clutter from your life.
 By applying the same concepts to other areas of your life, you’ll
enjoy more meaningful relationships and greater levels of
satisfaction.
Conclusion Savvy Chicks
Rule

Savvy Chicks
Rule
 Are your financial goals set?
 Are your financial plans in place?
 Are you committed to seeing them through to the end?
If you desire to prosper financially, I invite you to download the
accompanied guidebook and worksheet to this “Prosperity Power
Lesson.” You will be well on your way to achieving the financial
success you deserve!
Copy and paste link  www.savvychicksrule.com/one-word-value
The better you execute, the better you perform. It's that simple.
Copy and paste link  www.savvychicksrule.com/one-word-value
Execution is Everything

Change Your Perspective on Personal Finance

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