This Free Report has been prepared to help you become better money managers. Money Tutor - Jo Ann Brown, recognizes that the average person needs help with preparing a budget. Find out first hand how to prepare a budget. Learn how to pay yourself first and how to include savings as a part of your budget. Learn the importance of an emergency fund and key places to open a savings account. This information and more is included in this Free Report.

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Copyright 2008 Jo Ann Brown
ALL RIGHTS RESERVED. You my sell or give away this report as long as it is not altered in any way, falsely
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DISCLAIMER AND/OR LEGAL NOTICES:
The information presented herein represents the view of the author as of the date of publication. Because of the
rate with which conditions change, the author reserves the right to alter and update his opinion based on the
new conditions. The report is for informational purposes only. While every attempt has been made to verify the
information provided in this report, neither the author nor his affiliates/partners assume any responsibility for
errors, inaccuracies or omissions. Any slights of people or organizations are unintentional. If advice concerning
legal or related matters is needed, the services of a fully qualified professional should be sought. This report is
not intended for use as a source of legal or accounting advice. You should be aware of any laws which govern
business transactions or other business practices in your country and state. Any reference to any person or
business whether living or dead is purely coincidental.
____________________________________________________________________
Introduction
Special Report Print This Out First

2. Money Management Rules
Do you have a savings account, yet find it difficult to find money to
deposit into it?
Then join the club of the thousands of people who share this same
problem.
Generally when you receive income it is either directly deposited into
your checking account or you go to the bank to make a deposit.
Typically these funds head straight to the checking account so they are
available to pay the seemingly endless stream of bills.
P -Planning - set short term and long term goals.
A- Allow money for an emergency fund.
Y- You give allowances and teach good spending habits.
Y- Your household budget should include saving.
O- Ownership versus loanership.
U- Understand financial jargon.
R- Review the plan frequently and change if needed.
S- Start a saving plan the day you are hired.
E- Evaluate your company's 401k plan.
L- Learn how to save using mutual funds.
F- Find an on-line banking account that you like.
F- Find the right investments.
I- Inform others - quot;Getting Started On Your 401k Planquot;.
R- Rebalance your investments annually.
S- Save for retirement.
T- Teach your children how to save.
What Does - quot;Pay Yourself Firstquot; - Mean?

3. A lot of people have the wrong interpretation of the simple phrase quot;Pay
yourself firstquot;.
I've asked several people, and these are some of the things I've been
told.
· After I pay my bills, and purchase the items I need, I then put
something in the bank.
· I set aside a dollar a day. I deposit it at the end of the month.
· I have set up automatic monthly deductions from my bank
account.
Most people save money as an afterthought. When they receive income
the money is allocated to bills, groceries, rent or a mortgage or daily
expenses among other things. The only time adding money to savings is
when there is money left over. Unfortunately with this backwards
thinking there is almost never any money left over to save.
The best plan is a sure plan.
When does Uncle Sam get paid? When does the State get paid? When
does Medicare and Health Insurance get paid? These deductions are
made before you receive your check. They don't wait and neither should
you.
Payroll deduction's is the easiest way to quot;Pay Yourself Firstquot;. Use your
company's payroll deduction plan, if available, and arrange for a fixed
amount to be taken out of your paycheck. Your employer will send
these funds to an account of your choice before you receive your check.
It doesn't matter if it is $10 or $500, simply having this happen
automatically will ensure money is saved every time you are paid.
When deposits are made into a savings account automatically and
regularly you don't have to think about it and the money is deposited
before you have time to worry about expenses or how much money will
be left over.
Automatic Saving is Easy

4. If you don't have direct deposit there is still an easy option available if
you do your banking at a local branch. Typically your bank can link
checking and saving accounts together and establish automated
transfers between accounts at a regular interval that you select.
So if you cash your paycheck every other Friday you could establish an
automatic transfer of a set amount of money from checking to savings to
coincide with this deposit
Proper planning would help you avoid making the common mistakes of
overextending your income. For starters, plan on spending only 1/2 of
your income on your needs. Your needs would include rent, car note,
insurance, food, etc. You should be spending only $750 for these items,
if you take home $1500 a month.
Pay a minimum of $300 per month to your parents for rent, gas, lights,
telephone, home cooked meals, and laundry facilities that include
washing powder and detergent. These are the same items you would
have to purchase if you lived in an apartment. You should offer this
payment because it is the decent thing to do and it sets the foundation
of not taking advantage of people.
You now have $450 to give yourself an allowance, pay a car note,
insurance, and save, which are also needs that you must provide.
Remember, you are not trying to tie up all of your income. So what, you
have $1200 left.
Using the $450 - give yourself a $50 weekly allowance ($200) and save
$50 per month. To purchase a car, you must have a down payment,
insurance, and you will have to pay state taxes and buy tags for the car.
Now you have $200 for a car note and insurance. You probably will not
be able to get a decent car at this time but you can consider public
transportation. Save $200 per month for these expenses (taxes, tags,
down payment, and insurance).
Managing your money and learning to live off of $750 you have now
accomplished the following.

5. 1. $50 monthly saving = $600
2. $200 monthly saving = $2400
3. $750 monthly saving = $9000
You have created 3 different saving accounts. You can now purchase a
car for cash and pay all of the expenses (taxes, insurance, and tags)
without putting yourself in debt or depleting your account. You will not
have a car note or insurance bill because you have paid for it with cash.
You've successfully accomplished your first short term objective -
purchasing a car. You will continue to have other short term objectives
and they can all be accomplished with using proper money management
skills.
WHEN IS A SAVING'S ACCOUNT A GOOD IDEA?
Saving is the first step in a financial plan and there are several ways
you can save money.
· Passbook Savings Account
· Statement Savings Account
· Money Market Account
· On line Account
· Money Market Mutual Fund
Everyone should have enough cash on hand to see them through a three
to six month hardship. A saving account can be a great place to build
and keep your emergency fund. What constitutes an emergency?
· Unemployment - commonly caused by dismissal/getting fired, job
relocation, outsourcing, and lay offs.
· Car repair if you only have one car.
Getting your only car running again is an emergency, replacing a
broken television is not.
Your initial savings account should be liquid, meaning you can get your
money out at any time. Your initial savings account should also be at a

6. low risk financial institution. The first rule of careful investing: Don't
lose money.
The interest earned on a savings account will vary considerably. Most
traditional banks pay very little interest on savings accounts.
You can earn a higher interest rate by using one of the high-yield
savings or money market accounts that are found online.
Deciding where to open your initial account is your decision.
BEST OVERALL ONLINE SAVINGS ACCOUNT
HSBC Direct www.hsbcdirect.com
Annual percentage yield: 5.05%
Why it's the best: Quick customer service, an ATM card, a $1 minimum
balance and typically one of the highest yields make this online savings
account the one to keep.
SIMPLEST TO USE
ING Direct www.ingdirect.com
Annual percentage yield: 4.50%
Why it's simplest: ING Direct's streamlined Web site and four-step
application are painless for even a Luddite. With no minimums and no
monthly fees, ING Direct set the standard that other online banks
follow (or should).
BEST FOR ACCESS TO FUNDS
E*Trade Financial www.etrade.com
Annual percentage yield: 5.05%
Why it's the best: The most inconvenient aspect of online savings is the
lag when you deposit money. It can average up to five days to clear a
transaction after the initial deposit. But E*Trade users can access
deposits on the same day.
BEST ONLINE CHECKING ACCOUNT
EverBank www.everbank.com

7. Annual percentage yield: Ranges from 3.25% for balances of less than
$10,000 to 4.41% for $100,000 or more.
Why it's the best: EverBank treats checking almost like savings. You
need a minimum of $1,500 to open an account and enjoy an introductory
rate of 6.01% for the first three months before it goes down to the
market rate.
BEST PLACE TO VET ONLINE BANKS
Bankrate.com www.bankrate.com
Why it's the best: Interest rates and features change daily. This is a fast
way to compare the full range of standard bank offerings as well.
Change The Way
You Think
About
Saving
Money
You may have money to save and not know it.
You could have already lost $1,000,000

8. Because of
Bad Spending Habits
Over paying your insurance premiums
Not renegotiating the interest on your credit cards
This report will show you where to look and how to save money that you
are currently throwing away.
Cost - $10.00
You will recoup this and more by using any of the
techniques taught in this report.
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