Apprisen Financial Advocates/Consumer Credit Counseling Service

Getting started with a Budget

• Keep track of spending for two to four weeks to see where the money is going before planning a budget.
• Plan spending in advance.
• Use round-dollar figures to make budgeting easier.
• Only use spending averages and guidelines in a very general way; what is spent will depend greatly on each client's personal goals and priorities.

Maintaining a budget

• Expect change and be flexible. It takes time to stabilize the budget and requires patience.
• Make budgeting a family affair. Work on it with a partner and involve the children.
• Plan to pay bills either when they are received or at set times during the month, such as on the 1st and 15th.
• Plan to pay more than the minimum required on each bill to minimize finance charges and accelerate repayment.
• Provide a weekly or biweekly allowance to each member of the household, if possible.
• As a debt is paid in full, designate the monthly payment to savings, or increase payments to other creditors to become debt-free sooner.

Developing effective financial behaviors

• Work on correcting only one to three financial behaviors at a time. Ex: Impulse / Compulsive spending behaviors
• Restrict credit use for major purchases and genuine emergencies.
• Be flexible. It takes time and patience to stabilize a family budget.

Goal Setting -

• Determining short term / long term financial goals
• The goals should be SMART: Specific, Measurable, Attainable, Realistic and associated with Target dates for completion.

Decision-Making and Implementation -

• With goals and plans in mind, the budgeting process continues with making and carrying out decisions about resources.
• Cost/benefit analysis helps clients decide how best to use their resources. Clients should think about the balance between the cost and the short- and long-term benefits of their financial decisions. Common problems include sacrificing long-term goals for short-term benefits and paying too much for short-term benefits. Short-term goals are important milestones in progressing toward long-term goals. However, clients need to determine whether the short-term costs they build into their plans will actually contribute to achieving their long-term goals.

Controlling and Evaluating -

• All family members should be involved in preparing, implementing, and participating in the plan. This improves communication about family finances and helps family members
• NFCC Counselor Certification 2005V1 9 Book 2 - Budgeting understand their roles in reaching the planned goals. With every family member actively involved, the process has a better chance of success. The process may be more effective when one person manages the family finances. However, this decision ultimately should be determined by the family.
• Clients will need to evaluate their perspective of needs versus wants / fixed expenses and flexible expenses, which they can adjust.
• In addition, clients should prioritize which debts they would like to pay off first, when additional income is received. Ex: Income received from IRS tax return.
  
  

Tips from Webb Financial Group, LLC.

• Start a Christmas Savings Account for next year
• If you have credit card debt, do the debt snowball. Put all of your extra money on your smallest balance first and pay the minimums on the rest. Ithelps your attitude as you can see progress sooner.
• Set agoal to be debt free from consumer debt. Set a date like March 15, 2012. Make a plan to be debt free.
• Review ways to trim expenses in your budget. For example, no soda pop or cigarettes for one month, no cable for one year, etc.
• Get a second job for a short time, start a side business such as mowing lawns, woodworking, painting, something you are good at.
• Don't spend any more than $1 per month on the lottery if you are not saving for retirement.
• Start an IRA in mutual funds.
• Increase your 401k deductions by 1%.