Winning the Budget Battle

People talk about money, think about money and complain about a lack of money. Few people know how to manage their money; often their money manages them. A budget gives you control over your present situation and hope for the future.

A budget allows you to:

• Live within your means.

• Realize your personal goals.
• Maintain/ re-establish good credit.
• Get more for your money.
• Reduce stress.
• Achieve confidence and competence.

Manage your money: Don't let your money manage you!

Using the chart in this brochure, compare your monthly income and expenses. If you are spending more money than you have, you will need to increase your income or decrease your expenses.

It is sometimes difficult to increase income, but everyone can cut spending. Take your lunch to work, eliminate the "extras" like call waiting or cable television, take advantage of low cost or free recreation activities in your community, cut coupons, determine what you need versus what you want when making purchasing decisions.

Involve your whole family in the budgeting process, especially children. Set goals together, have monthly "money meetings," and make decisions as a family. Cooperation is necessary for a budget to be successful.

Don't be afraid to get help if you need it. Look for these signs of financial trouble:

• More and more of your income goes to pay debts.
• You are dipping into your savings to pay bills.
• You are using credit for everyday expenses like food.
• Creditors are calling you about late bills.
• You and your spouse fight about money.
• Your credit cards are at or over their limits, and you are only making minimum payments.

Momentive™ Consumer Credit Counseling Service® has a debt management program for repaying debts and also offers free budget counseling to individuals and families. Call (888) 711-7227 for an appointment.

A B-U-D-G-E-T is a P-L-A-N

Begin by setting realistic goals. When you know what you are working for, you will feel motivated to stick to your budget.

Utilize bookkeeping strategies that work for you. Don't be afraid to experiment. Find the easiest, most efficient method for you.

Do your budget in pencil. Don't be afraid to change things when you need to! A budget should not be too restrictive.

Get started now. Procrastination may be your biggest obstacle. Instead of starting tomorrow, next week or next month, start today!

Evaluate your progress frequently. Catch yourself before you overspend. Be sure to reward yourself for good spending/saving behavior.

Track your spending. When you spend money, write it down (even when its pocket change.) This will help you determine your flexible expenses and plug "leaks" in your budget.

Plan for periodic expenses. Put aside money every month for bills you pay only once or twice a year, such as insurance or license plates.

Late charges. Pay on time and avoid them. Put your money on a schedule.

Allow for pleasures in your spending plan. Don't forget to budget for fun too!

Never give up! A setback can be a learning experience for you. Go forward from there.

This is a sample budget form. Modify it to meet your needs.

10 Secrets to Saving Money

No matter how much or how little money you have, it is important to get in the habit of saving money. Start small, but start now.

These suggestions will help you.

1. Pay yourself first. Make savings a fixed expense in your budget every month. Write a check to yourself.

2. Write it down. Write down everything you spend, when you spend it. You'll be more likely to think twice about impulse purchases.

3. Keep the change. Put your pocket change in a jar every day. Pennies will turn into dollars.

4. Unexpected money. Treat any additional money from overtime gifts or paid off loans as money to be saved before it disappears.

5. Shop before you buy. Take the time to compare prices before you make your decision to buy. By doing some research and visiting more than one store, you can get the best buy. Put the extra money you might have spent into savings.

6. Don't buy every day necessities on credit. Budget cash for grocery shopping and going out to eat. Spending cash limits the amount you will spend and that will save you money.

7. Several savings accounts. Use a separate account for each purpose. You will be less tempted to take emergency money out for vacation.

8. Automatic payroll deduction. It is much easier to save money you never see!

9. Thrift plans. Employers will often match what you put in up to a certain percentage. Take advantage of any saving plan your employer offers.

10. Frugal week. One week every month, spend only what is necessary. Leave all credit cards at home. Deposit what is left into savings.

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