How to Manage Your Money Budget Planning, Money Management, Debt Management and Credit Counseling Services

You know that you need to get your finances in order, but giving yourself a financial makeover may seem overwhelming. Spending habits, income, educational expenses and planning for retirement must be handled so that you can take control over your finances.

ACCI would like to make suggestions o­n how to correct your financial situation through budget planning, money management, debt management and credit counseling services.

• Set Financial Goals – Set short, mid-range, and long-term goals.
• Develop a realistic and manageable budget – There are three essentials for setting up your budget: income, routine monthly expenses, and debt totals including monthly payments. Always account for of all your debt.
• Plan – Plan for the future, including recurring monthly expenses, major purchases and unexpected expenses.
• Don’t spend more than your income – Avoid paying minimum payments o­n your charge cards. Don’t charge more every month than you can repay to your creditors.
• Pay your bills o­n time – By doing this, you will sustain a good credit rating and will avoid late fees. If you cannot pay your bills as agreed, contact your creditors to explain your situation. You may want to contact a debt management program (DMP) for free advice.
• Evaluate your financial situation – Calculate your monthly living expenses, periodic expenses and monthly debt payments. Compare your expenses to monthly income.
• Know the difference between wants and needs – Always make needs a priority. Money should be spent for wants o­nly after needs have been met.
• Always save – Save for unexpected expenses, such as car and home maintenance. Make it a habit to save 5 to 10% of your net income. Have a buildup of three to six months’ salary for an emergency fund.
• Keep a diary of daily expenditures – Be conscious of where you are spending your money. Use a spending diary to help you recognize areas where cuts need to be made.
• Use credit sensibly – Use credit for safety, convenience, and planned purchases. Set a total amount you can afford to purchase o­n credit with your income. Don’t permit your credit payments to go above 20% of your net income. Don’t borrow from o­ne creditor to pay another.