Money Possible Produces Debt Destroyers

Raquel, Fredica and Lisa and Bryan made it. Sixteen weeks of rigorous budgeting and saving and heavy financial lifting.

OK, maybe not that intense…but our three families did make a commitment, met with a financial counselor and made major changes in their financial life. And lived to tell about it.

Here’s what they learned:

“Say no to frivolous spending.”
“Live within your means.”
“Don’t overwhelm yourself with credit.”

Each participant started out with a different financial issue. Lisa and Bryan wanted to bulk up their retirement savings. Fredica needed to control her spending. Raquel’s payday loans were spiraling out of control.

But the outcome for the three was the same: a lighter debt load, and more importantly, less stress in their lives.

The takeaway is that financial stress can cause problems in your daily life…which is in line with this recent survey that says employee financial problems or stress can reduce worker productivity.

What did our participants accomplish in 16 weeks? Here’s the skinny:

Lisa and Bryan

• paid off four of their credit cards
• learned the difference between needs and wants
• involved their children and developed a family budget

Fredica

• stopped using credit cards
• is paying down her existing credit card debt
• learned to live within her means, and work with what money she does have

Raquel

• paid down 30 percent of her debt
• is current on all her bills and has stopped using payday loans
• started an emergency fund

If you only remember one thing from this post, remember this: Your household budgets and finances are up to you. It’s a life-long process, not just something you can do once and be done.

But don’t feel like you need to do it alone. Get help from the Consumer Credit Counseling Service or a credit union. Financial education is a primary focus of Kansas credit unions, and credit unions nationwide. Credit unions promote financial fitness, and their goal is to make your financial life easier. Get started on your own by downloading the Money Possible Workbook.

Thank you to Lisa and Bryan, Fredica and Raquel for sharing their stories for the world to hear. Using a public venue to air your dirty laundry can be intimidating. These three credit union members took it in stride to promote the importance of financial literacy, and learned a little something along the way.

Turn $100 Into $1000

Daily Finance has a nice little series about saving a Grand by cutting $100 per month. It’s called the $1000 Savings Challenge and you can see all the posts here.

Cutting $1000 is about as easy as losing those last five pounds. It’s going to take time, effort and sacrifice, something we Americans seem to lack. And there’s no one size fits all solution either.

According to the article,  “Go after your biggest categories to find the most spending, and concentrate on monthly bills so that you’ll be saving money each and every month. Go over every bill, methodically, one at a time, category by category. Cut out what you don’t use, don’t really need, and then look for less expensive alternatives to what’s less….all you have to do is start now, start small and don’t try to be perfect.”

We have been saying all along that to become financially fit you must DO SOMETHING. Start somewhere. Make a change. No one else is going to do it for you. It is up to YOU.

Here is the list of posts. Read them all, or just read the ones that will benefit you the most.

• Part 10: When the Refi Fails, Rethink Repairs
• Part 9: Nibbling Away at the Family Food Bills
• Part 8: Life Insurance You Can Live With
• Part 7: Spending Smarter on Entertainment
• Part 6: Find Big Savings in Small Purchases
• Part, 5: Cutting the Hidden Costs of Work
• Part 4: Cutting the Cost of Kids
• A $1,000 Challenge Bonus: How to Buy a Car and Save a Bundle
• Part 3: Shrinking Your Car-Related Costs
• Part 2: Turning Down Your Utility Bills
• Part 1: Cleaning Your Financial ‘Junk Drawer’

Tips include looking through your bills with a fine tooth comb for “fees” or other things you didn’t sign up for. Research your credit card bill for those recurring items, and if you don’t use the service (gym membership?) get rid of it.

To save at work, consider talking to your employer and see if you can re-arrange your schedule to save on child care costs. Buy things like diapers in bulk at wholesale warehouses, but don’t get distracted by those “shiny non-essential items” like barbecue grills.

To put a stop to unnecessary spending, trim your bank ATM fees by switching to a credit union (with a network of surcharge free or low fee ATMs nationwide) or simply reduce the number of times you use the ATM by taking out more than you need. Of course, that only works if you can limit your spending, and don’t suffer from “Have Cash, Must Spend” syndrome.

There’s some advice about flexible spending accounts, reducing entertainment spending, buying a car and a bunch of other stuff, too. Some of it may not be for you. Some of it may be right up your alley.

Still don’t know where to start? Get help at a credit union or non-profit agency like Consumer Credit Counseling Service. And there’s always the Money Possible Workbook, which doesn’t take any time, effort or sacrifice. Just click the link. If that’s not an easy way to start, we don’t know what is.

A “C” in Financial Literacy

School is so lame. Having to do what teacher says, all those dumb assignments, and who looks at your grades anyway?

April is Financial Literacy month, and a recent survey shows adults give themselves a “C” or lower when it comes to their financial knowledge. Not exactly making the honor roll, are we?

Here’s what the survey revealed:

• Forty-one percent of adults gave themselves a grade of C, D or F on their knowledge of personal finance.
• More than half of respondents (61 percent) admitted to not having a budget. This is the highest percentage in six years.
• About a third (34 percent) carry credit card debt month to month, and 15 percent roll over more than $2,500 in debt per month.
• Top concerns are not enough in emergency or retirement savings.

So basically, we are AT BEST a “C” student. We don’t have a budget. We carry credit card debt and we don’t have money for emergencies or retirement. And here’s the best (worst) part: Adults are spending MORE than in previous years, with only 29 percent saying they spent less than last year.

People: Get a hold of yourself!

First, watch this:

Financial education is what this campaign is all about. Our participants are learning that with proper budgeting, mindful spending and saving, and financial organization, you can beef up savings, pay down loans, stop impulse buying….and be on your way to financial health. The result of this knowledge? Living with less stress.

Here are a few more tips:

Spend less than you earn.
Period.

Make goals.
Goals can create actions plans that help you stay on track.

Be realistic.
Start small. Eliminate one lunch out and save $10 a week. Trim $20 from your grocery bill. Then SAVE that $30 or apply it to one of your debts.

Consider your financial institution.
Kansas credit unions can save you $30,000 over your lifetime simply by using them as your primary financial institution. Most offer seminars or classes, some even have a person right on staff to help you. Credit unions are local establishments with a fierce loyalty to the their communities. Search here for a Kansas credit union, or visit asmarterchoice.org to find one nationally.

You can do it. We know you can. Make a commitment now to get control of your finances.
Download the Money Possible workbook. Call a financial counselor. Google it. Watch a video.

Strive for that “A” … that spot in the National Honor Society. Don’t you want your own “I’m an honor roll student” bumper sticker?

Budgeting: Not as hard as it looks!

Why is it that the right thing to do is always the hardest? Like not eating that double fudge chocolate brownie warm from the oven. Like breaking up with that person whose laugh drives you insane and you know it just won’t work out with. But when it comes to budgeting, you can’t use the old ‘it’s me, not you’ excuse.

So why don’t we do it? Is it because we don’t like to see the hard reality staring back at us? Or that it takes a little thought and planning? Whatever the reason, we promise you that making and sticking to a budget isn’t as hard as it looks. (Check out the ‘Basic Money Management’ section of our Money Possible Workbook)

Our participants are well on their way to destroying their debt. But guess what? They all started by making a budget. While some were budget newbies, others had tried before.

Lisa and Bryan said, “We did have a budget before. However, it was hard to stick to when unexpected things would show up.” We know, how can you plan for the unexpected? Having a little cushion in your budget will help keep you on track for the long haul.

Fredica and Raquel never had a structured budget.

Fredica, “just mapped out what was owed and the due date.” That’s a good start, but planning for the future requires long term budgeting and goals.

Raquel’s method was, “to pay with what you have and pay the most important things, rent, utilities, medicines, daycare, etc.  I think the hardest part is trying to find and figure out EVERYTHING that you owe, and what to start with first.” Getting everything down on paper (or the computer) makes your budget tangible. From there, you can begin determining what next steps to take to destroy your debt.

So here are three easy steps to get you started:

1. Identify how you’re spending your money now.
2. Evaluate your current spending and set long-term financial goals.
3. Track your spending monthly and adjust if necessary.

Join our participants and follow along – you, too, can be on your way to destroying your debt. As for your relationship woes, just do it already! It really isn’t you, we promise.

View the television segments.

Follow along on twitter: #moneypossible