| Many Americans wonder how they can be employed | | | | a goal for general savings. |
| and yet still be poor or financially struggling. This class | | | | Goal Savings - A goal savings is where an item or |
| of people has historically been considered the working | | | | destination is put on it and the saving goes directly |
| poor and has grown exponentially during the nations | | | | towards that goal, like a vacation to the Bahamas, or |
| latest financial and economic conditions. | | | | new flat screen television. Whatever the goal is, set |
| Recently, when interviewed B. Harper, a small | | | | a time limit and a monthly amount that will be |
| business owner in Renton, WA was adversely | | | | contributed towards the goal. Add this goal to the |
| affected by the economic downturns. This local | | | | budget sheet. |
| boutique shop owner stated she was greatly | | | | New Budget - Now that an evaluation of the monthly |
| affected by the crash of the economy. Her business | | | | expenses has been done, a spending tracker |
| no longer has a physical store location and she is | | | | completed to trim the "fat", savings plans and a goal |
| being forced to sell what she has at wholesale cost in | | | | savings instituted, write out the new improved |
| order to regain some of her bottom line. The sales | | | | budget and keep it handy for reference until following |
| are conducted now strictly through word of mouth. | | | | it becomes a habit.[1] |
| Although, she is temporarily shutdown she didn't | | | | Goal Setting |
| appear to think all hope was lost. Her thoughts | | | | Setting goals is essential to knowing exactly what will |
| seemed to plan futuristically of how she might | | | | be planned financially now and in the future. The |
| change the way she runs her business the next time | | | | goals should be realistic but also things that are |
| and to be more prepared for such a crisis. | | | | wanted and can be achieved. For instance, buying a |
| Strategies for Success with Personal Finance | | | | house will require several smaller goals to write |
| There are strategies for financial security every | | | | before just achieving that goal. So a certain amount |
| household can utilize and are achievable if they are | | | | of money should be put aside for down payment, |
| willing to make the changes needed to attain financial | | | | credit repair if needed, pay down debt, ect... Here are |
| and life goals. Whether affected adversely or only | | | | some basics steps in getting started: |
| slightly, the nation's economic setbacks have sent | | | | Step 1: Identify and write down financial goals, |
| society on a search to improve personal finances. | | | | whether they are saving to send kids to college, |
| Here are some strategies that can assist in assessing | | | | buying a new car, saving for a down payment on a |
| your personal finances: | | | | house, going on vacation, paying off credit card debt, |
| Evaluation of budget - Look realistically at what the | | | | or planning for retirement. |
| household income is and what is spent on bills and | | | | Step 2: Break each financial goal down into several |
| debt. Some spending habits are harder to detect than | | | | short-term (less than 1 year), medium-term (1 to 3 |
| others. Some common expenses are rent or | | | | years) and long-term (5 years or more) goals; which |
| mortgage, utility bills, phone bills, childcare, internet, | | | | will make the process easier. |
| cable, gym memberships, car payment, car insurance, | | | | Step 3: Obtain some knowledge and do research. |
| food, Etc. | | | | Read a money magazine or a book about investing, |
| Spending Tracker- The spending tracker is done by | | | | or surf the Internet's investment web sites. |
| keeping a log of the items purchased and for how | | | | Step 4: Evaluate the progress you are making as |
| much each day. This should be done for at least a | | | | often as needed. Review progress monthly, |
| month in order to appropriately and accurately assess | | | | quarterly, or at any other interval that is convenient, |
| when money is being spent in the household. This | | | | but at least semi-annually, to determine if the |
| should be done for all financial participants in the | | | | program is working. |
| household. | | | | Sometimes it may be hard to get started in actually |
| Evaluate the spending - Once the tracker has been | | | | moving towards financial goals and so here are a few |
| completed an evaluation of what was spent needs to | | | | methods to assist in this process: |
| be conducted. Calculate important items and non | | | | Begin by taking 5%-10% out of each pay check and |
| important items and decide where the fat can be | | | | put it in a savings account |
| trimmed. | | | | Look into different investment strategies such as |
| Savings Plan- A savings plan should be instituted even | | | | IRA's, stocks, mutual Funds, personal investments |
| if it's only one dollar a paycheck. As the income | | | | etc. There are many more and all can assist in short |
| grows or the extra coffee or soda is dropped then | | | | and long term goals. Use coupons. Shop around for |
| this should be increased accordingly. Savings should | | | | bargains or sales. |
| eventually be aimed at having three or more months | | | | Sources |
| of complete household expenses. Calculate the basic | | | | [1]Budgeting. Dave Ramsey Online. |
| necessities and times it by three and use the total as | | | | |