Don't Wait, Come in Now

One of the things we financial counselors regret is seeing people wait too long before they come in for help or advice. Often as we look over the paperwork that is brought in to us we think, if only they had come in a year ago, when they first realized they were struggling. It would be so much simpler to resolve.

Often clients will express to me: I thought I could do it on my own, but I can't. There is no shame in seeking counsel! It's the smart thing to do. Seeking advice from a budget, credit or financial counselor does not mean that you are less than others. It doesn't mean that you have failed. And it doesn't take away your freedom to make your own choices.

As financial counselors we see many people in many situations so we get experience that the average person cannot gain. And we know of resources that you may not know about.

Many financial counselors have gone through their own struggles and can truly empathize with you.

So if you are beginning to feel uneasy about your finances, if it is getting harder to make ends meet, if you have started using credit cards to pay normal living expenses, do not wait--call today and make an appointment with a credit counselor. You may save yourself a lot of trouble. It's the smart thing to do.

Is your desk buried in papers?

A couple of years ago I got it all figured out and had a perfect system to handle all my papers. Wow, the dining room table was clear every day! But look at my desk at home today (and my dining room table) you'd never know I have a system. So believe me when I say I understand what it's like to struggle to stay on top of all those papers that come in every day.

But there is one thing that I have done and keep up with all the time--having one place to put bills when they come in. If you need a place to start, this is it. Designate one place to be a container for the bills. I like Julie Morgenstern's advice in her book, "Organizing from the Inside Out," to choose a container that you really like. I use a basket and keep it on my desk. Other people use a file folder in a drawer labeled, "Bills to Pay." You could also use an accordian file with 13 folders one for each month, and one for the bills.

The container itself is not important, what is important is having one and always putting your bills in there. While you are at it, find a container for your receipts. Again you can pick one that you really like. I use a wicker index card file box with a lid which I keep on a shelf. Whenever you have a receipt for an item that may need to be returned, put it in that container. Keep it simple. Usually you won't need any receipts, but when you do need to find one it will be in there, with the most recent ones first, and will only take a minute to find.

Along with this choose two days a month when you will pay bills. This is much simpler than writing checks each time a bill arrives. Mark these days on you calendar. Keep a list with your bills as to which get paid on the first date of the month and which on the second. Then there is no forgetting. I have found the billpay service that is free at my bank to be a tremendous time saver, as well as saving the cost of postage and checks.

These simple changes can make a huge difference in your finances and your peace of mind. If you need help, at FISC we have counselors who can help you to work out a system for yourself and help you figure out how to pay all those bills. Just return to our homepage for more information.

So you blew the budget, now what?

Christmas is over, just like that, and some of us spent more than we should have. And maybe we (gasp) put it on a credit card. Can't pay it all off in one month? Now, what should you do?

Most importantly don't give up and throw out your budget plan. Just as with diets, it may be tempting to say, budgets don't work for me, see I proved it. There's just not enough to go around.

Instead of giving up on gaining control of your money, take a step back now and develop a plan to deal with the holiday debt.

To be honest, my credit card bill in January is going to be bigger than expected. I have a credit card that I use for gasoline and other purchases, which I pay off in full every month. (I use this card because I earn books with it). But I am anticipating this bill is going to be too big. For one thing I had two major car repairs, one the head gaskets had to be replaced, and the second was for a car accident and we had to pay the $500 deductible. So we had a total of $1150 in car repairs! And yes, I may have exceeded my Christmas budget a wee bit..., well, ok, quite a bit. I did resist that ipod and game system I mentioned in a previous post, but...there were other things. Have I failed? No, and neither have you. We have a problem to solve, a challenge to face. If you, like me, have been improving your money management over the years, you will also be able to work out a solution and get back on track in no time. And if you are just starting out, this experience will be a great teacher.

So, what to do. The first thing is to stop using the credit card until the balance is paid in full. Take it out of your wallet or purse, freeze it in a block of ice if necessary, but stop using it. Then, develop a plan for paying off your debt. See if you can pay it off in 3 months or less. If you paid it in three months calculate what those payments would be. Look over your spending plan and see how you can come up with those payments. Cancel netflix for 3 months, limit eating out and other entertainment, don't buy any new clothes, etc. Look for expenses that you can cut, just for the next three months.

Can you earn some extra money? Do you have any items you can sell? Can you donate plasma for these three months? (That will earn you about $200/month) Can you take on any side jobs, do some babysitting?

Take on the challenge and be creative. And if you need help finding solutions, come in and see one of our financial counselors. We can help you develop a spending plan that fits your life, and also help you start what we call a "Put N Take" savings. This is like your own personal Christmas club account, but it includes money for all those unexpected expected expenses, such as car repairs, eye glasses, and gifts.

We welcome your comments. How are you handling any post-Christmas debt? How did you do this year? Have you improved, if so how?

Christmas Spending

What better time to start a blog on using fiscal sense than during the Holiday Season? Believe me, all of us are tempted to spend or do more than we should. I am going to be inviting all our FISC (Financial Information and Service Center) financial counselors, and perhaps others to chime in here to discuss their favorite ideas for making it through the holidays without overspending.

Even among us financial counselors we have a wide variety of styles and personalities, some of us are spenders by nature and some very frugal. What am I tempted by this year? An I-Pod nano for my 20 year old college student. The new X Box for the family--and 15 year old son. Yes, I know these are just material things. But it is at this time of year when family members start talking about what they want. And I like giving my kids things that will delight them. It's a shame that it's all tied into the Christmas season. Maybe it would be a good idea to separate gift giving from Christmas, and not try to find out what everyone wants. Maybe at some other time in the year I'll surprise the family with something special. If I do, it will be paid for, and not put on a credit card.

So, that's my first tip for holiday shopping. Focus on what you already have--your friends, family, many material things and be grateful. As the saying goes, want what you have. And when you do purchase a gift, do so with cash that you can afford to spend, don't create a debt or a financial problem for yourself in the name of Christmas. Ginny

One of the fun ideas from our family is one we did with the adults for several years. We exchanged names in secret, usually on Thanksgiving Day. Then we bought that person a gift for $2 or less. "Less is better." If we found something for free, that was a real deal! On Christmas Eve after the children had opened their gifts from grandparents and aunts and uncles, we adults got to do our exchange. It was the most fun of the gift-opening. We took turns so that everyone saw what we got and only then knew who had drawn our names. The gift could be funny or serious - anything at all.

One of the fun things I remember was a straw hat with flowers and ribbons, sort of like Minnie Pearl was noted for wearing. It was given to my mother and then reappeared the next year for a sister-in-law. One person got a $.49 handle for a hammer, wrapped in a cardboard paper towel tube. The recipient said he really needed it! I got an "elephant ear" cookie, since I am an elephant collector. The challenge of finding something inexpensive, appropriate and fun was the novelty of the exchange. Fun doesn't have to cost a lot! I hope you have fun and don't spend a lot this Christmas. - Janet

BAH HUMBUG! I don't like the seductive urge to spend even more! Look over those newspaper and television ads with caution. The season seems to emphasize the lack of basic needs of some, more than the rest of the year. This is ok. It promotes awareness and sharing! It would be great to see the Christmas giving continue throughout the year for those in need because it doesn't just begin and end December 25. Isn't community and compassion what the celebrating is about anyway? When you are taking care of your basic needs, the things we take for granted, think about giving basic needs. Watch, look and listen this special time of year and you will be aware of the needs of the people in your community that you can assist throughout the year. Giving is a sure cure for that Scrooge in me. One inexpensive thing I enjoy is the snow, fresh air and sharing stories. Thanks for your ideas! Janell

To keep the "Happy" in Happy Holidays, know that you don't have to do it all! And look beyond the cost of the gifts to find ways to save your money and your sanity.

• Make the meal a pot-luck occasion.
• Get involved in a cookie exchange with 2-4 friends. Make one kind of cookie to share and end up with 3-5 different varieties. (Try to avoid a larger exchange group, or you'll still end up spending a lot of time in the kitchen)
• If you like to change your holiday decor from year to year, consider shopping Goodwill or summer rummage sales for great buys on unique items.
• Check the after-holiday sales to get next year's decorations, holiday cards, and seasonal paper products. But set a limit and don't overdo a good thing!
• Find creative and environmentally friendly ways to wrap gifts: in pillow cases or dish cloths; in reuseable gift bags from discount or close-out stores; in hand-decorated grocery bags (the kids will enjoy helping with the decorations!)

Make frugal shopping a game; keep the cost and time investment low, and you will reduce the stress on the budget while leaving more time for enjoying the season. - Kay

My favorite gift to make for friend and family is crochet towels for the kitchen. It's a gift that can be used all year round and by the time the next Christmas comes you can give it again.

Another activity I do when shopping is checking out the clearance racks. I find great bargains and usually can use them as gifts throughout the rest of the year. I spend so little that if I do not use it I can donate it to a good cause, such as Goodwill or domestic abuse shelters. - Mary T.

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