 |
 |
|
|
7000 Peters Creek Rd., Roanoke, Virginia
1-866-260-5994 |
CCCS of Southwest Virginia |
|
|
|
|
|
|
|
|
Budegeting Advice |
|
 |
|
| |
| |
Every month I put $100 into my savings account, but then I go get
it out again before the month is over. How can I really save?
- Wants to
Save
|
|
| |
| |
Dear Steve,
It
sounds like your heart is in the right place, but your money is not. The first
step is to create a total spending plan with savings built right in.
Building this plan is as easy as 1-2-3
Step 1:Find out where
your money is going now by tracking your spending.
Step 2: Determine what
you want to do with your money by establishing priorities.
Step 3: Make your
plan. And don’t forget to include savings in that plan. At MMI, our professional
counselors highly recommend that you “pay yourself first!”
Okay, so
you’re probably thinking that establishing a savings plan doesn’t sound that
easy. But rest assured, it’s always worth it!
Good
Luck,
Susan
|
|
| |
| |
I am a bookkeeper who does a good job at work, but my personal
finances are a mess. I’m so ashamed. Why can’t I handle my own money when I do
such a good job at work?
- Bookkeeper in Trouble
|
|
| |
| |
Dear In
Trouble,
Financial problems affect all types of people—even bookkeepers.
Remember your personal finances are very different than what you handle at work.
For one thing, your personal finances are just that—personal. At work,
you have little emotional investment in keeping the ledger. But at home, every
time you pull out your checkbook, out comes a tangle of dreams, habits, security
issues, etc. that cloud the transaction.
In addition, you are trained to
do your job, but you probably had little training in personal budgeting. Few
people do. Instead, many of us learn from the school of hard
knocks.
Fortunately, there is help available. MMI offers a booklet titled
"Understanding Money and Credit" that teaches excellent budgeting skills. Please
email customerservice@cccssouthwest.org to request this free
publication.
Best Wishes,
Susan
|
|
| |
| |
I am a mother of three young children. I would like to start
teaching them about using money but an not sure where to start. What suggestion
do you have?
- Mom of Three
|
|
| |
| |
Dear Mom,
I’m so
glad you asked! It is never too early to teach your children about
money.
You can start by teaching your children the difference between
needs and wants. You can do this during your usual trips to the store. You’ll be
so proud the first time they tell you they “want” a toy rather than the usual “I
need” routine.
Also start involving the children in the family’s
finances. That doesn’t mean you have to divulge every detail, but just enough so
they understand that money doesn’t grow on trees. Remember to teach them that
the money has to cover three things: sharing, saving and spending.
Next,
allow your children to make spending choices of their own. Giving an allowance
works for some. However, if you expect your children to be contributing members
of the family, you may not want to tie allowance into everyday
chores.
Again, thanks for asking. It is so much better for them to learn
basic principles now, while their mistakes have few
ramifications.
Susan
|
|
| |
| |
I don't know why, but lately the only way I can make it to the
end of the month is to ask for an advance on my paycheck. And now my boss says I
can't take any more advances. What am I supposed to do now?
- More Month Than
Money
|
|
| |
| |
Dear More
Month,
Unfortunately, it is impossible to answer your question without
understanding your total financial picture. The reason you are running out of
money could be for any number of reasons. At MMI, we counsel thousands of people
in your situation every month. Each client is unique and so is his or her
situation and solution.
The good news is that you are already on the
right track by asking for help. I recommend taking that next step by sitting
down with a certified credit counselor. Two heads are better than
one!
Best wishes,
Susan
|
|
| |
| |
I have a very basic budgeting question: When I budget $50.00
monthly for doctors' visits and do not visit a doctor, what do I do with that
extra money? It's likely that in a few months I will need that much or more, and
if it's spent, I'm stuck. However, it's hard to see money in the account and NOT
spend it! This problem exists equally with utility bills, etc.
- Signed 31 and
Still Learning
|
|
| |
| |
Here is how I suggest you
handle this budgeting situation:
Step 1: List all those expenses (like
medical) that come up during the year but don't happen every month. For
example's sake, I'll use medical, Christmas and car upkeep.
Step 2:
Estimate how much you will spend for each expense over the next year, i.e.
medical $250.00, Christmas $300.00 and car upkeep $300.00. Now divide each total
by 12. Medical $20.00, Christmas $25.00 and car $25.00. Those occasional
expenses are now monthly expenses.
Step 3: Add the monthly totals for a
grand total. This total is your monthly deposit to your newly opened separate
savings account. My total is $70.00.
Step 4: On the front page of the
spiral notebook write Monthly Summary Deposit Record. Underneath on the first
line write the date and the total deposit for that month. i.e: June, 2001.
Deposit $70.00.
Step 5: At the top of page two write Medical. Underneath
on the first line write the date and the monthly payment to that account.
Example: June, 2001. Deposit $20.00. Repeat the procedure page by page until the
total deposit is accounted for.
Step 6: Make the deposit every month and
assign the monies to the proper accounts.
Three months pass. Time for an
oil change. Open the notebook to Car Upkeep. There's the money. Withdraw what
you need, subtracting the amount from both the total deposit and the Car Upkeep
Account.
For utilities ask the utilities companies for a balanced
billing plan. Or average your bills and set the difference aside in your special
account.
|
|
| |
| |
Is $200 per month spending realistic? When I created our budget
with debt management in mind I budgeted $200 per month spending money ($120 for
my husband and $80 for me). We use this money for fun stuff that doesn't include
eating out, necessities, or one time events like concerts or plays. Those are
all things that I have budgeted seperately. My husband constantly tells me that
our "fun" money isn't enough to make it through the month. Am I being
unrealistic to only budget $200 for "fun" money, and is it unrealistic of me to
expect him to buy things like cigarrettes with his "fun" money?
|
|
| |
| |
Only you can determine how
much money you need for "fun." But maybe this will help. Here is a "Sample
Spending Plan" that we promote on how you should allocate you
money.
Housing (20-35%)
Personal Care (2-4%)
Food (15-30%)
Insurance (4-6%)
Personal Debt (20% max)
Health
(2-8%)
Transportation (6-20%)
Utilities (4-7%)
Clothing
(3-10%)
Misc. Items (1-4%)
Savings (10% min)
It may seem hard to
break old spending habits, but encourage your husband to try it for a while.
Believe it or not, getting out of debt and seeing those rewards is also really
fun!
Best of luck,
Susan |
|
| |
| |
My boyfreind and I plan to buy a house in the next 9 months. I
will relocate to the state he lives in. He is about $40,000 in credit card debt.
I will sell my home and expect to make 10-40K from it. What is the best way to:
1. Handle his credit card debt and 2. Apply for the new mortgage?
Thanks,
Crystal
|
|
| |
| |
Dear
Crystal,
Before you blend your finances with your boyfriends, ask
yourself if you are sure that the relationship is ready for this step. Please do
not be offended, I am not suggesting that you don't love each other. I only ask
because so many people write to me each month because they got into a situation
with a boyfriend/girlfriend that ended in financial disaster.
An
alternative might be for you to purchase a home in your name, using your money
as a down payment. Your boyfriend can "rent" from you until you are married. At
that time, if it makes financial sense, you can refinance the mortgage
together.
This would also give your boyfriend time to repay his debt and
improve his credit rating.
Regardless of what decision you make, I
sincerely with you both the best of luck.
Susan |
|
| |
| |
My husband and I just bought a new house and new car,we also have
credit card bills. We got in way over our heads and our bills exceed our income
what should we do.
|
|
| |
| |
Congratulations on the
purchase of your new home. That is a big transition to make and maybe things
aren't as bad as they seem. Perhaps you haven't put enough time and effort into
creating a new, workable spending plan? Many consumers fall into the trap of
continuing to live their same lives even though their situation has
changed.
To create a plan, sit down with your husband and figure out
where you are financially by writing down all income, debts and living expenses.
Then, together, determine your financial goals. For example, a short term goal
might be to pay down your credit card debt. (By the way, we can help with this,
just call 800-762-2271!) Finally, revisit your current financial situation and
determine where you need to make changes in order to reach your goals. For
example, you may determine that you need more affordable transportation so that
you can begin saving for retirement.
I sincerely wish you both the best
of luck,
Susan |
|
| |
| |
Please, I would like to know the specific percentages of your
income that should go to housing, clothing, groceries, entertainment, medical,
savings and whatever else I have left out? I just filed bankruptcy and don't
want to make the same mistakes again!
Vicki
|
|
| |
| |
One of the guidelines MMI
uses in advising people on "what to do with your money" is a formula we outline
as: 70%-20%-10% = 100%. Translated, that means of your net income, no more than
70% should go towards living expenses. These expenses are for such items as
house payment, food, utilities, etc. No more than 20% of your income should go
to your creditors. These credit payments would include vehicle payments and
credit card payments. The remaining 10% of your income should go towards
savings, investments and to cover emergency expenses. If you follow this
70-20-10 formula, you will be practicing sound financial money
management.
Here is a "Sample Spending Plan" that we promote on how you
should allocate you money.
Housing (20-35%), Personal Care (2-4%), Food
(15-30%), Insurance (4-6%), Personal Debt (20% max),
Health (2-8%),
Transportation (6-20%), Utilities (4-7%), Clothing (3-10%), Misc. Items (1-4%),
Savings (10% min) |
|
| |
| |
|
 |
|
|
| | Home |
Privacy Statement |
About CCCS |
Contact CCCS |
Site Map | |
|
CCCS, A Division of Money Management International
Regional Headquarters - 7000 Peters Creek Rd., Roanoke, Virginia
Corporate Address - 9009 West Loop South, Seventh Floor, Houston, TX 77096 |
|
|
|
