Money, Debt, and Credit are intimidating topics. However, knowledge can bring hope and answers to stressful times and provide practical, easy tools to use when your financial back is up against a wall. At Best Credit Service, we are more than willing to sit down and talk with you about your financial situation so that you can better understand money, debt, and credit. Our counselors enjoy the opportunity to provide guidance and advice to those needing direction in their financial lives. Feel free to call us and tap into the knowledge and free resources we have available. Sometimes the best things in life are free.

We discuss the following topics during counseling:

The following link provides a printable budget worksheet to follow along with.
www.neitherherenorthere.com

A budget is simply a game plan of how you're going to spend your money. That's it! There are people who budget and people who don't. Typically, those who don't incur more over limit fees on credit cards, bank charges for bounced checks, past due charges for bills missed, and less money in their savings and checking account. Money seems to vanish because the user doesn't have a game plan! There are some of us who have tried to budget, but find it extremely difficult because of unexpected financial responsibilities. That realization brings to light a couple of things budgets are meant to help you with and some common misconceptions of them.

• You will never be exact when budgeting, but you can get close. So don't fret if you're over or under a little bit.
• Budgets are often avoided because they remind people of the money they DON'T have. But remember, budgeting doesn't change how much money you have, it just lets you know where it's being spent.
• A budget can in fact provide stability and direction even when stress is high because it helps reduce unknowns.
• A budget is just a tool and will not solve financial difficulties alone.

Below are some suggestions on how to develop a budget and some tips on maintaining it. Here is where the budget worksheet is useful.

THE CLASSIC DUEL OF…

[Income]	vs	[Expenses]

= Income

• monthly net (after taxes) wages
• retirement checks,
• regular investment dividends (rental property checks, bonds, stocks, royalties, etc.)
• child support/alimony
• govt. checks (disability, social security, food stamps, etc.)

= Expenses

• mortgage/rent (home and/or rental properties)
• gas/electric
• phone (home and/or cell)
• internet
• cable
• car payment and/or transportation costs
• car fuel (approx.)
• insurance (medical, life, car, home, etc)
• child care (diapers, tuition, books, toys)
• child support/alimony
• food (groceries and eating out/snacks/fast food)
• personal care (clothing, hygiene, haircuts, etc)
• entertainment (movie rentals, hobbies, etc.)
• anything else that is unique to your situation and costs money.

If your expenses are more than your income, then you're upside down. Typically people who don't budget use their credit cards without keeping track of expenditures. Eventually they realize their expenses outweigh their income, but sometimes this happens too late and they're deep in debt. Budgeting helps avoid this.

Let's say you've just filled out the budget sheet provided and discovered you're "upside down". How much SHOULD you be spending? The following table answers this question according to percentages based on your net income.

Now, if you're spending more than the suggested guidelines, here are some tips to help you cut back.

	If you have both a landline and a cell phone, consider choosing just one. A lot of people have only one number.
	Take care of your car. Keep the tires inflated, don't carry unnecessary weight, drive smoothly, and avoid accelerating rapidly. All these things will help you save gas!
	Cut back on subscriptions or membership dues. Magazines, gyms, or any other unnecessary monthly expenditures add up.
	Sometimes you can combine services, such as cable/internet, for less cost. Consider cutting back on extra channels or go from high speed to dial-up if need be.
	Eat at home more! Compare prices between brands, plan a menu, buy fruits and vegetables in season, watch for sales, and make a grocery list BEFORE you leave the house. This helps you avoid impulse purchases.

When it comes to budgeting, sometimes there are hidden sources of INCOME that you're not aware of. These are nice to find. For example…

  Tax returns. Some people consider this a financial windfall and end up spending this money on "extras". Perhaps they buy a new TV or go on vacation. But what they don't realize is that this is money they could have had throughout the year. If you're having trouble making ends meet, claim more exemptions. Because federal taxes are withheld based on a rate which you determine when you complete your W-4, this means you'll get more in your paycheck but less at the end of the year. However, be careful to not claim so much you end up owing.

  Extra room. If you have a spare bedroom or living space above a garage, consider renting it out. If you live in a safe area and feel comfortable with the idea, then the extra income can go a long way in meeting monthly bills.

  Talents. Are you gifted at something special? Perhaps giving music lessons of any kind, knitting, sewing, repairing, landscaping, hauling, babysitting, dog walking, or ANY resource you have at your disposal which you can use to generate income can be useful. If there is something you really enjoy, these activities make the best jobs! Consider selling your service. It doesn't matter if you are a white or blue collar worker, everyone has something to offer! Even if on a small scale, little amounts add up.

  Liquidate. If buying got you in trouble, selling might help get you out. Perhaps there is a second or third vehicle not being used, knickknacks stored away, unused tools in the garage, children's toys or clothes, or even items in the yard that could be sold off to generate income. Instead of holding on to these "for a rainy day", consider holding a yard sale. Not only will you be generating money, but saving it as well by paying off debt and avoiding further interest charges. Who knows, you may find that dearly loved, long lost item in the midst of all the downsizing!

Setting financial goals for yourself is one of the most important things you can do. Not only does it provide you a clear course of direction, but once you've reached your goal, a TRUE sense of accomplishment is achieved.

This is something you can be proud of and look back on as you realize how far you've come in the right direction.

If you want to buy a new sports car, great! If you want that great vacation, awesome! But whatever you set your sights on, you have to plan for it. Setting financial goals is a big part of budgeting because it means YOU are taking control of your financial situation.

First, there are long-term and short-term goals

• Short-term goals are those that will be achieved in a year or less. For example, paying off a credit card or saving "x" amount of money are short term goals
  
  
• Long-term goals are those that take longer than a year to achieve, but you can begin working on today. For example, saving for your children's (or your) education or buying a home.

Once you've decided what your goals are, you will need to write down these goals and prioritize them. Here's an example.

Now that you have a general idea of what you want to shoot for, it's important to be specific. Describe the goal in detail, and then ask these questions of each of your goals as you write them down…

Q1:    "What financial resources do you need to reach this goal?"

Q2:    "What is the deadline you've set for yourself concerning this goal?"

Q3:    "How close to the goal are you currently?"

Here's an example. Let's take one of the above goals, "Buying a car".

Goal:   Buy a car

Description:   Buy a new car for under $15,000 within the next year

Resources:   I need $3000 for a down payment

Deadline:   This September

How close:   I have $2000 currently, need to save $111 a month for the next 9 months until I have $3000

Here are some things to keep in mind when writing your goals.

1. Be realistic. Shooting for a million dollar house is a nice goal, but not realistic if you only make $50,000 a year.
   
   
2. Be patient. Good things do come to those who wait. Becoming financially secure takes time.
   
   
3. Be optimistic. Write your goals in the positive, not the negative. Say, "I will" instead of "I want". If you want to quit a job because you don't earn enough say, "my goal is to find a better paying job".