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Health & Fitness

ANXIOUS ABOUT THE ECONOMY? CCCS OF MD & DE FINANCIAL EXPERTS OFFER A SOLUTION

Concerned about the economy? Financial professionals at nonprofit Consumer Credit Counseling Service of MD & DE (CCCS) offer practical advice and support to help you overcome your anxiety and crisis-proof your personal finances.

Are you worried about how the economy will affect you in the coming months?  If so, you’re not alone. As the holidays approach, many of us are feeling financially vulnerable.  We’re keenly aware the Federal budget battle isn’t over.  Meanwhile, sequestration and a sluggish job market continue to take a toll.  Despite these factors, there are ways to reduce your anxiety level and improve your financial future.  When certified financial professionals at nonprofit Consumer Credit Counseling Service of MD & DE (CCCS) were recently polled, they all agreed: The best defense is a good offense. To counter the current economic funk, get your personal finances under control.

Gail Pridgeon, who works at CCCS’s Bel Air, MD office, says many of the clients she’s seeing have been affected by the recent Federal sequestration and shutdown.  “These are often people who haven’t had to worry about their finances before, because they’ve had good jobs.  Some have been laid off; others are worried they’ll soon see a cutback.  You don’t think about it, but working even one day less a week can have a significant impact on your household income.  My job is to help them come up with a plan so they can ‘crisis-proof’ their finances.”

But to prepare for the worst, what can you do?  Pridgeon says one place to start is to track what you spend and suggests, “Make this a family project.  To kick things off, sit down and discuss what you hope to accomplish and why.  Then give each family member their own spending notebook, so they can keep a record of each thing they buy and the amount it costs.  At the end of the week, sit down together and take a look at where all your money went.  Use this information to help you set up or rework your family budget.  Also brainstorm ways to cut back, so you have money left to put into an emergency savings account.”   

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Jackie O’Neill, who counsels CCCS clients in Delaware, agrees.  “In any economy, the first step to becoming financially secure is learning where you stand.” O’Neill recommends that consumers begin by examining their motivations and goals.  “Anytime you want to make a genuine lifestyle change, it pays to ask yourself, ‘Why am I doing this?  What do I hope to accomplish?’ Once you know the answers to these questions, write them down and keep them where you can see them.  That way, they’ll inspire you anytime you’re tempted to go off budget and overspend.”

If you’ve always considered “budget” a four-letter word, O’Neill says it’s time to take a different view.  “Budgeting holds the key to getting where you want to go.  It’s not that hard to set one up.  Take a look at your paycheck stub to determine your income.  Review your checking, credit card, and loan statements to see how much you spend each month.  Then do the math.  When you subtract your expenses from your income, how much do you have left?  What can you do to make your money work more effectively for you?”

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Debbie Murphy, from CCCS’s Catonsville, MD office, points out that setting up a budget is just the first step.  “Sticking to it is the real challenge, but it’s necessary if you want to have the funds to build an emergency nest egg -- and in this economy, saving is a wise habit to get into.  If you find yourself in trouble, you’ll be glad you took steps to prepare yourself.”

Murphy says unnecessary spending is one of most important areas to tackle.  “We’ve all grown up hearing ‘more or bigger or newer is better.’  But spending everything we’ve got now leaves us with nothing for the future.”  To save, she suggests consumers consider downsizing their Smartphone and cable/satellite television packages. “These items often take a big bite out of a person’s budget, and they’re not essential.  Ask yourself, ‘Is it more important to have lots of cable or phone options now or to be financially ready when misfortune strikes?’”

Pridgeon notes, “If you’re looking for ways to cut back, you can even save on ‘must have’ items like food. Avoid eating out.  Check what’s going to be on sale before you plan your menu for the week.  Take a list when you go to the store, and consider using coupons.  These strategies may take a bit of extra time, but they can save you hundreds of dollars over the course of the year.  And learning to conserve now will make it easier to live on less if you suffer an economic setback.”

Murphy, O’Neill, and Pridgeon all agree it’s harder to cut back during the holiday season, but stress it can be done.  Murphy says this is another time when it pays to get your loved ones involved.  “If you have an extended family or friends at work, sit down with them and explain what you’re trying to do.  If you all normally give each other gifts, consider changing to a drawing where you each bring and receive one $10 gift instead.  And don’t worry you’ll be labeled a ‘Grinch’ for raising the issue. There’s a good chance they’ll be just as relieved as you to break the ‘gifts for all’ cycle.”

Pridgeon also suggests talking with your children.  “Explain why it’s important for you to work together this holiday and live within your means.  Tell them to write down the three items they most want, but let them know Santa will only bring one of the three.  Then find ways to make the season bright without breaking the bank.  Place your emphasis on spending time together instead of spending money.”

If you want to develop a financial plan for the holidays and beyond, CCCS of MD & DE can help.  Call 1-800-642-2226 to set up a free, confidential budget or credit counseling session.  All the agency’s financial professionals are certified, and sessions take place at local offices throughout the Baltimore area, on the Eastern Shore, in Delaware and by phone. The CCCS website also offers a wealth of free financial education resources, including an interactive budget form and calculator and podcasts and e-Learning courses on a variety of personal finance topics.

Worried that scaling back and living on less will make you feel deprived? O’Neill says, “Think twice.  It all comes down to attitude.  Instead of thinking about how much you’re giving up, think about how much you’ll gain.  Once you have your finances under control, you won’t worry each time you hear bad news about the economy.  You’ll be able to plan for and reach important goals like affording college or paying for retirement.  If you have children, you’ll teach them a lesson they can use for the rest of their lives.  That’s one of the best gifts of all.”

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Consumer Credit Counseling Service of MD & DE, Inc. (CCCS) is an accredited 501(c)(3) nonprofit agency that helps stabilize communities by creating hope and promoting economic self-sufficiency to individuals and families through financial education and counseling.  CCCS MD State License #14-01

 

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