budgets, emotional spending, saving and even how to become debt free. The church has a great website and training program for those who need help planning their financial future.
EWS STORY — 17 SEPTEMBER 2008
Wise Financial
Management During Tough Economic Times
Recent studies show one
in four American workers is seriously distressed about his personal financial
situation. Add to that the uncertainty of the economy and there becomes an
increased need to improve personal and family financial management.
Richard W. Ebert Jr., the
director of Employment Resource Services for The Church of Jesus Christ of
Latter-day Saints, says, “Financial
problems are a source of much unhappiness and are certainly a major factor in
family and work difficulties. Unresolved, they can lead to crushing debt and
divorce.”
Knowing this, leaders of
the Church have counseled its members for decades to prepare for hard times by
avoiding financial problems and becoming more economically
stable. Recently, the senior leadership of the Church published the
brochure All Is Safely Gathered In: Family Finances to
help members manage their resources.
The brochure advises
families to “prepare for adversity by looking to the condition of your
finances. We urge you to be modest in your expenditures; discipline yourselves
in your purchases to avoid debt. Pay off debt as quickly as you can, and free
yourselves from this bondage. Save a little money regularly to gradually build
a financial reserve. If you have paid your debts and have a financial reserve,
even though it be small, you and your family will feel more secure and enjoy
greater peace in your hearts.”
The brochure is available
on the Church Welfare Services Web site at www.providentliving.org. The Web site also provides
the following guidelines for families to become more financially
responsible:
1. Avoid debt. Learn
self-restraint by spending less money than you make and saving money to
purchase what you need. Avoid debt except for vital needs, education and the
purchase of a modest home. If in debt, try to pay it off quickly.
2. Use a budget. Keep a record of your monthly income and expenses. With this information, set up a family budget. Establish how much you will save, how much you will spend for food, housing, insurance, utilities, etc. Reduce what you spend on things that are not necessary.
3. Teach family members early the importance of working and earning. Children should be responsible for the decisions that affect their own money and face the consequences of their bad spending. As your children mature, help them understand the family financial situation, budget goals and their individual responsibility within their families.
4. Work toward home ownership. Improve the home you acquire so you can use the accumulated equity for a better home if you decide to sell it.
5. Appropriately involve yourself in an insurance program to avoid the significant debts place upon families when they are uninsured.
6. Involve yourself in a food storage and emergency preparedness program. Planting and harvesting a garden annually can help the family budget and encourage food storage.
7. Build a reserve. Accumulate savings little by little and use it for emergencies only.
2. Use a budget. Keep a record of your monthly income and expenses. With this information, set up a family budget. Establish how much you will save, how much you will spend for food, housing, insurance, utilities, etc. Reduce what you spend on things that are not necessary.
3. Teach family members early the importance of working and earning. Children should be responsible for the decisions that affect their own money and face the consequences of their bad spending. As your children mature, help them understand the family financial situation, budget goals and their individual responsibility within their families.
4. Work toward home ownership. Improve the home you acquire so you can use the accumulated equity for a better home if you decide to sell it.
5. Appropriately involve yourself in an insurance program to avoid the significant debts place upon families when they are uninsured.
6. Involve yourself in a food storage and emergency preparedness program. Planting and harvesting a garden annually can help the family budget and encourage food storage.
7. Build a reserve. Accumulate savings little by little and use it for emergencies only.
The Web site also
provides a number of financial tools to guide families and individuals in the
decision-making process. These tools can help determine — based on an
individual’s own income — how soon loans and debts can be paid off, how much to
save for retirement, how much to save to reach a specific goal, and the monthly
payment on a new home.
FREE FINANCIAL HELP WEBSITE:
Mint.com - Helps you reach your goals
Set a budget and create a plan to reach your personal/financial goals. You can track your progress online or stay up-to-date with monthly emails. And we'll help you achieve your goals faster with helpful free advice and next steps.
No comments:
Post a Comment