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A National 501(c)(3) Non-Profit Organization
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CACC Moneywise Monthly Budgeting & Savings News You Can Bank On
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January 2010
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Welcome to 2010; a new decade and a fresh year. For many Americans 2009 was a very tough year, financially and personally as the unemployment rate escalated along with foreclosures, credit card delinquencies and personal bankruptcies. Any good news seemed to be outdone by some bad economic news. Many couldn't wait for last year to end.
Well, here we are starting out a New Year and a new decade full of financial possibilities. But, as they say, "be careful of what you ask for." While some people are well prepared for a fresh start in 2010, having used the last part of 2009 to prepare a Spending Plan and set some personal financial goals.
Have you set your Financial Goals for 2010? By the way, "winning the Lottery" is not a real goal. It is a hope, a wish, a last ditch grasp for help, but not an objective. Real Financial objectives require you to give it some thought, do some research, and plan your way to the finish line.
Some think of financial goals as only being the big ticket expenses, but goals should not be limited to only really big items like paying off all of credit card debt or buying a house. Financial goals can be everyday things like buying a new set of tires for the car, replacing a broken refrigerator, or buying the kids some new clothes for school. These may seem like small, everyday expenses that aren't worth the time spent planning. But, for families on a tight budget, even the smallest purchases can be a major accomplishment worthy of planning for.
Separating financial goals into short-term and long-term goals is the way to go. Short-term goals are things you hope to accomplish in the next 12 months. Long-term goals generally take longer than 12 months.
How about planning for a vacation this coming summer? Don't forget planning how you will begin to fund your emergency savings account. Where will the money come from? How much money can you set aside each month on your way to meeting your savings goal?
It's important to be detailed and realistic in your planning. Putting down "get out of debt" is a start but not enough. A real plan includes each step along the way toward accomplishment. If the plan includes making extra payments toward a debt, where will the extra money come from? What other expenses will have to be delayed in order to meet a more pressing goal's deadline. Having a realistic timeline in which to accomplish goals is also very important.
Financial goals do not have to be all about spending money either. Goals can, and should include the elimination of expenses that are not providing a good return for the investment. Expenses like gym memberships that haven't been used in months, subscriptions to magazines that you never seem to have time to read, expensive cell phone and internet plans that may be more than you need. There are lots of areas to consider when you are making plans to improve your financial position. Some expenses can't be cancelled for several months due to a service contract but you should plan for the cancellation and what you'll do with that extra cash flow in the future.
Good financial planning considers both short term and long term goals and how to prioritize them. The first goal should be to get out of debt. Then you should work to build an emergency fund and begin saving for retirement. Take the time now to plan for this year and your financial future.
Don't forget to write the year 2010 on your checks!!
Thank you for choosing Consumer Advocates Credit Counselors as your credit counseling organization. We welcome your comments and suggestions for future issues. Please email education@caccdebt.org with your ideas.
Is there someone you know who would benefit from money management strategies and information? Please forward this email to them!
The entire CACC staff wishes you Peace, Prosperity, Good Health, and Much Happiness in 2010!
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The New Year has started...
What do we do now?
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Whether you've overdone Holiday spending or not, if you've financed some of your purchases it's important to pay down those debts as soon as possible to minimize the long term cost of carrying debt. Go through receipts and plan for the coming bills along with other, usual bills like rent, car payments, electric and water in mind, because those bills are on the way as usual.
Use your Spending Plan as your guide to manage regular and new expenses. If you've not completed a Spending Plan, also known as a Budget, getting that done really should be a priority before you can properly see and manage upcoming expenses. See the October issue for help creating a Spending Plan.
Don't forget to include any annual expenses that renew once a year, often in January, such as Roadside Assistance memberships, Appliance Protection Programs or other annual expenses that are easy to forget about since they are due just once a year.
"January is slipping away ... start planning Your 2010 finances Today!"
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** For more tips, information, and resources on budgeting, saving strategies, ways to combat debt, and how to use credit responsibly, call Consumer Advocates Credit Counselors toll-free 1-800-763-1874.
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Get the most out of your Debt Management Program! ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
As you work through the process of eliminating your debt utilizing the Debt Management Program, here are some smart things you should do to ensure that you are getting the maximum benefits from each and every payment you make.
Open Mail from Creditors and Lenders Right Away
If you are on a DMP you are likely not getting many marketing pieces in the mail, so you can be assured that any mail that comes from a lender is important. With phase two of changes to the new CARD Act laws coming into effect in February which directly impact your Credit Card accounts, it is important that you read all mail right away because it may contain changes to your accounts that require your knowledge and, possibly, your approval.
Understand the Credit Rebuilding Process
Many clients think an 800 Credit Score is going to happen overnight once they enroll into the Debt Management Program. Remember, damaging credit took time and so will the rebuilding process.
According to Fair Isaac®, enrolling in a Credit Counseling DMP itself has neither a positive nor negative effect on a credit score. Credit Score damage is done when payments are late or missed altogether. The process of paying down debts with on time, monthly payments, through a DMP or not, is what has a positive effect on your credit score over time.
Having patience and a positive attitude during the process of paying down debt is the best way to get through what can be a difficult few years.
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Adopt the Attitude of a Saver and
pick up the Pennies!
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Have you ever seen someone walk past a penny lying in a parking lot on their way to the car? Did you pick it up or were you embarrassed to be seen picking up a penny to?
Have you ever stood behind someone in the grocery checkout line who was not using coupons thinking how much money they were throwing away by not spending a little time before each shopping trip looking for coupons for the items they needed to buy? Or, do you avoid using coupons also because you don't want to be viewed, possibly by a friend of neighbor, as having to "pinch pennies" by using coupons?
Have you ever thought of asking a salesperson for a discount but didn't because you felt self conscious asking for some money off?
This economy has certainly helped a great many people get over their embarrassment of asking for discounts and picking up lost change. But, far too many people still have not adopted the attitude of a true Money Saver.
True money savers are constantly thinking of ways to save. They are not concerned with the opinions of other people about their thrifty habits, only that they are building their savings for the future using every possible means available.
We've just come through the "Spenders" favorite season. Those with a Spender's mentality are in hog heaven during the holidays because their behavior is encouraged and applauded. Wouldn't it be great if banks gave away "door buster" gifts to people who lined up at midnight to come in and open a savings account?
Changing your focus from "How can I Spend" to "How can I Save," is not easy, but in making the change you can empower yourself to actually have some control over where you will be financially in the future.
You can plan to save a certain amount over time to allow your family to make specific, planned purchases. Those purchases might be vacations or college educations, but they will be expenses you have earned the money for in advance. And, the best part is that when you save the funds in advance of a purchase, you don't have to pay extra in the form of credit card interest or loan costs.
When you are a Saver, it's OK to spend money sometimes, even on frivolous shopping, and when you save money you know you have some extra to spend so you can avoid the guilt often associated with impulse or emotional buying.
When you save money where should you put it? Here are the common types of savings accounts:
Basic Savings Account: This is the type of savings account that banks usually offer. People can deposit and withdraw money from their account, the balance of which usually earns a minimal rate of interest (these days, less 1% or less yearly). These savings accounts usually don't allow you to write checks or to take money out of an ATM.
High Yield Savings Account: High yield savings accounts usually offer better interest rates than regular savings accounts but come with more restrictions. Most high yield savings accounts have a minimum balance requirement and limit the amount of transactions that you can make each month. If you have enough money and don't see yourself needing to take money out of your account on a regular basis, this type of account may be a good option.
Money Market Account: Money market accounts generally pay a higher interest rate than regular savings accounts and often give you a higher rate the higher your balance. Money Market Accounts often carry similar restrictions as high-yield savings accounts. They do offer the ability to write checks on the account.
Online Savings Account: Many online savings accounts are paying more than double the interest amount that traditional banks are paying. The reason that these institutions can afford a higher interest rate is because, since all of banking is done online, they don't have to pay the high overhead costs associated with operating actual brick-and-mortar bank branches so there is more available to pay back to customers.
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A Money $aving TIP
"Once you select a type of savings account, use the telephone, newspaper, and Internet to compare rates and fees offered by different financial institutions-including those outside your city. These rates can vary a lot and, over time, can significantly affect interest earnings."
Have a money saving tip that you'd like to share?
Send it to us for possible publication in this newsletter! education@caccdebt.org
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| There have never been more Americans in financial trouble in our lifetime!
We need your Help! CACC is a non-profit, IRS approved 501(c) (3) educational and counseling organization. Our expenses and operations are supported through generous contributions from corporations and individuals like you. Will you please consider providing some support so that we can continue our mission? The donation you make today will help fund debt relief programs, education, and client services while providing help and hope to thousands.
YES, I'd like to help fund CACC's Debt Relief and Education efforts with a contribution of:
( ) $25 ( ) $50 ( ) Other $___________.
Please Mail your Donation to:
CACC Education Development
23123 U.S. 441, Suite 107
Boca Raton, FL 33428
Thank you for your generosity!
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Support CACC while you save up to 85% on your favorite Magazines! Now that's a Win-Win!
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CACC Workshops and Seminars 
As a non-profit Credit Counseling and Financial Education organization, CACC is dedicated to reaching out to the community. CACC provides financial education seminars and workshops at community centers, local organizations, and companies.
Popular Topics Include:
- Managing Money in Tough Times
- Creating and Using a Spending Plan
- Managing Debt and dealing with Creditors
- Financial Trouble signs and What to do Next
- Smart Buying Strategies
- Fighting Identity Theft and Financial Fraud
- Understanding Your Credit Report and Boosting Your Credit Score
- Creative Ways to Teach Kids About Money
- Finding More Money to Save
- How to Get Out of Debt
Ask about customized seminars for your group, staff, congregation, team, or club! Call 1 800-763-1874 or
e-Mail: mikes@caccdebt.org
Upcoming FREE Workshop Schedule
If you live in South Florida, join CACC Director of Education, Mike Schiano, on the First Monday of each month at the Broward County Main Library from 2-3pm and the First Wednesday of each month at the West Palm Beach Public Library from 7-8pm for FREE Money Wise Workshops.
January - Managing Money in Tough Times - Start 2010 with Smart Money Strategies
February - Give Yourself Credit! Understanding Your Credit Report and Boosting Your Credit Score
March - Budgets are like Diets! Creating and Using a Spending Plan
April - Managing Your Way out of Debt!
May - Fighting Identity Theft and Financial Fraud
June - Creative Ways to Teach Kids about Money
Register to attend:
Broward County Main Library at (954) 357-7439.
West Palm Beach Public Library - (561) 868-7791 ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
Consumer Advocates Credit Counselors, Inc. is a 501 (c)(3) non-profit credit counseling organization providing credit counseling, financial education, and debt management services. Please visit our website at: www.caccdebt.org
Additional consumer resources:
National Drug Abuse Hotline
1 800 622-HELP
National Domestic Violence Hotline
1 800 799-SAFE
Suicide & Depression Hotline 1-800-999-9999
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Til Next Month,
Consumer Advocates Credit Counselors, Inc.
Copyright ©Consumer Advocates Credit Counselors, Inc. 2009
Use of all or part of this newsletter allowed with proper attribution and link:
Source: Consumer Advocates Credit Counselors, Inc. www.caccdebt.org |
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