According to a recent national survey, Americans say they live comfortably but their worries about personal finances have increased.
In an effort to decrease the stress of worry and prepare for the future, more Americans are working to develop financial plans. All financial plans, regardless of how elaborate or detailed, are based on the same two-prong approach.
Spend less.. Save more.
A DMP can be an
intristic part of a
workable financial plan.
Participating in the Credit Advisors Debt Management Programs puts you steps ahead in the financial planning race!
Delivery of the spend less and save more plan is developed through budgeting, eliminating waste, decreasing debt, goal setting, and savings programs. In a Credit Advisors DMP, a budget is determined at the initiation of the program, seeking to eliminate waste, goals are set and the principle purpose of the program is to decrease debt. Simply stated, completing the Debt Management Program, enables a financial planning consumer to meet four out the five guideposts.
Continued efforts to eliminate waste, to spend less, will require a complete examination of spending habits and motivations. Just like a business, you must review your inventory. Do have you possessions you paid too much for, didn’t really need or are already bored with and no longer use? Do you have possessions you called ‘great buys’ when purchased, but now are unable to remember why? Do you periodically examine your spending, looking toward eliminating waste? Do you analyze your living expences to see where savings could be realized? If not, there are some adjustments you may want to make.
Create a financial
plan to reach your
Learn to distinguish between wants and needs. Needs are necessary to sustain family life (food, shelter, clothing), while wants enhance or improve family life. It is critically important that you do not deceive yourself into believing that a want is a need. Many budgets are broken by this mistake and it is a recipe for financial disaster.
Before making big ticket purchases borrow, rent or tryout the item to eliminate ‘want’ purchasing.
Start a saving program. Talk to your employer about pre-tax savings programs. Remember: pay yourself first. Don’t worry that the amount is too small. The habit of saving will be created, regardless of the amount. Remember, $50 a month for 25 years at a 5% yield would grow to $30,000. Not only does the DMP program assist you in decreasing debt, it also helps to develop the habit of setting a specified amount of money aside each month. Once debt is paid in full, those funds can easily be contributed to a more extensive savings plan.
Each of the first four guideposts will assist you in the fifth. Setting and reaching your goals will motivate you toward progress. Talk to you credit counselor about the short and long term goals of your DMP. So, stick to your plan. Get out of debt with Credit Advisors and continue your efforts toward a workable and growing financial plan.