CONTACT:
Jody Anderson
LSS Financial Counseling
218/726-4767
janderso@lssmn.org
Jackie Nelson
LSS Communications Office
651/969-2286
Jackie.Nelson@lssmn.org
Seeking Greater
Financial Stability in the New Year?
Along with
changing our diet and exercising more, financial goals are often at the
top of the list when it comes to making New Year's resolutions. Most
families, however, skip a great opportunity to get the entire family
involved in the financial planning process.
"It's
really a good time to sit down as a family and establish financial goals
together that involve everyone in the family," said Jody Anderson, program
director with LSS Financial Counseling Service. "A family meeting on
finances can be a great teaching tool for children. It's also just a good
time for all of us to take an honest look at our spending habits and how
they may or may not connect with our values and personal goals. If we've
been on the wrong track, it's a perfect time start fresh."
Anderson
offers these suggestions for creating a healthier outlook for your family
finances in the New Year:
Set
goals. Do you want to pay off your car loan, establish a college fund,
plan for a family vacation, sock more money away in your company
retirement plan or increase your charitable giving? Write three-to-five
financial goals this year and challenge yourself to stick to them. Have
your kids do the same!
Clarify
your financial picture. Figure out what you owe by gathering credit
card statements, car payments, mortgage payments, and any other loans.
Then write down what you own, including the equity you have in your home,
savings, stocks and retirement plans.
Have a
spending plan. Track your saving and spending - down to vending
machine items and special coffees. Some people discover that they spend
$100 a month on what they thought were trivial expenses, and then changed
their spending habits.
Become a
regular saver. Establish a payroll deduction plan with your employer
or a credit union. Do your own lawn maintenance and car washes. Clip and
use discount coupons. Make comparison shopping a habit.
Keep
good records. That includes records for your home, car and life
insurance. Check your policies. You may want to make changes to improve
benefits to you and your family.
Write a
will. Make sure you decide, on paper, where you want your assets to go
when you die. Otherwise, the courts will decide for you.
Review
your credit report. Your credit score impacts your ability to buy a
home, secure a car loan or get an apartment. It's a good policy to check
your credit report annually and determine whether you have good status, or
need to improve your score. In March 2005, individuals will be able to get
a free copy of their credit report through credit bureaus, such as
Experian, Transunion or Equifax. Lutheran Social Service also offers a
service that can help you understand your credit report and determine any
steps you need to take to improve your credit score.
Develop
a holiday spending budget. If you plan to pay your holiday bills for
more than the next 60 days, it's time to make some changes! Start setting
aside money now for next year and open a special savings account just for
the holiday spending.
For more
information about budget counseling or debt repayment planning assistance,
call Lutheran Social Service at 1-888-577-2227 or visit
www.lssmn.org/debt
