Financial HealthDr Dave Jenkins, DMIN, LMFT

Family Room Services

Disclaimer These suggestion will not apply to

every situation.

You control your finances and the choices you make.

Prevention is still the best cure for a financial crisis.

Get Current Get an assessment of your finances

Gather all your bills and statements

Determine what assets are available to you• Savings• Stocks

Revolving Credit Accounts Stop using them

Pay off the balance in full each month

Develop a life style without them

Save for major purchases

Caution AVOID PAYDAY LOANS

Basic survival involves one of two things

• Increase your income

• Decrease your expenses

Plan for the Month Couples should have a budget

meeting

Singles should have an accountability partner

Develop a battle plan, i.e., a BUDGET

Get current on you bills

Plan for the Month a. Pay everything on paper before the

month starts

b. Develop a zero balance budget sheet - which means at the end of the balance sheet it should equal zero.

(Income minus expenses)

c. Any money left over should be applied towards the debt snowball (see step-5)

Basic Needs Take care of basic needs first

1. Food2. Shelter3. Utilities4. Transportation

Gas Insurance

5. Other loans

Emergency What would you do for an

emergency?

Your Credit Card is not your emergency account

Should be able to cover 3 – 6 months of expenses

Mini Emergency Account Create a mini emergency account

Save $1,000; FAST

It is not a slush account

Do NOT start the next step until the mini emergency account is funded

Debt Snowball

a. List all the outstanding debts in ascending order

• from the lowest to highest balance

b. Pay the minimum balance due for all debts except the first one (which should be the lowest balance).

Debt Snowball

c. Any remaining money, found money, or bonus money needs to be applied toward paying the lowest balance off.

d. Once that balance is paid off, do not celebrate yet. Apply all that money to the next balance on the list.

Emergency If there’s an emergency

• Use the mini emergency account

• Stop the debt snowball

• Rebuild the mini emergency account

Emergency Once all debts are paid off

Fully fund the emergency account

3 – 6 months of expenses

Retirement vs. College Fund

Your retirement needs to be funded first.

Invest 15% (of own money) into retirement

Your kid’s education will not pay for your retirement

Mortgage

Pay off mortgage

Invest and enjoy your wealth

Other Tips Have a yard sell to fund your mini

emergency account Sell your services, i.e. piano lessons,

tutoring, woodworking, etc Stop eating out, pack lunches Temporarily decrease your TSP

contribution to 1%

Other Tips If you typically get a tax refund,

increase your exemptions. (Consult your CPA first.)

After you have a $1,000 emergency fund, consider increasing your insurance deductibles.

Use the Library for renting free movies.

Other Resources Mortgage Assistance *800-424-2246

Credit Counseling *800-685-2706

Bankruptcy Advice *800-379-0985

Child-Support Enforcement *877-696-6775