Keeping Your Money Safe

So far 2008 has been a very bumpy ride for most families. Bad economic news abounds, climbing gas prices, soaring food prices and mounting credit card bills not to mention the mortgage crisis and higher inflation are creating nervous Texans.

Texas is doing better than most states and College Station is as well. Economists state that we are not in an economic recession because we have not had two consecutive quarters in which the economy shrinks. But yet The National Bureau of Economic Research (NBER) defines recession as “a significant decline in economic activity spread across the economy."

Whatever the definition – it is clear to me and countless others in business that times are starting to get tight and we all need to safeguard our families against money problems.

Here is a list of things that you might consider to help ease the pressure on families and businesses:

  • Review your finances. This is a great time to make a budget – or what some would rather call it – a spending plan. With a spending plan – you still feel you can spend – just plan it instead of spur of the moment spending. To make a spending plan – take the last three months and chart all your expenditures and categorize your expenses. 
     
  • Look at your spending plan and see where you might be able to cut back.. what is a want and what is a need. (That may change with your budget but let’s at least get an idea of extra’s.)
     
  • Decide what is reasonable for all categories and start saving the remainder for savings.
     
  • Savings – if you don’t have much or any – now is a perfect time to start. You will need to shoot for 6 months of living expenses in the bank - just in case money. You never know when a job cutback is coming. Be prepared.
     
  • You might want to pay off high interest credit card debt now - the faster the better since your money on interest is not tax deductible and you are just wasting it.
     
  • Take any monies that you receive – gift, tax refund, tax relief or bonuses and pay down debt and save…. That should keep you busy.

2008 is not what most were expecting in business or personal revenue possibly so resist the urge to give in and start to buckle down - This just may get you in the saving spirit and in a better position for 2009.