Avoid April Foolishness, with a Spending Plan 

I have a $100 Christmas gift certificate … More than three months later! I am having a tough time bringing myself to spend it.

The certificate is a plastic store card, and many of us understand how paying with plastic can be a bit of a trap. If you have $100 to spend, then the temptation is to spend the full hundred. Of course, when you find something you like for $100, you also stumble upon a slightly better version for $150. And if you are going to spend $150, then you might as well upgrade your purchase (and degrade your funds) and get the $200 model, with all the features and accessories … right?

Suddenly, instead of enjoying a $100 gift, you have turned the certificate into a 50% - off coupon, impulsively shelling out a hundred dollars of your own cash in the process.

Some might accuse me of being overly cautious. “You shouldn’t look a gift horse in the mouth,” they might say. “It’s a gift. Spend, spend, spend …” But I think the idea that you can be too careful with your money is a bunch of April Foolishness.

There is never a good time to spend money without a plan.

A budget helps you understand the income and expenses you have coming in and going out every month. It gives you a clear picture of how much money you may expect to have available for other purchases after all your regular bills and anticipated expenses have been paid. If you need help creating a budget, NFDM’s certified credit counselors can help you get started.

Once you know how much disposable income you have left, you can create a spending plan for the rest of it.

I add gift certificates that I receive to my spending plan and carry them over, from month to month, until I use them. So far, my spending plan for the $100 is to not spend it at all, until I find something that I would buy even if I did not have the gift certificate.

… Nothing yet!

In a way, it is fairly easy for me to hold on to a store gift certificate. I can’t use it anywhere else. As long as I make sure the card is not due to expire, and that the store is not going out of business, it’s a present waiting to happen.

What tools and techniques have you used to control your spending? Email us at Talkback@nfdm.org to let us know.

~ Jamel Dargan
Manager/ Editor
National Foundation for Debt Management
TalkBack@nfdm.org 

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NFDM & Habitat for Humanity – Improving Communities, One Dream at a Time

Dimario, referred to National Foundation for Debt Management by Habitat for Humanity of Pinellas County, came looking for assistance with his medical bills and collection accounts. Creating a financial roadmap that would help him understand the value of W.I.N., What is Important Now, was one of the first activities we tackled together. After learning about his expenses, we determined that a primary goal was to qualify this young single father of three for a Habitat home.

In November of 2007, I began working closely with Dimario as he started on his journey towards financial freedom and his dream of home ownership. We made sure credit and billing errors were properly disputed, while creating payment plan options that would relieve Dimario of his financial distress.

One year later, I had the occasion to see Dimario and his three children receive the keys to their very own Habitat home. This experience gave me the opportunity to demonstrate to my own children, who were also present during the home dedication, the importance of making a difference in someone’s life and that with determination and dedication, dreams may be accomplished. There is no better feeling than this.

Habitat for Humanity of Pinellas County, an affiliate of Habitat for Humanity International, has been working to revitalize communities and to improve the lives of families in need of a safe and affordable places to live since 1985. A non-profit housing organization, Habitat works in partnership with individuals and organizations, such as NFDM, to accomplish their mission of eliminating substandard housing.

As an NFDM Education Coordinator, I have had numerous referrals from Habitat—individuals who, due to poor credit ratings, were not able to qualify for a home. This is where NFDM lends a hand, by assisting and educating these consumers with their credit issues and ultimately getting them ready for a Habitat home.

I am very grateful to NFDM and Habitat for providing me with the opportunity to change people’s lives, one dream at a time.

You too may be eligible for a Habitat home. For more information visit Habitat for Humanity Pinellas County online, at http://www.phfh.org/ApplyforaHome.htm, or call them at 727.536.4755. Those outside of Pinellas County can visit http://www.habitat.org/cd/local, to locate an affiliate serving your area. 

~ Eric Muniz
Education Coordinator
National Foundation for Debt Management
TalkBack@nfdm.org

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 Stop the Madness in Three Easy Steps!

• First, OPT OUT of credit card offers.
  You can go to www.optoutofprescreen.com or you can call 1-888-5-opt-out (1-888-567-8688). This will stop the credit reporting agencies from selling your credit information. Selling your personal information is wrong on so many levels, but it is as common as rain.
• Second, stop telephone marketing by going to the National Do Not Call Registry at www.donotcall.gov, or you can call 1-888-382-1222 to stop those irritating phone calls.
  You can stop the marketing to both your home phone and cell phone.
• Finally, stop the junk mail.
  I still love to spend money, but I don’t miss the barrage of holiday catalogs that used to entice me with beautiful glossy pictures of items I never knew existed – but couldn’t imagine living without! Go to www.dmachoice.org/consumerassistance.php and select the type of advertising you want in your mailbox.

How easy is this? You are taking control of your financial future. Kind of powerful, isn’t it?

~ Marlene Ware
Education Coordinator
National Foundation for Debt Management
TalkBack@nfdm.org

 

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What Will Your Income Be in Ten Years?

 

So, this is my life?

 

As I often explain to the youth groups that I speak to, “I am only 44 years from a hundred … I have to make every minute count.” At this point they stop listening to me and attempt the higher math that will tell them how old I am. Last week (a group of 13 -15 year old young men spending some time in the County Juvenile Detention System) were stunned to do the math and figure out that I was 66 years old. I was surprised, too. So much for our educational system … but that is another story!

 

The reason I tell them how old I am is because age really does matter. If I could go back about 40 years and undo some of the mistakes I have made I would be so much further ahead! But, alas, I can’t and neither can you. But we can take a step back and review where we have been, where we are right now, and where we hope to go. The vast majority of my mistakes (too many to list!) were not entirely financial mistakes. That would be too easy to fix! No, our mistakes are much more complicated! You know what I mean? Have you ever applied for a credit card, never intending to use it (only for emergencies), and the next thing you know Macy’s is having a sale (total shoe emergency), Starbucks has Pumpkin Spice Latte and Eggnog Latte, for a limited time only (there’s room on my card!), or Tranquility Day Spa is having a ’special’ on pedicures (a must-have to go with the new shoes!) See how complicated it is?

 

It all comes down to choices. Some we make and some that are made for us. Spend a minute and think about where you were (financially) ten years ago.  What was your income? Did you have anything in savings? What kind of car were you driving? Were you happy? I can barely remember ten years ago (remember my advanced age), but I often watch my daughters and struggle as they make choices that I believe might complicate their lives (a story for another day).

 

Now think about where you are today. Same questions: What is your income? Do you have anything in savings? What kind of car do you drive? How’s it all working for you? Well, your feet are to the fire now. The economy isn’t taking any prisoners! If you are ever going to get real with yourself…today is the day! Finally, where do you want to be (again, financially) ten years from now? What will your income be in ten years? Will you have a nest egg put away for emergencies? Will you own your own home? As you know, I will be only 34 years from a hundred in ten years. It takes my breath away, but it also keeps me on track! How far are you from a hundred?

 

Your financial future depends on the choices you make today. If you have children, their future has everything to do with the choices you make today. One thing I know is that we sometimes get in our own way and sabotage our future. Don’t ever think it is some kind of character flaw to be smart with your money. Learn from and reflect on the choices you have made in the past. Did they help you or hurt you? Don’t wait for “Prince Charming” to ride up on his big white horse to carry you away from the messes you have made. Fix the messes yourself, buy a horse, and go find the prince!

Remember, if you don’t manage your money, someone else will.

~ Marlene Ware
Education Coordinator
National Foundation for Debt Management 

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No Fee Digital TV? - The End of Analog Broadcasting

Cable and satellite, aside from the old fashioned off – air antenna, are the two most popular ways consumers receive television signals today. In addition to their special subscription channels, these services generally include local programming and major networks such as ABC, CBS, Fox, NBC and PBS in their basic packages.

 

Digital Television (DTV) is a completely new technology which will replace our analog television systems. DTV allows us to view local television networks without subscribing to a monthly fee service—and without having to wrestle with rabbit – ear antennae. The new signal will be available in three different formats:

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Save Money on the Road

Over the passed year, the price of gas has weighed heavily on the minds of consumers. In the meantime, our wallets seem to have grown lighter. One of the things you can do to put yourself back in the driver’s seat and keep money in your pocket is ride sharing or carpooling.

Saving just twenty – five dollars each week, through ride sharing adds up to $1,300.00 in one year’s time. That may be your mortgage payment, for one month, or property taxes for a year. Ride sharing can help pay for your next vacation, or start your kid’s college fund. 

Carpooling is also good for the environment.

The fewer cars there are on the road, the fewer greenhouse gases and pollutants enter the atmosphere. As an added bonus, sharing rides gives us more opportunities to build strong relationships with our co – workers.

Ride sharing is not just for fellow employees.

Working families can also benefit from spending less money and spending more time together. Carpooling can turn your travel time into quality time.

Ride sharing is just one of many ways that you may be able to reduce your personal spending. Click here to let us know how you save money on the road.

Need help?

NFDM counselors can review your finances and help you create a budget that keeps you on track toward achieving financial wellness. To learn how NFDM can help you reach your short- and long – term financial goals, contact us by sending an email to counselors@NFDM.org (be sure to include your name, a phone number, and the best time to reach you). You can also reach a certified credit counselor, Monday through Friday, 9 am to 7 pm (EST), by calling us toll – free at 866.409.6336.