Family Resource Management
Living for Today — Planning for Tomorrow
News You Can Use
Shape-up Your Spending
How is your financial health? This is a good time to do an annual checkup to assess financial fitness and get your finances in shape. What you don’t know CAN hurt you! Hidden financial problems usually continue to get worse until you identify them and take action.
Do a quick financial checkup by answering the questions:
- Do you spend less than you earn?
- Do you spend no more than 15 to 20% of your take-home pay each month for credit payments, including car notes, credit cards and all other debts, except your house note or mortgage?
- Do you have an emergency savings fund that can cover one to three months of your living expenses?
If you answered “no” to any of these questions or you are unsure, then you may need to do a few money management exercises to shape-up your spending.
How much do you spend? Begin collecting daily sales receipts and monthly billing statements to create a realistic list of monthly expenses. Listing every cent spent for at least one week can also be an eye-opener! Compare monthly expenses to income and then to savings. Use these records to look for tell-tale signs of problem areas that may need attention.
If you don’t have an emergency savings account large enough to pay expenses for at least one month, then you could be just one paycheck away from disaster. Shape-up your spending now by reducing unnecessary expenses, plugging spending leaks, and starting a savings plan for healthy future today.
The Mississippi State University Extension Service can provide more tools and workshops to help improve your financial health. Financial Fitness publications and a short video are available on the MSUcares.com website, as well as, through your local County Extension Office. Look for the Financial Fitness Checklist, information sheet # 1762; the Financial Fitness booklet with worksheets, publication # 2398; or the 7-minute video Financial Fitness Podcast.
Your MSU Family Resource Management Extension Area Agent can also provide Financial Fitness workshops or presentations for groups and materials for individuals to complete basic money management exercises. She may also be able to refer you to MSU Money Mentor Volunteers in your area who can provide one-on-one encouragement and support to those who wish to shape up their spending.
