[vc_row][vc_column][vc_column_text]The holidays are over, and the financial piper shakes his head, reviewing your income and expenses. Meet Tom and Tammy, who are wondering how they’re going to get out of debt, pay their bills, set aside funds for a financial savings cushion, and feel more fiscally robust in December 2017.
Jeff D. Gorsline, managing partner and financial advisor at Evergreen Wealth Management, LLC in Williamston, has some ideas for Tom and Tammy:
“Every individual or couple needs a budget to which they’re committed. Sometimes, it takes tracking everything you spend, so those un-recognized expenses get noticed. This could be an impulse purchase at the store, a tool on sale, monthly gas purchases, or a beer at the pub. These become problems when they’re not in the budget.”
A budget helps people live within their means. Individuals or couples should set short and long-term financial goals, and stay honest and accountable on income and expenses. Short-term goals might include listing all bills and due dates, and stop using and start paying down credit card balances. Long-term goals might be saving for a special vacation or setting aside extra funds for emergencies or retirement.
It’s not always easy to separate our wants from our needs. Tammy may want to eat out once a week and Tom may want cable TV to watch sports. Those are wants. Needs include housing, food, transportation, phone, heat, and water. Tammy and Tom could be creative and share in cooking meals at home. Tom could give up cable TV, and see if a friend with cable will let him occasionally watch a game at his house.
As they begin paying down debt, they should look at putting 10% of their combined income toward their faith community or a charity. Start contributing to a savings account from every paycheck, even if it’s only $10. Put change in a jar – it all adds up. Pay at least the minimum on credit card debt – more if you can afford it. Credit cards should really be used only for emergencies or large purchases, like replacing a broken water heater.
I only recommend taking a second part-time job if you have substantial debt. We need time to spend with our spouses, and if there are children, time with them. If an employer offers a 401K plan, use payroll deduction to take a determined amount out to contribute to your plan from each paycheck. If you don’t see it, you won’t spend it.
If your job is on a bus route, try using that for transportation. If your work is relatively close to home, consider bicycling in warm weather. If a group of work colleagues live near you, try car-pooling. Not all jobs allow that type of flexibility, but if they do, it’s a good way to save on car mileage and fuel.
Gradually teach children the cost of immediate gratification. All too often we take children to the store, for example, and they see a toy. You see it’s on sale for $4. You buy the toy, and within a day or two, the toy is collecting dust bunnies in the corner. It’s up to parents to save for very young children. Once they are 10 or 11 years old, they can earn an allowance by doing household or outside chores, like raking leaves. Every child should have a piggy bank. When they get their allowance, half goes in the piggy bank, and half is theirs to spend.”[/vc_column_text][/vc_column][/vc_row][vc_row][vc_column][vc_column_text css=”.vc_custom_1482946204865{padding-top: 10px !important;padding-right: 15px !important;padding-bottom: 10px !important;padding-left: 15px !important;background-color: #4a6a67 !important;}”]“it all comes down to communication between two individuals willing to communicate and compromise so their budget works for them. Pay off debt as quickly as possible. set up most bills for automatic deduction from your bank account. Put some money aside from each paycheck for savings. Work up to having and maintaining a six-month savings cushion. Check your credit score annually at www.annualcreditreport.com When your financial picture improves, tell each other how proud you are of your success. financial 
health is a lifelong journey. the more one practices fiscal discipline, the likelihood is it will become a habit. take a positive approach toward making your budget work for you. it really is worth it.
Jeff D. Gorsline, managing partner and financial advisor for evergreen Wealth Management, LLC, has over 17 years’ experience in financial planning and investment management for individuals, families, businesses, endowments and other institutions.”[/vc_column_text][/vc_column][/vc_row][vc_row][vc_column][vc_column_text]
EVERGREEN WEALTH MANAGEMENT, LLC
1288 West Grand River Avenue, Suite 104
Williamston, MI 48895
517-655-2118
www.investevergreen.com
jeff.gorsline@evergreenfg.com
Securities offered through Evergreen Wealth Management, LLC, a Registered Investment Advisor.
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