Managing During Tough Managing During Tough TimesTimes

So, are we in a recession? What does this So, are we in a recession? What does this mean? mean?

Rising gas prices and other prices going up tooRising gas prices and other prices going up too

Home values droppingHome values dropping

Layoffs and limited job opportunities Layoffs and limited job opportunities

People are more in debt than ever beforePeople are more in debt than ever before– Home equity – being upside down in mortgagesHome equity – being upside down in mortgages– Average credit card balance approaching $9,000Average credit card balance approaching $9,000

Income stabilityIncome stability– How stable is your job? Your spouse’s job? How stable is your job? Your spouse’s job? – What other options would you have right now? What other options would you have right now?

Manage spendingManage spendingBe as cost efficient as possibleBe as cost efficient as possible– Maximize incomeMaximize income– Minimize expensesMinimize expenses

Wants vs. NeedsWants vs. NeedsKnow when to use existing assets or utilize Know when to use existing assets or utilize debtdebt

What is your net worth?What is your net worth?

Assets minus liabilities Assets minus liabilities – Determine assetsDetermine assets

CurrentCurrent

Limited accessLimited access

Real or personal propertyReal or personal property

– Determine liabilitiesDetermine liabilitiesImmediate (anything overdue)Immediate (anything overdue)

Short term Short term

Intermediate or Longer term assetsIntermediate or Longer term assets

Now think of all of the other assetsNow think of all of the other assets– Education, certifications Education, certifications – ExperienceExperience– People skillsPeople skills– Talents Talents – Contacts, connectionsContacts, connections

Consider using web networking such as LinkedInConsider using web networking such as LinkedIn

Family dialogue; maybe weekly meetings Family dialogue; maybe weekly meetings for nowfor now

Spending plan Spending plan 1.1. Determine monthly incomeDetermine monthly income

2.2. Determine fixed expensesDetermine fixed expenses

3.3. Determine flexible expensesDetermine flexible expenses

4.4. Adjust expenses based on #1Adjust expenses based on #1

Housing (consider water, electricity, etc.)Housing (consider water, electricity, etc.)

Food, some health care expensesFood, some health care expenses

Debt expenses – may need to discuss Debt expenses – may need to discuss payment options with lenderspayment options with lenders

EntertainmentEntertainment– Time to get creativeTime to get creative

What other options are there?What other options are there?

Take advantage of local public resources:Take advantage of local public resources:– Spend time together at the parkSpend time together at the park– Go for hikes or bike rides Go for hikes or bike rides – Go for a family picnicGo for a family picnic– Go swimming at the local pool, lake, ocean or Go swimming at the local pool, lake, ocean or

springs springs – Take advantage of free programs offered by the Take advantage of free programs offered by the

library, museums, and community bands or library, museums, and community bands or orchestras, etc.orchestras, etc.

– Check out books, music and videos for free from the Check out books, music and videos for free from the librarylibrary

Find cheaper entertainment at home:Find cheaper entertainment at home:– Have a family game nightHave a family game night– Rent or borrow movies, pop some popcorn, Rent or borrow movies, pop some popcorn,

and have a family movie night at homeand have a family movie night at home– Bake or cook together as a familyBake or cook together as a family– Read stories to one another Read stories to one another – Go on evening walks together Go on evening walks together

Help your children learn new skills Help your children learn new skills and ideas:and ideas:– Teach children how to gardenTeach children how to garden– Teach children craft skills you enjoy and Teach children craft skills you enjoy and

spend time doing these togetherspend time doing these together– Teach children about issues that are Teach children about issues that are

important to you, such as politics, news, the important to you, such as politics, news, the environment, etc.environment, etc.

Drive more efficientlyDrive more efficiently– Speed limitsSpeed limits– Lower weightLower weight– Avoid excess idlingAvoid excess idling– Use cruise control (unless there are a lot of hills)Use cruise control (unless there are a lot of hills)

Keep your car in shapeKeep your car in shape

Plan & combine tripsPlan & combine trips

Choose a more efficient vehicleChoose a more efficient vehicle

For more tips check out www.fueleconomy.govFor more tips check out www.fueleconomy.gov

Track expenses for 1 monthTrack expenses for 1 month– Need for everyone in family to participateNeed for everyone in family to participate

Determine income Determine income – From all sourcesFrom all sources

Determine expenses Determine expenses – Use spending diaryUse spending diary– Distinguish betweenDistinguish between

Fixed Fixed Variable Variable Optional or discretionary Optional or discretionary

Income – taxes – withholdings – expenses = Income – taxes – withholdings – expenses = Surplus or deficitSurplus or deficit

Emergency or Rainy-day fundEmergency or Rainy-day fund– Goal is to have 3-6 months of needed or Goal is to have 3-6 months of needed or

required expenses in a liquid account (savings, required expenses in a liquid account (savings, checking, money market or short-term CDs)checking, money market or short-term CDs)

– How much should you have?How much should you have?

What other resources might you have?What other resources might you have?– Credit?Credit?– Family? Family? – Investments? Investments?

What is your access to health care? What is your access to health care?

Disability insuranceDisability insurance

Life insurance Life insurance

Since others are concerned too, it is Since others are concerned too, it is important to protect what you haveimportant to protect what you have– Auto InsuranceAuto Insurance– Homeowner’s or Renter’s InsuranceHomeowner’s or Renter’s Insurance

Try to find healthy ways to deal with stress Try to find healthy ways to deal with stress if you or others in your family are feeling if you or others in your family are feeling stressed by all of thisstressed by all of this

Explore various techniques (e.g. breathing, Explore various techniques (e.g. breathing, exercise, talking with others) exercise, talking with others)

Find support person or personsFind support person or persons

Remind yourself of all of your positive Remind yourself of all of your positive attributes, things you will have going for attributes, things you will have going for you – going forward to the next thingyou – going forward to the next thing

Kids may be trying to understand why Kids may be trying to understand why you are sad, angry, short-tempered (if you are sad, angry, short-tempered (if you are)you are)

Kids want to help; this can be good for Kids want to help; this can be good for them on so many levelsthem on so many levels– They might want to earn some money for They might want to earn some money for

their own expenses (If old enough) their own expenses (If old enough) – Learn about wants versus needsLearn about wants versus needs– Learn how to be savers or be frugalLearn how to be savers or be frugal

As critical now as everAs critical now as ever

Helping to keep children aware so they Helping to keep children aware so they understand why things may be changing understand why things may be changing

Until things even out, it may be good to Until things even out, it may be good to have regular family discussionshave regular family discussions

Is there a need for more income? If so, Is there a need for more income? If so, what are the realistic sources of this?what are the realistic sources of this?– Someone working part-time, going to full-time, Someone working part-time, going to full-time,

second jobs, etc.second jobs, etc.

Decide on who will carry out day to day Decide on who will carry out day to day money chores.money chores.

Each person keep money of their own.Each person keep money of their own.

When disagreements occur, give each When disagreements occur, give each other VETO power over any decision to other VETO power over any decision to borrow.borrow.

Learn to manage disagreements.Learn to manage disagreements.

Use “I” statements.Use “I” statements.

Schedule weekly meetings at a quiet, convenient time Schedule weekly meetings at a quiet, convenient time when you will be alert and undisturbed. Sometimes, when you will be alert and undisturbed. Sometimes, people schedule their money meetings just before they people schedule their money meetings just before they get paidget paid

Have your meeting in pleasant surroundings. Have your meeting in pleasant surroundings.

Have on hand the tools and paperwork you need — Have on hand the tools and paperwork you need — spending and money management plans, bills, pencil, spending and money management plans, bills, pencil, eraser, calculator, checkbook, phone, and your eraser, calculator, checkbook, phone, and your computer if you use it for your finances.computer if you use it for your finances.

Limit your meetings to an hour or less, to keep them Limit your meetings to an hour or less, to keep them manageable and do-able. manageable and do-able.

During your money meeting, you can do a During your money meeting, you can do a variety of tasks:variety of tasks:– Pay bills.Pay bills.– Balance your checkbook.Balance your checkbook.– Plan and review — Work on your spending Plan and review — Work on your spending

plan and debt repayment strategies.plan and debt repayment strategies.– List or review your goals.List or review your goals.

Finish money meetings with a treat. Reward Finish money meetings with a treat. Reward yourself with something you enjoy that does not yourself with something you enjoy that does not hurt you financially. hurt you financially.

http://okaloosasaves.orghttp://solutionsforyourlife.comhttp://okaloosa.ifas.ufl.edu 850-689-5850 or 797-4902850-689-5850 or 797-4902