Developing a Spending Plan

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A budget or spending plan will help you manage your money and keep your family on the safe and most direct path to housing recovery. Managing your personal finances wisely is a critical step in achieving financial security. Money management is about choice ” choosing how to spend and save your money. Knowing what your income and expenses are every month will enable you to maintain a realistic view of your money and bills so you don't veer off course.

To create your spending plan, track all of your expenses for one month. Make a budget worksheet by writing down all of your expenses. Be sure to include periodic expenses like car insurance. Once you have filled in all of your budget expenses, compare your expenses with your income.

So Why Is Developing a Spending Plan Such a Big Deal?

  • Because it helps you take control of your financial situation.
  • Because it reduces the anxiety of not knowing whether you have enough money to pay your bills when they are due.
  • Because it gives you a sense of control over money, rather than letting money have control over you.
  • Because it enables you to build an emergency fund to cover you when the clouds start gathering.
  • Because it helps you build assets which will help improve the quality of life for you and your family.

Alert: Becoming Money Smart Interested in becoming Money Smart? If so, you'll want to check out the educational course called Money Smart provided by Federall Deposit Insurance Corporation (FDIC).

Money Smart will help you enhance your money skills and create positive relationships with financial service companies. The Money Smart course provides information about key topics, including:

  • Banking basics
  • Credit
  • Budgeting
  • Savings
  • Credit cards
  • Loans
  • Homeownership

Money Smart is available as a face-to-face training course or as a tool on the Web. To find out if there is a face-to-face Money Smart course available in your community, contact your FDIC Community Affairs Specialist by logging onto: http://www.fdic.gov/consumers. If you prefer to review the Money Smart course online, simply log onto http://www.fdic.gov/consumers. The online course allows you to review all of the topics or you can just focus on the topics that interest you the most.