A&FRC offers financial counseling to put Sabers on track for financial success Published Feb. 23, 2009 By Staff Sgt. Tammie Moore 52nd Fighter Wing Public Affairs Office SPANGDAHLEM AIR BASE, Germany -- The winter holiday season is long gone, yet some people are still reminded of the passing holidays by more than photos, new clothes hanging in their closets and toys laying on the living room floor. Each new credit card statement reminds some of overstepping their budgets during the holiday season. "The holidays are over, denial has kept many people from facing the inevitable," said Leroy Olson, Airman & Family Readiness Center personal financial readiness manager. "It's time to face the music." As Military Saves Week wraps up, the A&FRC financial experts remain available to help Sabers establish a plan of action to reach "Pledge to Save" goals of saving money, reducing debt and building wealth over time. Mr. Olson is someone who has pulled himself out of a bad financial situation. He believes talking with someone can help put a financial situation into perspective. "Unfortunately, many individuals are embarrassed to talk about their finances," he said. "But this is one of the best things they can do for their future. This is what helped my wife and me to get out of our consumer debt." Paying off debts and saving money to build an emergency fund can become a reality by creating a budget and following a few guidelines. "We have qualified Community Readiness Consultants/financial counselors who can direct and assist you in helping you develop a plan that can be used to help you get current again," said Shonte Gonzalez, A&FRC community readiness consultant. "Remember, catching up requires you to stick to the plan and it won't happen overnight." The first step in accessing financial standings Mr. Olson said, is to always open mail and read statements. He also encourages people to put their plastic aside and give it a rest. "One of the drawbacks of using your credit and debit cards is that they encourage you to spend more than you originally intended to," Mr. Olson said. "It's hurts more when you're giving up a Benjamin Franklin." Taking a shopping list to the store and only buying items on it can help control spending. Coupons can also save shoppers money. Those who still can't control their spending may want to consider applying "plastic surgery" and cut up or shred their credit cards. To begin striving toward a "Pledge to Save" goal Mr. Olson encourages people to set up savings allotments. "Make it automatic," Mr. Olson said. "The best way to do this is to have an allotment come directly out of your pay check. You can set up as many as six allotments. Remember, if you don't see it, you won't spend it." According the Military Saves January newsletter columnist, Wendy Christiansen, "Your initial goal should be to save $500 to 1000 in your emergency fund. Then when something unexpected comes up, like your car breaking down, you can get it fixed without adding to credit card debt. Eventually, you will want three to six months worth of expenses. This will help you to be prepared should anything more drastic happen." After establishing a plan, it is important to contact creditors and let them know your plans for becoming current. "If it took you three years to get in the mess (debt), it will more than likely take just as long to get out," Mr. Olson said. To avoid financial bondage Mr. Olson recommends following these simple rules. 1. Set up a spending plan/budget. Most individuals know how much they have coming in; however, most have no clue where it goes. For a set period of time, track expenses. 2. Before taking on debt/new monthly payment, see if you can afford the payment by making several consecutive payments, usually three months in a row, to a savings account. This will give a concise picture of whether it is a reasonable expense. 3. Before borrowing make sure that credit report information is accurate. Typically one in four credit reports has errors. It's everyone's responsibility to make sure that this accurate. This could drastically affect an interest rate. The A&FRC is open from 8 a.m. to 4 p.m. Monday through Friday. To make an appointment for a one-on-one financial assessment, call 452-6422. The Military Saves Week Web site, www.militarysaves.org provides links to success stories, online financial resources and an electronic Saver Pledge form. (Editor's note: This is part two of a two part series about managing finances.)