Money Problems & Family Stress
10 Tips to Getting Finances Under Control

According to a recent survey, four people out of ten say money problems are the biggest source of family arguments.  Here are some commonsense tips to improve your financial health and keep you and your family happier.

1. Reduce Credit Card Debt.  The average level of credit card debt per card holder is thousands of dollars.  High interest rates compound the problem.  If you have debt, you are not alone.

2. Don't Let Debt Get You Down.  If you are pressured by financial problems, seek help.  Your EAP can help you get spending under control, develop a budget and guide you to appropriate community resources to help reduce existing debt.

3. Make a Budget.  Planning ahead is the best way to manage your money.  On a sheet of paper, write types of monthly expenses across the top, such as food, rent or mortgage, utilities, insurance payments, daycare, clothing, medical, leisure, loan payments - and don't forget savings!  Under each type, write how much of your monthly income you can allot for each.  Keep track of your spending in each category against what you budgeted.  Check in the balance before you make a new purchase.  If you don't have enough money for that new gadget, wait until you do.

4. Pay Off Loans.  If you have a lot of debts, pay off the ones with the highest interest rates first.  They are the most expensive.

5. Minimum Means Maximum.  Bank loans and credit card companies offer minimum payments.  If you only pay the minimum payment, you are paying the maximum amount of money for it.

6. Borrow from the Best.  If you must borrow money, research the financial institution that offers the lowest interest rates.  Consolidate several high interest loans into one low interest loan.

7. Good Debt.  Debt can be good if you are borrowing to pay for something that will likely increase in value, such as real estate of a home.

8. Credit Cards Can Work For You.  Credit cards are convenient and can work for you as long as you keep spending within your allotted budget and you pay off the balance every month.  Find a card that has the lowest or no annual rate and offers frequent flyer points for an airline that you are likely to use.

9. Save for the Unexpected.  We all get hit with unexpected expenses.  Always keep money in reserve so you don't have to borrow money to get the car fixed.

10. Reward Yourself for Good Financial Management.  If you saved for something big, like a vacation, reward yourself with the vacation and enjoy every minute of it.  Make sure you save for short-term rewards, like a special meal or outing.

NOTE:  LMA EAP counselors are not financial advisors.  We may help you learn new behaviors that will result in responsible money management.

Reference:  Quicken Survey, 2000;  Stresstips.com/debt

Holly Gardener Socolow, MHS, CEAP, is Manager of Employee Assistance Services for Life Management Asscociates.