September is Self-Improvement Month

September 22, 2004 -- Improving your financial outlook is great self-improvement. Developing the skills and mastering the behaviors necessary to improve your financial outlook are a definite effort toward self-improvement and requires SMART goals: Specific, Measurable, Achievable, Realistic, and Timely. Credit Advisors Foundation offers these tips in achieving this worthy goal.

First, get your budget in gear! Is your budget working for you? Do you know what you have coming in and going out each month? 87% of Americans earning near $30,000 live paycheck to paycheck with nothing left for savings or emergencies. The saving rate of Americans has decreased to 2% of after-tax income. Budgeting could improve spending habits, reduce expenses, and allow for increased savings.

Next, eliminate waste. What are you spending money on that is truly unnecessary or is not helping you achieve your goals? If something in your budget is not working toward your goals, eliminate it! The Federal Reserve reports 43% of U.S. families spend more than they earn. It is imperative to eliminate those expenditures and limit debt.

Now, make every effort to decrease your debt. Americans spend 18.1% of their after-tax income to cover debts. It is best to avoid the build-up of debt on credit cards, use care when increasing your mortgage debt, and limit student loan debt. These debts can create financial problems if you should have to face one of life’s financial setbacks like illness, divorce, income reduction, or job loss. The best rule of thumb: never get in debt just because you can (pre-approved offer) and never access more credit than you absolutely must.

Finally, consider creating a savings plan for emergencies. 43% of Americans have less than $1000 saved in the case of an emergency. 66% of all American households would not survive more than three months of unemployment without serious financial difficulty, and the average length of unemployment is eight months. Experts at Harvard say medical bills are a factor in 1 of every 5 bankruptcies filed nationwide which have increased 100% in 10 years. It is recommended families have cash equal to three months worth of expenses, preferably six, for emergency situations

Celebrate September as Self-Improvement Month. Review your financial outlook, update your financial goals, and set your sights on improving your financial future.