8 Ways to Recover from a Financial Setback

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From big emergencies to minor setbacks, learning how to deal with money crises is a key aspect of healthy financial management. Losses are a part of life, and while planning and preparing for them can help, you can’t always stop fiscal setbacks from occurring.

When faced with financial hardship, individuals need to adapt their money plans to deal with present challenges. After all, your normal fiscal approach isn’t going to work when times are tough. Here are eight tips designed to help limit the damage of financial problems and get you and your money back on track.

1. Calm Emotions and Stay Smart.

The stress that results from financial setbacks can lead individuals to make foolish mistakes with regard to money.

“Setbacks often leave us reeling, since they’re often unexpected and can involve high emotion, and when emotion goes up… intelligence goes down,” said Robert T. Kiyosaki, author of No. 1 personal finance book, “Rich Dad Poor Dad.” Kiyosaki went on to advise people to stay rational about the choices ahead.

According to Kiyosaki, a financial crisis represents an opportunity to learn more about money and improve your financial habits.

“Financial education and getting smarter with your money is always a great way to prepare for the future — whatever it holds, good and bad — and hedge against all the unexpected speed bumps (and potholes, and road black and detours) on the road to financial freedom,” Kiyosaki said.

2. Adopt a Problem-Solving Mentality.

When faced with financial hardship, savvy individuals face their problems head on.

Kyle Taylor, founder of the popular personal finance blog, ThePennyHoarder.com, said, “When going through a financial setback, it’s important to develop a problem-solver mentality. After all, setbacks are merely a setup for a comeback.”

While money problems might seem insurmountable, it’s important to look for ways to address financial issues proactively.

“Regroup and re-strategize when things go awry,” said Taylor. “You may need to adjust your budget and figure out additional income streams.”

3. Make a Plan.

While adopting a positive, forward-thinking attitude is essential, individuals must also create specific plans to deal with their new circumstances.

“We all have financial setbacks, but it’s how we handle these setbacks that often separates those who win with money from those who don’t,” said Chris Hogan, a retirement expert with the Dave Ramsey team. “Create a plan to help you overcome the obstacle, whether it’s a job loss, costly emergency or simply regretting a large purchase.”

When crafting your plan, one of the aims is to modify your spending behavior and use the extra money to tackle your financial setback.

“That may mean cutting back on your expenses until you’re able to build your emergency fund back up, or you may need to start budgeting so you can avoid overspending,” Hogan said. “Remember, your past doesn’t determine your financial future.”

Everyone has the power to change fiscal habits and do better moving forward.

4. Get a Money Mentor.

When you’re in the middle of a monetary crisis, it can feel like there’s no way out. To combat feelings of hopelessness, money experts recommend seeking out people who have been in situations like yours (or worse ones!) and determining how they dug themselves out of the hole.

“Get a mentor/coach to help… someone that has been there,” said Josh Felber, an entrepreneur and business coach.

This person can provide individualized advice about how to improve your situation, give you encouragement when you’re feeling down and keep you accountable to ensure you stay on track.

Here at First Financial, our first priority is helping you achieve your financial dreams by defining your dream goals and lifestyle, empowering you through financial education, building your wealth, planning your retirement, and managing your risk. Establishing financial goals is an important part of saving enough money, and being ready for the future and we are here for you! Stop into any one of our branches and sit with a representative to have an annual financial check-up for a review of your finances and portfolio. 

5. Start Saving Right Away.

While finances might be tight right now, that doesn’t mean you should abandon important money habits like saving. Even in the midst of a financial crisis, business experts like Whitney Johnson recommend that saving habits be maintained.

According to the author of the bestselling book, “Disrupt Yourself: Putting the Power of Disruptive Innovation to Work,” individuals should strive to save each month, “no matter how small the amount … even before you think you can.”

The truth is, you can’t afford not to save, especially while your finances are still recovering.

6. Give Yourself a Raise.

If you need to secure some extra money to tackle a big financial issue, you might be able to find it by lowering your expenses.

“Remember that you have the power to give yourself a raise,” said Jeanette Pavini, money expert and spokesperson for Coupons.com. Here’s what she means: “Spending less can be like making more.”

According to Pavini, individuals might also need to sacrifice extra luxuries while recovering from a financial setback.

“Get rid of the $150 a month cable bill, and it’s like giving yourself an $1,800 after-tax raise,” Pavini said, adding that financial stress can be detrimental to mental health and overall wellness. However, she suggested that simplifying one’s life can have positive consequences as well.

Said Pavini, “You may even find that when you simplify and learn to live without, your life becomes rich in so many other ways.”

7. Keep Your Credit On Track.

While a financial crisis can feel overwhelming, money experts recommend keeping credit ratings on track. Clark Howard, host of the nationally syndicated radio program, “The Clark Howard Show,” advised consumers to keep an eye on their credit scores during financial setbacks and take steps to improve them.

Howard says, “If you’re suffering from poor credit, there are several surefire ways to get your credit healthy again.” He recommends that individuals take the following steps to start:

  1. “Always pay your bills on time and pay down the total amount you owe. If you forget all else after reading this, remember this one! This is the single most important rule for having a good credit score.”
  2. “Keep a low credit utilization rate.” This means keeping credit card balances low and resisting the urge to charge more to accounts.
  3. “When you pay off a credit card, don’t close the account. Doing so only reduces your available credit and drives your score down.” He also recommends keeping four to six lines of credit open, using each twice a year and paying them off right away. “That will keep them active in your credit mix.”

8. Target Credit Card Debt.

Paying off credit card debt is a key part of recovering from financial hardship. Bestselling Finance Author, Nicole Lapin, notes that charging purchases is all too easy and cautions individuals against getting behind on debt.

After factoring in interest, Lapin said, “you may end up paying $50 for a pair of socks before you’re through paying off your cards.” With that in mind, she advises individuals to “double-time” their credit card debt and strive to pay off balances monthly. Lapin went on to acknowledge that people in the midst of a financial setback might not be in the position to pay off credit card debt immediately.

“Instead, try to curb enough of your other expenses (take from your ‘fun money’ category first) to double-down on your payments each month,” said Lapin.

The money expert also recommended that those with debt get an early start on their taxes and use any refund checks to pay down credit card bills. Not anticipating a refund this year? If you racked up credit card debt with too many purchases, you can always put your loot to use in paying off the balance.

“Pull out the clothes, appliances and household items that you haven’t used in a while, or don’t want anymore,” Lapin said. “You can auction them off on eBay, or post them on your local Craigslist, and then use this ‘free-money’ to pay down debt.”

Financial setbacks are inevitable, but you don’t have to stay in debt long term. By following the expert tips above, you can get back on the road to fiscal health.

6 Ways You Can Save More Money

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Save-Save-SaveDid you close out last year with a little less in your bank account than you would’ve liked? If you’re like a lot of people, you might be disappointed in how much you managed to set aside.

Saving more was the biggest financial priority for 29% of young people, as revealed in a recent survey by Bankrate. The only money issue millennials were more concerned about was paying bills.

Knowing you need to save more and being able to do it are two different things, however. How can you set aside more money when you’re stretched thin as it is? Thankfully, saving a little extra each month isn’t as hard as it may seem. Here are a few suggestions.

1. Pay yourself first. One of the hardest parts of saving money is doing it consistently. You can make it easier on yourself by automating the process.

“Pay yourself first by setting up automatic savings through payroll deduction in your work retirement plan or through automatic transfers through your bank account,” Antonio Morello, the chief investment officer at McMahon Financial Advisors, said. Aim to save 10% to 15% of your salary every year, including contributions to your retirement plan. As an added bonus, those deductible retirement contributions will also save you money come tax time.

2. Spend less on food. Frequent delivery orders and dinners out with friends add up quickly. Save yourself some money by being smarter about how you eat.

“Plan your meals for the week to avoid last minute take-out orders,” Willie Schuette, a financial coach with The JL Smith Group, said. You can also save by buying in bulk and saving leftovers for later rather than tossing them in the trash, Schuette suggested.

3. Cancel subscriptions you don’t use. Do you have a gym membership you barely use or a monthly box subscription you don’t really need? Cancel those recurring charges and funnel the extra money into your savings or to pay down debt. You could end up with a few hundred extra dollars in your pocket at the end of the year.

Have trouble keeping track of which subscriptions you’ve signed up for? There’s an app to help you out. Trim will comb through your credit card statements and bank accounts, find the recurring payments, and ask if you want to cancel the service. It’s free to use, though there’s currently a waiting list.

4. Donate to charity. “Donating to charity is a great way to boost your deductions while helping others,” said Don Chamberlin, a Saint-Louis-based financial advisor and president of The Chamberlin Group.

Donations can come in the form of cash, stock, and even big-ticket items like cars, but you’ll need to itemize and keep accurate records to get the tax breaks.

5. Keep an eye on your credit. Don’t pay more than you have to the next time you need to borrow cash. Maintaining a good credit score “can save you money when it comes to buying a car or anything else on credit, car insurance, or buying a home,” Herb White, a financial planner and president of Life Certain Wealth Strategies, said.

Credit scores above 700 show lenders that you do a good job of managing the money you borrow, according to Experian. You can boost you credit score by paying bills on time, not running up balances on your credit cards, and reducing your debt.

6. Check your withholding. A big tax refund sounds pretty awesome. That is, until you realize that the government is really just paying back the interest-free loan you gave them.

“If you got a big tax refund it means you are having too much taken out of your paycheck every pay period,” Schuette said. File a new W-4 with your employer so that you get more of your money when you actually earn it. Then, shift that extra cash to savings or use it to meet another financial goal.

How to Save Money Even When It Feels Impossible

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When living paycheck to paycheck, it’s hard to set aside any money at all, let alone start saving substantially for things like retirement and emergencies. You get a paycheck, you immediately use it for rent, student loan payments, utilities and more, and all of a sudden you’re left with just barely enough to get by. So how can you even think about saving?

Well, the truth is, you can and you should, because the last thing you want is to be stuck with an emergency room bill or totaled car and have absolutely no money. In fact, most financial experts agree that everyone should have at least $1,000 in savings for those types of financial emergencies. To that end, here’s how to save money– even when it feels impossible:

Get in the Right Mindset.

Saving money is more than just a habitual practice– it’s a mindset.  Like starting a new workout regimen, saving money must be a lifestyle you’re completely committed to in order to be effective. So, the first step to saving money is making the decision to do so. That way, when you’re enticed by that sale at the mall or a nice dinner, you’ll have a clearly defined reason to say “no.”

Start Small – Very Small.

Saving money doesn’t have to mean putting 10% of every paycheck away. You’ve likely heard it before, but every dollar counts. At first, save more like 2% or even just $20 per month. OK, maybe that won’t make you rich as fast as saving a more substantial amount, but the important thing is it’s a start. For weeks or months that you don’t spend quite as much, put a bit more in savings than you normally do. Just commit to saving something,no matter how small the amount.

Make it Automatic.

When many people first start learning how to save money, they find it’s easiest when it isn’t a conscious decision. In other words, if you have your bank automatically transfer money into your savings account every time a paycheck is deposited, you won’t even see that money for long enough to consider spending it. If auto-transfers make you feel a bit out of control, take on that responsibility yourself.

Deny Yourself Access.

One of the hardest parts about saving money is seeing it accrue and knowing you could use it if you wanted to. If that sounds like a feeling you’re familiar with, do yourself a favor by setting up an account that’s a bit harder to access. For instance, ask your bank if they can add an account that can only be accessed by physically walking into a bank to make a withdrawal or using an ATM card. If you don’t have a debit card attached to it, you’ll be less likely to swipe first and regret later.

Keep Careful Track of Your Spending.

It goes without saying, but how much you spend has a direct impact on how much you’ll be able to save. If you know you have some spending problem areas (like eating out a lot or buying an unnecessary amount of upscale sneakers), focus on reducing those however you can. The best way to spend less (and save more) is to know where every dollar is going– then you can pull back in certain areas. If you can’t do this without a bit of help, try using budgeting apps like Mint or Mvelopes to track your spending and come up with a financial plan.

Cut a Few Expenses (At Least for Now).

As you start keeping better track of your spending, look for certain regular expenses that you may be able to do away with completely. Are you still paying for cable that you rarely watch, a magazine subscription that goes unread more often than not, or a gym membership you could replace with free workouts in your apartment? Get creative, and know that you don’t have to give these things up forever. Even just cancelling for a few months can allow you some wiggle room to save more money faster.

You can also look at refinancing options for certain expenses, like car payments and student loans. See if you can spend less each month on those- at least for now while you’re working on building a savings account.

Find Ways to Earn More.

If you have some extra time on your schedule (even if you work a 9-to-5 office job it’s likely that you do), consider finding ways to earn some more money each month. Pick up dog walking or babysitting gigs, or even do some freelance work on the side. This is beneficial for two reasons: One, you’ll be making more money. And two, you may find yourself spending a bit less if you’re, say, babysitting on a Friday night instead of going out.

If you’re trying to figure out how to save money, remember: It’s doable, you just have to be committed, organized, and focused on an end goal. You can do it!

*Original article source courtesy of Forbes.com.

10 Ways to Bounce Back After Holiday Spending

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holiday_spendingIf you’re waking up with a holiday spending hangover, you’re not alone. According to the Experian Holiday Shopping Survey, 60 percent of adults say holiday shopping puts a big strain on their finances.

“We have Black Friday, then dark January,” said Rod Griffin, director of public education at Experian. Consumers tend to find themselves trying to dig themselves out of debt and get back on track financially in the new year. This is typically because they spend more than they expect to during the holidays and use credit to fund their shopping.

If you exceeded your holiday shopping budget, racked up debt and depleted your savings, you can bounce back. Here are 10 steps you can take to get your finances back in shape in the new year.

1. Review Your Holiday Spending.

The first step you should take after the holidays is to review all of your spending, said Bruce McClary, spokesperson for the National Foundation for Credit Counseling. Look at how much you charged to credit cards, how much you spent from savings and the categories you were spending on — such as gifts, food and entertainment. “It gives you a good starting point to get out of debt and rebuild savings,” McClary said.

2. Make a Plan to Tackle Debt.

Plenty of consumers will be digging out of debt in the new year. Those surveyed by Experian expected to charge about a quarter of their holiday spending to a credit card. To quickly eliminate that debt, you need a plan.

“The worst thing you can ever do is plan to pay the minimum payments,” said McClary. “That debt may be around for the next holiday season, and may be in the way of planned purchases and activities.”

Ideally, you should aim to pay off your credit card balance in one to two months, he said. If you owe money on more than one credit card, he recommended using one of these two strategies: tackling the smallest balance first or paying off the card with the highest interest rate. “The process that is most motivating is the one that you should go with,” said McClary.

You might need to tighten your belt to wipe out your debt quickly. “Look at everyday spending to find ways to cut back to contribute more to debt repayment,” said Bethy Hardeman, chief consumer advocate at Credit Karma. You can also put yourself on a cash-only diet so you don’t rack up more debt as you’re trying to pay it off.

3. Put Extra Cash Toward It.

In addition to cutting back, look for ways to generate more cash in the new year to pay off your debt, or to rebuild savings you might have tapped to cover holiday spending.

If you loaded up on gifts this holiday season, you can make room for your new things by selling some older items online, said Farnoosh Torabi, a personal finance expert and Chase Slate financial education partner. “This will not only help declutter your space, but you can earn some extra cash to help pay down that December credit card balance.”

You can sell clothing and accessories at sites such as Thredup.com and Tradesy.com, which get a commission for reselling your items. Or you could try listing items for sale on Craigslist, or download the Poshmark app to your mobile phone.

4. Set up Automated Payments.

Nearly a quarter of adults surveyed by Experian said they’ve paid holiday shopping credit card charges late. Not only will you get hit with fees if you pay your credit card bills late, but your credit score will take a hit, according to the NFCC.

Torabi said you can avoid making late payments by setting up automated payments through your bank or card issuer.

If you plan to skip a payment because you can’t afford to pay your bill, McClary said you should call your credit card company first to see what remedies you can find together while your account is in good standing. “If you have good credit, there are plenty of options to give yourself some breathing room so your credit score doesn’t take a hit,” he said.

5. Transfer Balances.

Here’s an easy money tip to follow: If you have good credit, lower the cost of your holiday debt by transferring balances to a low-rate card.

Be sure you read the fine print, though, before accepting a balance transfer offer. Most balance transfer cards have waived interest, which means you’ll pay interest only on any remaining balances that haven’t been paid off at the end of the introductory period.

Transfer your high balance from holiday shopping to First Financial’s Visa Platinum Cash Plus Credit Card today!* Enjoy great low rates, no annual fees, and a 10-day grace period.** 

6. Develop a Support Network.

You won’t be the only one needing help getting your finances back on track after the holidays, Torabi said. So team up with someone else in a similar position to share your goals and keep each other accountable. “Hitting the reset button on your finances is more manageable and fun with the help of a friend,” she said.

Some people even create bill-paying clubs — similar to book clubs — to get together with others in debt to talk about the progress they’re making and offer support to one another, Griffin said.

7. Seek Professional Help.

If you’re really struggling to pay off the debt you owe, or need help getting your finances back on track, get advice from a professional. “Don’t be afraid to seek help,” Griffin said. It won’t affect your credit score or credit history, but it can help you manage debt, he said.

Also consider meeting with a financial representative if you tapped savings that were earmarked for things other than holiday spending. “If you’re raiding your short-term emergency savings or long-term retirement savings, there’s a bigger issue about priorities,” McClary said.

Here at First Financial, our first priority is helping you achieve your financial dreams by defining your dream goals and lifestyle, empowering you through financial education, building your wealth, planning your retirement, and managing your risk. Establishing financial goals is an important part of saving enough money, and being ready for the future and we are here for you! Stop into any one of our branches and sit with a representative to have a complimentary annual financial check-up for a review of your finances to get you back on track. 

8. Avoid Quick Fixes.

Even if your debt seems overwhelming, you should avoid companies that promise to help you settle debts for pennies on the dollar of what you owe. “It’s very tempting, but it’s also probably illegal,” Griffin said.

Debt-settlement firms might charge an upfront fee before providing any services. But Griffin said that firms promising credit repair have to fulfill the terms of their offer before taking any money.

9. Monitor Your Credit.

Holiday shopping has negatively affected the credit scores of 10 percent of consumers, according to the Experian survey. So it’s important to see where you stand by reviewing your credit report. Griffin said your score should include risk factors that are affecting your score and what areas you should focus on to help build your credit.

Another reason to monitor your credit report and your credit accounts closely after the holidays is to look for signs of fraud. If you see any unauthorized charges on your statement, contact your credit card issuer immediately to cancel your card and dispute the charges. Check your credit report for accounts you don’t recognize, which could be a sign that someone has used your identity to get credit in your name.

10. Start Saving for Next Year.

Help yourself avoid a holiday debt hangover next year by saving money throughout the year. Add up all of your holiday spending, and divide that total by 10 to determine how much you should set aside each month from January to October. That can help you save enough for when the holiday shopping season starts in November, McClary said.

If that monthly amount is too high, create a strategy to have a more affordable holiday season next year, he said. As you follow these steps to bounce back, try to stay positive.

“Patience is key — don’t get discouraged,” McClary

*APR varies up to 18% for purchases, when you open your account based on your credit worthiness. The APR is 18% APR for balance transfers and cash advances. APRs will vary with the market based on the Prime Rate. Subject to credit approval. Rates quoted assume excellent borrower credit history. Your actual APR may vary based on your state of residence, approved loan amount, applicable discounts and your credit history. No Annual Fee. Other fees that apply: Cash advance fee of $10 or 3% of the total cash advance amount—whichever is greater (no maximum), Balance transfer fee of $10 or 3% of the balance—whichever is greater (no maximum), Late Payment Fee of $29, $10 Card Replacement Fee, and Returned Payment Fee of $29. A First Financial membership is required to obtain a Visa® Credit Card and is available to anyone who lives, works, worships, or attends school in Monmouth or Ocean Counties.

**No late fee will be charged if payment is received within 10 days from the payment due date.

 

First Financial Foundation Awards Classroom Grant to Cathy Heuser of Lanes Mill Elementary School

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L to R: Cathy Heuser, EXCEL Teacher and Theresa Goodfellow, Assistant Vice Principal at Lanes Mill Elementary School in Brick, NJ

WALL, N.J. – Lanes Mill Elementary School EXCEL teacher, Cathy Heuser, was surprised by members of the First Financial Foundation with a $500 classroom grant for the 2015-2016 school year.

Mrs. Heuser submitted a grant application to purchase materials to help with environmental projects in the Science, Technology, Engineering and Mathematics (S.T.E.M) classroom in her school in Brick, NJ. This would allow her to buy advanced wind experiment kits, sensors, batteries, and circuit kits so students would be able to use the gathered information about gear ratios, generators, polarity, and vertical axis to create alternate designs for wind turbines.

“With the speed of technology growing exponentially, the students of today are likely preparing for jobs and careers that do not yet exist. Therefore, it is imperative that educators take on the role of the facilitator; guiding students to develop their skills to think critically, use logical reasoning, problem solving, working cooperatively and communicating,” said Heuser. “It is my intention to use the award to help my students realize their personal strengths and use those strengths to teach them how to be lifelong learners. By investing in the S.T.E.M. classroom today, we are investing in our students’ future.”

Since First Financial began with a group of Asbury Park schoolteachers back in 1936, the credit union has not forgotten its educational roots. That is why its Foundation offered current Monmouth and Ocean County educators six (6) classroom grants to use at their schools for the 2015-2016 school year.

“Education has and always will be a pivotal piece of our organization, and we’re delighted to be able to help our local educators enhance their classroom experience,” noted First Financial President & CEO, Issa Stephan.

Stephan also noted that the Foundation committee had a tough job of choosing just six winning teachers out of the numerous applications received this year. “We received dozens of heartening essays from educators hoping to use the grant money to implement or maintain a variety of creative programs in their schools such as purchasing basic skills materials for struggling students, funding a thanksgiving feast for the less fortunate, integrating digital voice recorders for students to practice second languages, new tables for a classroom, iPads, updated software, and pencil grips for students in pre-K through 2nd grade – to name a few,” said Stephan. “We wish we were able to reward each and every one of our participants, and after extremely careful consideration we selected the six classrooms in which we felt the grant money would have the largest impact.”

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About the First Financial Foundation: Since 1994, First Financial has supported the Monmouth & Ocean communities with the Erma Dorrer Scholarship Program. Today, that program has been extended into the First Financial Foundation to assist charitable organizations of the Monmouth & Ocean County Communities.  The First Financial Federal Credit Union Foundation is a non-profit working to support a variety of community programs and organizations throughout Monmouth and Ocean Counties.  We direct 100% of your contributions to programs because all administrative expenses are paid for by First Financial Federal Credit Union.  To learn more, visit www.firstffcu.com.

Top 5 Budgeting Mistakes — And How To Avoid Them

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January is the number one month when people launch new financial regimes, and nearly a third of respondents according to a GoBankingRate survey, said their 2016 goals include “saving more and spending less.”

All sounds great, says Lauren Greutman, a budgeting expert who blogs at IAmThatLady.com, where she walks you through how to up a successful budget, stick to it, and become debt-free. “Many people start off the new year excited about a budget, but quickly fall off the wagon, only to feel defeated,” says Greutman.

Budgeting doesn’t have to be stressful. Know the likely pitfalls, and how to avoid them. 5 budgeting mistakes (and how to avoid them):

1. Fail a set budget.

“Feeling overwhelmed by the time it takes to track expenses and set a budget is one of the main reasons why people don’t do it,” Greutman says. By carving out a chunk of time, you will save yourself money and time throughout the month. “For every 1 hour of planning, you save yourself 4 hours of execution,” Gretuman says.

Do this instead: At the beginning of next month, collect all your expenses and income. Understand exactly where your money comes from, where it goes, and commit to what you will save and cut back on. “Instead of spending your time throughout the month tracking where you spend your money, make a money plan for the upcoming month, and just follow the plan. It saves so much time and energy,” she says.

2. Create the exact same budget every month.

Setting a budget that looks the same every single month is a big budget mistake, since expenses differ depending on holidays, birthdays, vacation time, energy costs during warmer or cooler months, taxes, and home or car repairs.

Do this instead: To avoid breaking your budget, plan each month out one at a time at the start of the month.

3. Don’t allow for wiggle room.

Making your budget too rigid is something most people do, but then something comes up unexpected and the entire budget falls apart.

Do this instead: “Give yourself some play money every month – it can be as little as $10 or as much as you can afford,” Greutman says. ”This helps you keep the budget on task, keeps your budget successful for that month, and helps maintain motivation.”

4. Rely on credit cards.

If you are using a bucket budgeting system — a set sum of money for food, clothing, entertainment, transportation — tracking expenses can make book keeping more complicated, since combing through statements adds another layer of work. Plus, reliance on credit cards means you run the risk of over-spending and racking up debt.

Do this instead: Switch to a cash-only budget for the first month of your new budget, then you can visually see where your money is going.

5. Quit too soon.

Successful budgeting takes a few months of tweaking and practice. In our culture of instant gratification, people want to the budget to be perfect the first time. In reality, it takes a few months of tweaking, messing up, and readjusting for the budget to be right and attainable.

Do this instead: Commit to lifelong budgeting, and understand that each family’s finances are a constant evolution as members needs, incomes and priorities change.

*Original article source courtesy of Emma Johnson of Forbes.com.