January - Week 3 - Cleaning Out The Clutter - Time To Organize Our Finances!!!

Proud Homeowner!!! 4 Bedrooms, 2 1/2 Baths, New Construction, 3.5% 30 Year Fixed Interest Rate
Please visit www.naca.com to learn more information
about the program that made my dream of homeownership come true!!!


I don't know about you, but one of the least enjoyable activities of my day to day routine is sitting down and going through the bills! I would almost rather do anything than to sort through the assortment of utility, car, educational, and other expenses that demand my attention. The reason that this task proves to be challenging is because often times from month to month I find myself trying to figure out how my means will meet the needs. One thing that I have learned over the years is that you can run, but you can't hide from financial responsibility. Avoidance or failure to take a detailed assessment of one's financial status can only create financial ruin.

When we look at our bank accounts and the numbers are out of balance with what is required to cover our monthly expenses, the first step is always recognizing the problem. The ability to recognize the problem empowers us to begin seeking solutions. As a college freshman I was enticed by the numerous credit card offers that were readily accessible and displayed just outside of our campus student center. I joined the multitude of students who lined up to apply for our first credit cards with visions of shopping, and only having to make $15 monthly payments, and receiving the t-shirt and water bottle that were given in exchange for our committment.

Two years ago, I developed the desire to become a homeowner. It was at this time that the decision I had made to apply for various charge accounts ten years prior as a college freshman began to haunt me. Over the years I had experienced financial hardships that had caused my credit card balances to increase substantially, and the $15 minimum monthly payments that were once so attractive, had increased to amounts that were often times outside of my monthly budget. As a result, late fees, and delinquencies caused my credit rating to plummet, making Real Estate Agents turn me away within five minutes of assessing my credit report.

Saddened by the unfavorable response I received, I began to wonder if I would ever be able to pay down enough debt, or achieve a credit score that would make me worthy of achieving my dream of homeownership. One day I came home to a notice left in my apartment door from a real estate agent with information on it about a homeownership program called NACA. I called the number provided and the agent offered to sign me up for a workshop. Unsure if it was worth investing the time to attend, I politely thanked the agent and told him I would sign up at a later date.

Recognizing the need to get my finances in order, a few weeks later I signed up for a financial seminar hosted by my church. The Real Estate Agent facilitating the seminar also mentioned the NACA program, and after hearing the program referenced once again I decided that maybe I should register for a workshop afterall. The financial seminar provided by my church was held in January of 2008, I went to the NACA workshop that February where I was able to schedule an appointment to meet with a NACA counselor. I began meeting with my NACA counselor monthly beginning in March of 2008. During this time my credit report was reviewed, and I received assistance with identifying the necessary steps I needed to take in order to become a homeowner. On November 26, 2008, the day before Thanksgiving, I closed on my first home. Needless to say, on Thanksgiving day my heart was overflowing with thankfulness! I promised God a long time ago that on this journey of life I would use the lessons and blessings he's provided to encourage anyone who may cross my path. Below I have listed tips, suggestions, and links to online resources to aide all who may be interested with reaching their financial goals. I am now beginning a journey toward becoming debt-free and I would like to invite anyone who desires to experience the joys of financial freedom to join me.


Step 1: Face Your Debt - Set some time aside to focus completely on performing a financial assessment. Obtain a copy of your credit report, gather all monthly bills and expenses and calculate the amount of debt owed, and review interest rates on loans and credit cards.
Click the link below to obtain a free copy of your credit report.
https://www.annualcreditreport.com/cra/index.jsp

Step 2: Get Organized - Create a spreadsheet or use Quicken software to record expenses. All expenses should be recorded to include day-to-day expenses. Even small amounts, in order to keep tabs on where every penny of your money is going, and to determine the exact amount needed monthly for household expenses.

Step 3: Negotiate - Creditors are often willing to lower interest rates and/or settle a balance for an amount lower than is owed. This can be done by simply calling the creditor and making a request to receive a settlement, a lower interest rate, or refinance your home. NACA also provides a home save program as well as refinance assistance available to current homeowners. Visit www.naca.com for more information.

Step 4: Develop A Realistic Budget - Design a budget that includes all monthly expenses to include paying yourself first by determing how much to invest toward's savings and investment accounts. Entertainment and leisure expenditures should also be included and decided upon in advance in order to maintain your budget. Decide what your financial goals are and which areas you are willing to cut-back on to reach your goals.


Step 5: Plan A Course Of Action - After reviewing your expenses you may find that there is not enough income available from month to month to cover your expenses, reach your investment/savings goals, or to live the lifestyle desired. If this occurs it is time to consider options such as seeking opportunities for earning additional revenue, researching funding and requirements to gain an advanced degree or certificate, changing careers, or cutting out all unnecessary spending in order to reach financial goals.


Additional Tips For Achieving Financial Success

- Strive to live below your means

- Limit dining out

- Save and utilize coupons
http://www.couponmom.com/
http://www.wow-coupons.com/all-printable-retail-coupons.php
http://www.southernsavers.com/


- Always ask clerks or business owners about
possible specials or customer rewards programs.

- Purchase clothing during off seasons, or during seasonal
sales.

- Create a plan and stick with it!!!