Budgeting in recessionary times

Optimist International

Caribbean District

Q3 Conference Terra Nova Hotel

Kingston, Jamaica

MAY 4 – 5, 2013

JOSA Investments Inc. * (246) 823-1747 * [email protected]


Budgeting and some ideas to get you

through troubled financial times…..

At home, in the work place and in your Optimist Clubs

with Past Governor

Joseph Benfield

Joseph Benfield

MBA,CPA

MD & CEO, JOSA Investments Inc.


Introduction

Having a budget equals thinking about money in an analytical, logical way to avoid excessive debt.

It also means setting realistic goals for spending and saving.

Whatever you enjoy in life, there's a difference between living on a fun-starved budget and living comfortably - yet still affordably.


Introduction

It is quite important that you learn how

to manage your personal finance in

order to build a solid financial footing for

you and your family. This is the right

time that you learn the strategies so that

you’re able to manage your finances so

that you can survive these recessionary

times in a much better way.

JOSA Investments Inc. | (246) 425-1355 | [email protected]

BUDGETING DOESN'T HAVE

TO BE A PAIN…



Keep track of your spending

Go to the dollar store and buy a little notebook and carry it with you wherever you go.

Write down every penny - every single penny - you spend. It's as simple as that.

There is something incredibly powerful about writing down all your

expenditures!

Identify where you’re spending most

While tracking your expenses, you must

also identify where you’re spending the

most. You’ll have to identify your own

spending habits; then and only then will

you be able to make a conscious effort

to reduce it. There may be nothing but a 75-cent notebook and a ballpoint pen

between your life of financial struggle and financial freedom.


Prioritize Your Life

No matter where you live, the culture

that surrounds you affects the way you

think about money. Some societies

preach the gospel of rampant, wasteful

consumerism. Others stress the

importance of extreme frugality and a

sense of do-it-yourself survivalism.


Create a spending plan

Your spending plan is somewhat similar to a

budget, only difference being that a spending

plan is a bit flexible. In simple terms, your

spending plan is just breaking your income

into separate categories and then assigning a

percent of your income to each of them.

Fixed expenses | Variable expenses | Discretionary expenses


Try to maintain a monthly

saving program

Do your best to maintain your saving

program even during a recession.

While it may be difficult to save as much

as you would like you should make an

effort to save as much as you’re able to.


Look for additional income

sources

When the going gets rough one needs to

get creative to survive.

One of the best ways to manage your

personal finance is to look for additional

income opportunities.



STOP DEFICIT SPENDING!

We all know how much trouble our countries have been creating spending more money than they take in.

It's called deficit spending.

Credit cards put you in the hole and keep you there!

Don’t increase your outstanding debt

Think before you swipe your credit card. It

may be difficult to pay off your debt

during recession but be careful of not

increasing it further. Configure your

spending plan in such a way that you

don’t have to pay through your credit

cards.


Becoming a Cosigner

Cosigning a loan can be a very risky thing

to do even in flush economic times.

After all, if the individual taking the loan

doesn't make the scheduled payments,

the cosigner could well be asked to

make them.

.


Adjustable-Rate Arrangements

When considering major purchases, a

home, a car maybe; some individuals

may choose to enter into an adjustable

rate arrangement.

In some cases, this move might make

sense. It may well be the only way you

could afford the purchase at the time.

But be aware!


Taking Your Job for Granted

During an economic slowdown, it's

important to understand that

companies, even large ones, may be

under financial pressure. And when

that happens, many companies will try

to reduce expenses any way they can.


Taking Risks With Investments

Business owners and individuals should

always be thinking about the future. We

should always be thinking about new

and exciting ways to grow our

businesses and increase our wealth.

However, an economic slowdown may not

be the best time to make risky bets.


Beware Budget Burnout – Have

some fun

The media coined a name for budget burnout is

"frugal fatigue,“. It's important to recognize

fatigue if it begins to affect you.

If you feel totally bored with budgeting and sick

to death of squeezing pennies, you're at risk

for a spending bender of sorts. Don't give in

to the temptation.

Don't spend money you don't have!


Parting shot

You now know a little more about

budgeting, but more importantly, I hope

you understand that while living

comfortably has a lot to do with managing

your money, creativity helps too.

With a little more forethought, you can alleviate

financial stress and have more fun at the same time.


Optimist Joseph Benfield

MBA,CPA

MD & CEO, JOSA Investments Inc.


Budgeting in recessionary times

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