Keeping Up with the Jones'

Personal Note from Clyrese

November 7, 2009 was the date I was hired at a retirement community as a certified nursing assistant (CNA) here in Wilmington, DE.  Two days shy of two years of being unemployed.  My first apartment was an apartment I hated.  It was a two bedroom apartment that was roach and mouse infested.  Crime was taking place literally around the corner, on my block and in my building every day and every night, all night.  Don't get me wrong, I was grateful for having a roof over my son and I head.  But it didn't feel like home.  Once I got my job I was excited! Excited I was on my way to moving out of the Rat Farm.  I felt I "needed" to move.  Within 1 year I finally moved.  But in the beginning it was hard financially.  

Before moving, within that year I didn't save anything.  I didn't even try.  I felt at that time it was more important to make sure my son was equipped with the best clothes and sneakers, had the best 7th birthday party at Chuckie Cheeses.  I wasn't even buying things for myself.  I was buying things for my son.  He didn't need all the things I was getting him.  I wanted to get them.  But convinced myself that he needed them.  Money was still hard to come by.

When I moved January 2011 I didn't have anything.  I didn't have any money.  I went to state agencies for funding to help me pay for my move in fees.  I didn't even have the money to pay my electric bill before I moved.   Needless to say I was late for the first full month I lived in my big, beautiful, and quiet two bedroom apartment.  

I confused needing to move with wanting to move during the time I moved.  Yes I needed to move into an enviroment that was more safe for my son and I. But God kept a hedge of protection around us.   There were things I needed to get in order before I did.  Like save.  I NEEDED to save instead of splurging.  I could have stayed in my first apartment for another year.  The rent was cheaper which would have made it easier to save.  By the time I was ready to move I would have a cushion.  Shoot, I could have been in a house I owned.

Keeping it real

Needs vs. Wants

What is the difference between a need and a want?

Needs are something a person mush have in order to survive or succeed.  Examples of needs are food, clothes, shelter.  You can't survive without food.  Going without eating for several days could cause sickness or worse.  You need clothes to keep you warm and protect you from the cold or hot weather.  Shelter will also protect you from inclement
weather.

Wants are things that a person desires but can live without.  While you need food, you don't need surf and turf (shrimp and steak).  You need something to satisfy your hunger.  You need clothes, yes.  But you don't need the newest Abercrombie dress or the latest Michael Kors hand bag.  We need shelter.  However, if you can't afford a $250,000 house, why try to buy one.

Its important to live within your financial means.  Over spending takes away from things that are important.  Learning and disaplining yourself to save for the things you want is a good way to satisfy your disires.

Another good option is layaway.  Layaway is my best friend when it comes to shopping.  Stores like Marshell's and TJ Max and Burlington Coat Factory allows you to layaway any of their items for up to 30 days.  You may have to put down a small deposit.  Some places as low as $10.  The only two down falls are you have to pick up you items within the 30 day slot or you loose your deposit.

Budgeting as a Single Parent

As a single parent we are already troubled with time and income.  Living within our means is crucial.  Once we have crossed the line of debt and financial stability is is jeopardy and it is hard to get back on track.  

A lot of times, as single parents we forget to get things we desire.  When we see something we go over board.  Go out and purchase the purse that cost too much.  Once it is bought it we feel guilty.  Because we feel like that money could have gone to another bill or something for the house. 

The following are suggestions on how to start a budget plan and begin implementing paying yourself first.  The illustrations below are clips from a spreadsheet I use with clients.  That helps them create a budget.

Step 1- Categorize all your expenses.

                 Example: 

Wk 1 column is where you input how much you owe on those bills.  The actual column is where you input how much you are going to pay on the corresponding bills.

Step 2- Input the values.

                 Example:

Step 3- After you have done steps two and three you can calculate how much you want to spend on miscellaneous spending such as entertainment, shopping, and vacations.  Don't forget to pay yourself first.

Once you begin budgeting you will notice that you will have to make changes and tweak your plan.  That is OK.  There is no budget plan that is perfect.  

Pay yourself first.

This concept is very important.  You don't want to leave yourself out of the little pleasures of life.  I pay myself $10 per pay.  Which is what I can afford on my current budget.  I use that money for myself only. For example, I have a butterscotch krimpet craving.  Its a bad one.  I have to sometimes fight myself from getting them.  :-)  I put in my budget once a month to treat myself to one krimpet.

There are times when I don't spend my $10 allowance.  That will happen to you.  You will find yourself saving when your not trying.  

If you need help with creating a personal budget contact us for a free consultation contact me, Clyrese Minor via email by clicking on the link below.  In your email include the following information:

Full Name

Phone Number

Email Address

The best time to call you.

financialbondagebroken@gmail.com

***PLEASE LEAVE A COMMENT WE WOULD LOVE TO HEAR YOU THOUGHTS AND DISCUSS YOUR EXPERIENCES WITH BUDGETING AS A SINGLE MOM***

Banking, Which is Best?

Personal Note from Clyrese

A Good Steward of Finances

1 Corinthians 4:2 "Moreover it is required in stewards, that a man be found faithful."

A good steward is faithful.  When a good steward is faithful over a few things God will make him or her ruler over many things.  Doesn't that sound beautiful?  Hey I can't take credit for that.  God said it in Matthew 25:21.

What is a steward.  Webster defines it as one who actively directs affairs.  In the Contemporary English Version of the Holy Bible they refer to stewards as managers on many different occasions.

My ultimate dream for my family and I are to be able to leave my son with a house and money when I pass away.  That is the end dream.  When I was going through my struggle and the way my finances were going there was no way I was going to accomplish my dream.  If I were to die tomorrow my 11 year old son, well at that time 9, would be a homeless orphan with no money.  So I had to get the ball in motion.  

I had to learn to be faithful in managing my little bit so I will be able to manage the big stuff.  

The Banking Experience

The banking experience can be a blessing or a course.  If you utilize it the way well.  Overdraft fees and charge offs are NEVER good.  Did you know that when you are going to purchase a
home and you have over draft fees on your statement within 12 month period it could prevent you from going to get a home loan.  How? Well, that is because it shows that you are not managing your money well and they don't want to risk missed payments or returned checks.  Think about it.  Would you?  Let's say a friend of yours loans another friend $200 expecting payment within a certain time.  That friend (lendee) doesn't pay the other friend (lender) back, or always later for their payments would you be willing to loan money to that friend.  Probably not right?  That is how banks feel about loaning money to people with poor credit and poor money management.  

Also, poor credit and poor banking habits can also prevent you from opening a checking account with most banks.  

Let's Get Real...

My experience with banking has not always been good, its still not as good as I want it to be.  I used to bank with WSFS Bank at a branch here in New Castle, DE.  It was, to me, a very good bank.  Hours of operations were convenient for me and busy life as a single mom.  Banking fees was practically non existent, unless I overdraft my account.  Which was often.  Look my fault.  Then one month, when I reached my breaking point in life I purposely overdrew my account.  I paid my cell phone bill, $300+, and my cable bill $100.  Removed direct deposit so that my entire check wouldn't  be gone so I could pay some of my rent and buy food.  And ran to a credit union and opened an account with them before the charge off appeared on my account.  Yes I did that!  I was COMPLETELY WRONG IN EVERY WAY! Of course I allowed the checks to bounce, account to close, and it went to collections.  I made payment arrangements with the WSFS Bank, and paid it off right away within 4 months.  But, to this day I cannot open a checking account with any bank bank because it takes 5 years for it to be removed from my credit report.  Its been 4 years.  I have one more year. Then I'm free.

I'm hear to tell you options and ways of how to avoid this experience.  Remember my blog a couple weeks ago How to Communicate with Bills I talked about balancing your check book.  That is the best way to stay up to date with your account balance.  The second best is, to me, checking it online through your electronic devices.

Why Credit Unions is a Good Option

1. Lower rates on loans according to the National Credit Union Administration (NCUA).  Banks are charging twice as much in interest on the same type of loans than credit unions.  National Credit Unions Administration states that as of June 28 the average rate is 2.85% on a 36– month car loan, while banks are charging 5.59%.

2. According to the NCUA, credit unions have higher rates on savings.  On ten (10) different types of accounts, such as checking accounts and 5-year certificates of deposits, are higher on average than at banks.

3. Better Credit Card Deals In June, NCUA said the average credit cared interest rates at banks are 12.85% for bank-issued credit cards.  While at credit unions the rates are 11.56%.

4. Credit unions are a little more flexible with lending than mega banks.  National banks require signature loans, unsecure loans that are guaranteed only by a signature.  Credit unions provide the services by just being a member.  To become a member a small deposit is required.

5. Credit unions are convenient. They have made banking very easy with online, phone, and in-person services.  Many of them belong to shared branch cooperative that allows them to conduct business anywhere in the world.  To find a participating credit union where ever you are there is a free app called CO-OP Shared Branch.

6. Credit unions also have lower banking fees.  Each credit union has different rates.  When you research and compare the fees you will find that they are lower than banks fees.

7. Credit unions are much smaller.  When ever you need to call about your account you will more likely talk to a live person, except after business hours.  I have been banking at the same branch for three years now and they are always pleasant.  I get the same treatment at other branches.

8. They are just as safe as national banks.  Credit unions are not members of the FDIC they have their own form of insurance.  You can read more about their insurance in this article from TheStreet.com. 

9. They are .  In the past, to join a credit union you had to be a affiliated with a particular company or organization.  Now-a-days most qualifications are you have to live or work in the same city, state, or county.