Kathy Griffin's Take on Financial Planning

Kathy Griffin has some wise insight on finances andWater/Sewer
money management. If you listen to her advice youDSL or Highspeed Internet
may find yourself in a much better financial situationTelephone
and if you don't listen to her advice she my makeHome Office SuppliesPersonal ExpensesCar Payment
fun of you on her show someday!During an episodeCar Insurance
of My Life on The-D List, Kathy Griffin's reality show,Gas
she made wise cracks about actors and actress andHealth Insurance
their finances. Kathy's comment was that she hatesMedications
it when she hears actors and actresses say, "I don'tCell Phone
do the 'business thing'. I am an actor." Kathy'sClub or Membership Fees/Dues
sarcastic, yet true, remark about why this bothersClothes
her is that "business thing" is PART OF YOUR JOB.Shoes & Accessories
You need to learn the business end of things. You, asToiletries
an actor or actress, are your own business and haveSubscriptions
to run your professional life and personal finances asEntertainment (movies, theater, amusement parks,
a business.Think that doesn't matter to the averageetc.)Debit PaymentsCredit Card Payments
Joe? The reason this is such an important point isLoan Payments
that it is pertinent to all working people. You spendStudent Loans
such a great deal of time working to make moneySecond/Third Mortgage Payment
but most spend so little working on how to makeBoat, Motorhome, Time Share Payment(s)
that money work for you.How do you learn toMedical BillsIf you have childrenTuition/Day care
handle your finances?While all of us might not haveClothes
the A-List actor/actress income to manage everyoneSports, classes or club fees
should manage their money. The first step is MoneySchool expenses (formals, pictures, uniforms, etc.)
101: Create a Budget!Alarming StatisticsOne-half ofBabysittingMiscellaneous ExpensesSpecial Savings
American households have accumulated less than(see #3 for more explanation)
$1,000 in "net financial assets", the value of money inInclude any items omitted from the above list that
the bank, stocks, bonds and other securities afteryou spend money on***NOTE: Now that you know
subtracting loans, credit card debts, and otherhow much you spend each month SPEND SMARTER.
secured debtA majority of Americans in householdsMake changes to your budget and change your
with incomes of $35,000 or less believed that theyspending habits to be able to save monthly.***3 -
are more likely to accumulate a $500,000 nest eggTHINGS YOU NEED TO PLAN FOR BUT USUALLY
by winning a lottery or sweepstakes (40%) than byOVERLOOKThere are items in your budget that
patiently saving and investing of relatively modestcome up irregularly but will inevitably come up. Things
sums (30%).- Project C.A.S.H.START MANAGINGlike new tires, vacations, Christmas, etc. If you have
YOUR MONEY BY CREATING A BUDGET1 - KNOWnot created a separate savings budget to plan for
YOUR TRUE INCOMEStart with the basics. Identifythese items you will soon find yourself overbudget
how much money you make.Begin by figuring outand in a jam.Know the "Special Savings" figure you
your net paycheck and multiplying the number ofactually NEED to save each month.This list will include
checks you receive per year then divide by 12the cost of the following:Income Tax
(months in a year) or taking your annual net incomeCar maintenance such as new tires, oil changes,
and dividing it by 12 (months in a year).For example:brakes, etc.
If you are paid weekly $1200 then your monthlyVacation(s)
income is$1200 x 52 (weeks in a year) = $62,400 /Christmas Expenses, gifts, etc.
12 months = $5200 per month2 - MAKE A VERY,Car RegistrationIf you own a home:Homeowners
VERY DETAIL BUDGETWhat are your actualinsurance
expenses? Take a look at how you are currentlyProperty Tax
spending your money. By looking at your currentHome repairs or maintenance costs (water heater,
spending habits you can identify areas where youroof leak, etc)4 - SAVE, SAVE & SAVE
need to modify spending. Some "necessities" areMOREWhatever method of savings works best for
often luxuries we like to think of as necessitiesyou, DO IT. Even if it a jar on the dresser you fill
(morning coffee, dining out, new shoes for everywith money, a savings account, whatever. Take 10%
new outfit, etc).It is smart to evaluate your currentof your earnings and pay yourself first, meaning save.
spending and set goals that take into account yourThis money will not only build a cushion for
financial goals. Once you've set your budget, STICKemergencies but will help you sleep better knowing
TO IT and track your spending to make sure it staysyou have a little stashed away should something
within the guidelines you've established.It is importantcome up unexpectedly.It will also create the habit of
to detail every standard monthly expenditure yousaving and budgeting will lead to smarter spending,
have.which in the years to come will develop into a solid
Be realistic on how much you actually spend. Look atfuture.Even if you finish you spending and savings
how much you spent last month these items andbudget and it is more than you make it is a starting
you may be surprised.Here is a sample list ofpoint. 40% of Americans live on 110% of their annual
expenses: EXPENSE #1Savings - 10% of incomeincome! Don't be one of them. Cut back expenses or
(remember PAY YOURSELF FIRST!)Householdfind more income. It is better to have to tackle your
ExpensesMortgage or Rentfinances than to not even know you have a
Home Owners Associationproblem.More sophisticated money management, such
Foodas investments, can be tackled later. Start with
Groceriesgetting the basics in and working!Nicole Anderson
Dining Outoffers a free search for your portion of the $25+
Coffee/TeaBILLION in unclaimed money in the United States.
Lunches (kids)ElectricMillions of Americans are unaware they are owed
Gasmoney. It could come from old savings bonds,
Cableuncashed checks, checking and savings accounts, the
Trashlist goes on and on.