Chapter 7: My Money and My Housing
Managing My Money
Money management skills and good practices are needed no matter how much or how little you have. You CAN learn to manage your dollars carefully.
What's Important to You?
Why do you spend your money the way you do? The deep-rooted beliefs you have from personal experiences about what is desirable and good help you make choices about what is important to you and how you spend your money.
What Do You Want to Do With Your Money?
To manage money, it is necessary to take a look into the future, see where you want to be, so you can plan how to get there. Financial goals point out the things you want to do with your money in a certain period of time. Goals give you purpose for the way you spend your money today and tomorrow.
Short Term Goals can be done in a week or a few months, but no longer than a year.
Intermediate Term Goals can be accomplished in 1 to 5 years.
Long Term Goals look ahead 5-10 years and longer.
Remember to:
- Set goals you can accomplish so you don't get discouraged and give up.
- State your goal in detail.
- Be flexible about making adjustments in how you reach your goal.
Your Thoughts on Money
How would you change spending if you had more money?
How would you change spending if you had less money?
Cutting Back on Your Spending
Does your paycheck always seem to run out before the end of the month? If you said "Yes," then it's time for you to take a look at your spending habits.
What's the Problem?
Reasons some people can't seem to get ahead are:
- Impatience-You want something NOW.
- Impulse buying-You see something and buy even if you did not plan to.
- Lack of self-discipline in saving money so it can work for you by earning interest.
Spending habits can be changed if you identify the spending leaks that give you immediate pleasure or satisfaction, but don't help you reach any of your financial goals. Are you making too many impulse purchases, too many food purchases, or extra trips to the mall?
10 Ways to Plug Spending Leaks
Learn to recognize the "triggers" that put you in a spending situation. Maybe you enjoy shopping at yard sales or flea markets. - Learn to recognize the "triggers" in your surroundings that tempt you to buy. Do you find yourself spending more money when you go shopping with a certain friend? Do you spend money when you are feeling "blue"? Here are some other suggestions that might be helpful:
- Avoid exposing yourself to things that will tempt you to spend. Stay away from the stores except when you have something you absolutely need to buy.
- Plan your shopping. Go with a purpose in mind. Use that list!
- Limit your number of trips to the store or the mall.
- Don't shop when you are hungry, tired, or depressed.
- Think first before you spend money and ask yourself:
- Can I do without?
- Can I continue to use what I already have?
- Can I make it instead of buying it?
- Can I borrow someone else's?
- Can I substitute something less expensive?
- Is this a need or a want?
- Learn to say "NO" to:
- Items that don't rank high on your spending priority list.
- Items that are too expensive for your budget.
- Friends or relatives selling things.
- Use feedback from a record of spending you keep.
- Establish spending guides to plan your spending and set spending limits.
- Reward yourself for following the shopping rules.
- Keep credit purchases to a minimum.
- Buy from reliable dealers and make choices that best meet your needs.
- Reduce waste to save money.
Making a Personal Budget
You should know that for many people talking about money is very difficult. Many people feel they have little control over how much money they get, or how they spend their own money. A budget helps you think about your money as it relates to your housing goal. First, take a look at your current income and expenses each month. Then look at new expenses or income that may be part of your new housing goal.
You may want to go over this section with someone in your Circle of Support who believes that you should be in charge of your own money yet would not mind questioning you about whether your financial decisions make sense.
Your Current Monthly Income
Look at each income source that you have, and list the amount you get in a typical month. Some common sources of income are:
- Hourly, part-time, or full-time job
- Odd jobs or free-lance work
- Non-traditional sources of income (for example, recycling cans)
- Entitlement checks (SSI or SSDI)
- Retirement check
- Gifts of money from family or friends
- Workers' compensation
- Food stamps
- Utilities subsidy
- Transportation subsidy
- Child support payments
- Loans from family/friends
- Other income sources
Your Current Monthly Expenses
Look at all of your possible expenses, and list the amount you usually owe in a typical month. The following are common expenses:
- Rent/mortgage/housing costs
- Utilities
- Meals
- Clothing
- Personal care items
- Transportation
- Personal habits/needs
- Recreation
- Other Expenses
Which is greater, your income or your expenses? If your income (money coming in) is greater than your expenses (money going out) then you are in good shape. If your expenses are greater than your income, then you have a problem and need to work to make each total match up.
Extra Expenses for My New Housing Goal
With your current budget in mind, it's time to think about the expenses associated with your new housing goal. Take a look at your goal again. Talk with your case manager and others to get ideas for what your new expenses may be. New housing expenses might include: apartment security deposit; higher rent than what you are paying now; new/extra transportation; or furniture/household goods for your new place. Sometimes this will involve cutting back what you spend in other areas. Sometimes it will mean talking with a counselor about ways your current income might be used to fund part of your goal. Other times it will mean figuring out if hourly work or a loan (from family or elsewhere) is possible to meet the expenses of your new goal.