Budgeting and Debt Management - Introduction - National Guard Family Program

Introduction to Personal Finance
An Overview for State Family Program Directors, Wing Family Program Coordinators, and Families.

Introduction

Evaluating Your Situation

Budgeting & Debt Management

Goals & Plans

Insurance & Disability Planning

BUDGETING AND DEBT MANAGEMENT

2.	Introduction
	2.1	Why Do We Acquire Debt?
	2.2	Debt Can Become a Habit
	2.3	The Reality of Borrowing
	2.4	The Credit Trap
		2.4.1	Fees
		2.4.2	Rates
		2.4.3	Types of interest
	2.5	Eliminate and Avoid Debt
	2.6	Trimming Your Budget
	2.7	Learning Check

2. Budgeting and Debt Management – Introduction

Many people find they are spending more than they bring in. It’s difficult to increase your net worth (and meet your financial goals) if you are constantly falling behind on the income front.

After reviewing the information you entered on the Monthly Budget Worksheet, you might have to ask some hard questions. For example:
	Are you spending more on entertainment or other nonessential expenses than your income supports? Are you spending more than you have to for necessities such as housing, an automobile, clothing, or other similar items?
The answers will probably point you to one or more possible solutions, such as cutting back on the nonessentials or finding less expensive alternatives. Then, you can put the money you save to work toward meeting your goals.

Right-click on the hyperlink and choose “save target as…” to download all worksheets used in this course, including Worksheet 2: “Monthly Budget Worksheet.”