Kathy Griffin's Take on Financial Planning

Kathy Griffin has some wise insight on finances andDSL or Highspeed Internet
money management. If you listen to her advice youTelephone
may find yourself in a much better financial situationHome Office SuppliesPersonal ExpensesCar
and if you don't listen to her advice she my make funPayment
of you on her show someday!During an episode of MyCar Insurance
Life on The-D List, Kathy Griffin's reality show, sheGas
made wise cracks about actors and actress and theirHealth Insurance
finances. Kathy's comment was that she hates itMedications
when she hears actors and actresses say, "I don't doCell Phone
the 'business thing'. I am an actor." Kathy's sarcastic,Club or Membership Fees/Dues
yet true, remark about why this bothers her is thatClothes
"business thing" is PART OF YOUR JOB. You need toShoes & Accessories
learn the business end of things. You, as an actor orToiletries
actress, are your own business and have to run yourSubscriptions
professional life and personal finances as aEntertainment (movies, theater, amusement parks,
business.Think that doesn't matter to the averageetc.)Debit PaymentsCredit Card Payments
Joe? The reason this is such an important point is thatLoan Payments
it is pertinent to all working people. You spend such aStudent Loans
great deal of time working to make money but mostSecond/Third Mortgage Payment
spend so little working on how to make that moneyBoat, Motorhome, Time Share Payment(s)
work for you.How do you learn to handle yourMedical BillsIf you have childrenTuition/Day care
finances?While all of us might not have the A-ListClothes
actor/actress income to manage everyone shouldSports, classes or club fees
manage their money. The first step is Money 101:School expenses (formals, pictures, uniforms, etc.)
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 you
the bank, stocks, bonds and other securities afterspend money on***NOTE: Now that you know how
subtracting loans, credit card debts, and other securedmuch you spend each month SPEND SMARTER.
debtA majority of Americans in households withMake changes to your budget and change your
incomes of $35,000 or less believed that they arespending habits to be able to save monthly.***3 -
more likely to accumulate a $500,000 nest egg byTHINGS YOU NEED TO PLAN FOR BUT USUALLY
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 not
YOUR MONEY BY CREATING A BUDGET1 -created a separate savings budget to plan for these
KNOW YOUR TRUE INCOMEStart with the basics.items you will soon find yourself overbudget and in a
Identify how much money you make.Begin by figuringjam.Know the "Special Savings" figure you actually
out your net paycheck and multiplying the number ofNEED to save each month.This list will include the cost
checks you receive per year then divide by 12of 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: Ifbrakes, etc.
you are paid weekly $1200 then your monthly incomeVacation(s)
is$1200 x 52 (weeks in a year) = $62,400 / 12 monthsChristmas Expenses, gifts, etc.
= $5200 per month2 - MAKE A VERY, VERYCar RegistrationIf you own a home:Homeowners
DETAIL BUDGETWhat are your actual expenses?insurance
Take a look at how you are currently spending yourProperty Tax
money. By looking at your current spending habits youHome repairs or maintenance costs (water heater,
can identify areas where you need to modifyroof leak, etc)4 - SAVE, SAVE & SAVE
spending. Some "necessities" are often luxuries we likeMOREWhatever method of savings works best for
to think of as necessities (morning coffee, dining out,you, DO IT. Even if it a jar on the dresser you fill with
new shoes for every new outfit, etc).It is smart tomoney, a savings account, whatever. Take 10% of
evaluate your current spending and set goals that takeyour earnings and pay yourself first, meaning save.
into account your financial goals. Once you've set yourThis money will not only build a cushion for
budget, STICK TO IT and track your spending toemergencies but will help you sleep better knowing
make sure it stays within the guidelines you'veyou have a little stashed away should something
established.It is important to detail every standardcome up unexpectedly.It will also create the habit of
monthly expenditure you have.saving and budgeting will lead to smarter spending,
Be realistic on how much you actually spend. Look atwhich in the years to come will develop into a solid
how much you spent last month these items and youfuture.Even if you finish you spending and savings
may be surprised.Here is a sample list of expenses:budget and it is more than you make it is a starting
EXPENSE #1Savings - 10% of income (rememberpoint. 40% of Americans live on 110% of their annual
PAY YOURSELF FIRST!)Householdincome! Don't be one of them. Cut back expenses or
ExpensesMortgage or Rentfind more income. It is better to have to tackle your
Home Owners Associationfinances than to not even know you have a
Foodproblem.More sophisticated money management, such
Groceriesas investments, can be tackled later. Start with getting
Dining Outthe basics in and working!Nicole Anderson offers a
Coffee/Teafree search for your portion of the $25+ BILLION in
Lunches (kids)Electricunclaimed money in the United States. Millions of
GasAmericans are unaware they are owed money. It
Cablecould come from old savings bonds, uncashed checks,
Trashchecking and savings accounts, the list goes on and
Water/Seweron.