Financial Readiness: Preparing for BRAC (Base Realignment And Closing)

The recommendations for military base closings have been released and the news is not good. If the recommendations are accepted, you will lose your job. So what do you do? Hope for the best, and prepare for the worst.

There is a benefit to this situation. Unlike many individuals who suffer the loss of employment, you have advance warning. This is an opportunity to prepare yourself and your family. Use this time to create a financial plan.

The importance of a budget can not be stressed enough. A budget is a tool that helps you track your income and expenses, giving you a snapshot of your overall financial picture. Know where your money goes. Identify areas where you can cut back. Knowing your financial obligations will be critical while planning for the loss of income.

The next piece of the planning puzzle is net worth. Your net worth is what you would have leftover if you sold all of your assets (what you own) and used them to pay off your liabilities (what you owe). This will require sitting down and making a list of those assets and liabilities. This may sound like an overwhelming project, but it is important that you know exactly where you are financially. Knowing your net worth is essential for planning for an emergency such as unemployment.

Ideally you will have a rainy fund that will cover six months of living expenses. If not, don't panic. Start putting a portion of your paycheck aside each month. Putting away a little money now will provide a financial cushion if you don't find a new job right away.

The last piece of advice is start paying down your credit card debt. Getting rid of credit card payments will help your emergency fund go farther. It will also save you money on interest, money that you can add to that fund.

You will find forms on this website to help you complete a budget and net worth analysis as well as set financial goals, such as setting up an emergency fund.

It is never easy to find out you are losing a job. But you do have an advantage over the worker who gets a pink slip on Monday and watches the factory get boarded up on Friday. You have time. Use this time to get control of your finances so that you will be prepared. And in the event that your base is spared, you will have significantly improved your financial picture.

Leslie Linfield is a national expert on adult financial literacy education and the consumer credit counseling industry. She has advised governmental, educational and non-profit organizations alike, and she has been quoted by the New York Times and Wall Street Journal as an expert on budgeting and consumer credit. She has also presented literally hundreds of seminars and lectures on personal financial management.

---

Single Mother Resources Directs You Towards Success

As a parent you are bound to face a few... Read More

Why Live Frugally

What is it about being frugal, why do it at... Read More

Live Green; Save Green!

Have you seen the recent article on a new "green"... Read More

Government Grants - Beware of Scams

As the saying goes: "Buyer Beware". If you see ads... Read More

Tips To Save Money At The Supermarket

Are you interested in saving money off your grocery bills?... Read More

Healthy Eating On A Budget

It is possible to eat a healthy, balanced diet without... Read More

Family Money Management: The Importance of Agreement

Are you having problems with debt? Are you afraid to... Read More

Saving Money - The Magic 20 Percent

Saving money is not easy and is made more difficult... Read More

Bankruptcy Laws Get Tougher - More Expensive

If you've been thinking about filing for bankruptcy, your best... Read More

More Money? My Cup Runneth Over...But Im Still Thirsty

Most of us, especially those of us who have debtor's... Read More

Resources to Help You Learn About and Protect Yourself from Identity Theft

There is a new bill that is being passes, it... Read More

If All Things Are Possible, Why Cant I Balance My Checkbook?

For me, the most terrible time of each month is... Read More

College Expenses: Seven Ways to Save on an Education

Many people graduate from college owing thousands of dollars in... Read More

The Origins of Check Writing

People haven't always written checks to buy goods and services.... Read More

Budgeting Your Way to Financial Freedom

Financial freedom cannot be achieved without budgeting. Budgeting involves tracking... Read More

Identity Theft is a Major Problem: Whose Responsibility is It to Protect the Consumer?

We have heard a lot about consumers' personal information getting... Read More

One Income Source Is Not Enough!

My personal opinion is that in today's new economy, it... Read More

How to Save Money in a Grocery Store

Now there are ways to save money in the grocery... Read More

10 Quick And Cheap Ways To Cut Your Heating Bill

When you received an energy (heating) bill last winter, were... Read More

Save On Food - Ten Tips

To save on food, be an opportunist. Buy what you... Read More

Improve Your Professional Image Using Address Labels

One of the simplest ways to improve your professional image... Read More

How to Obtain a Non ChexSystems Bank Account Without Being Scammed

Predatory lending exists in the mortgage industry. It's typically when... Read More

Debt Management ? More Ways to Save on Gas Consumption

The price of gas continues to climb, and with continued... Read More

A Quck Lesson in Saving Money

Did you have a piggy bank when you were a... Read More

Understanding Your Finances Can Give You Power And Choice

What is finance and what do you need to know?... Read More