PERSONAL FINANCIAL PREPAREDNESS IN UNCERTAIN ECONOMIC TIMES

BRIEFING GOALS

• How to plan for financial changes• How to increase cash flow• Resources for support• Savings strategies

AMERICAN STATISTICS

• By some estimates, more than one million employees of federal agencies may receive furlough notices.

• Even if a person does not anticipate being impacted by a government shutdown, now is a good time for a comprehensive financial review

• No one has ever regretted being financially prepared, and preparation starts with understanding where you stand today.

PLAN & PREPARE

• Determine how much of an impact a pay delay will have on your personal finances? Evaluate the situation and its entirety…• Run the numbers with your current

budget• Work from your obligated expenses first

• Incorporate other expenses on a priority basis

IMPACT…..MAYBE NOT….

• www.MyMoneyCheckUp.org• NFCC's free financial self-assessment

tool• Evaluates 4 areas: budgeting and

credit management, saving and investing, planning for retirement, and home equity

• Overall financial health is generated

ASSESS CURENT FINANCIAL SITUATION

• Talk with your family about how things may change• Brainstorm as a family how to absorb the

shortfall to ensure everyone is on board• Lights• H2O• Laundry• Gas in the car-maximizing trips• Eating out• Explore new entertainment ideas that save

money

WHAT CAN I DO NOW?

• Meal planning can save hundreds of dollars at the grocery store.

• Online resources that make planning easy and cost effective.• http://www.foodonthetable.com/

meal_planning • Create menu for the week• Then a grocery list will be provided• Coupons available for items on grocery list• Detailed grocery list by aisle at designated

grocery store

SAVINGS/CASH FLOW STRATEGIES

• Take A Hardship Loan from Investments: Not ideal but could help in a rough time www.tsp.gov

• Negotiate With Lenders: It’s in their best interest to help you make your payments, even if it means a lower interest rate or extending the terms.

• Air Force Aid Society may be an option if you are married to an active duty member-interest free loans www.afas.org

SAVINGS/CASH FLOW STRATEGIES cont…

• Student Loans: Discuss possible forbearance/deferment or other hardship programs with lender

• Car Loans: Some companies offer a “skip a payment” option usually around the holidays. Discuss with lender…

• Many church’s have a relief fund for people in a financial crisis…(utility bills, etc.)

SAVINGS/CASH FLOW STRATEGIES cont…

• 1. Turn off the television: Premium cable and satellite subscriptions can cost anywhere from $500 to over $1,000 per year or more.

• 2. Trim your subscriptions: Magazines, DVD Rental, & Gym memberships-Do you really use or need all of them?

• 3. Avoid banking fees: Banks are regularly changing their products and you may be paying a monthly fee.

• 4. Pay your bills on time: These fees can be substantial, ranging anywhere from a few dollars to $40 or more.

• 5. Keep eating lunch out at a minimum: Did you know that spending only $6 a day on lunch while at work can cost nearly $800 per year? If both spouses are doing this…. $1,600 per year just on lunch!

5 TIPS TO CUT SPENDING LEAKS

FINANCIAL SUPPORT RESOURCES

• Federal Employee Education and Assistance Fund. No-interest loans of up to $1,000 are available to assist with individual emergency situations such as loss of income. www.feea.org

• Active Duty: The relief societies are standing by to take requests for emergency assistance. Loans are interest free.

Friends of Military Families Private Organization (FoMF)

• FoMF is available to assist Airmen/families with financial emergencies when the relief societies are NOT an option.

• Call the A&FRC for more information 256-8668.

Illinois Assistance Programs

• www.needhelppayingbills.com/index.html • Click on Illinois• Scroll through the many financial

support services available in Illinois• General Assistance Program: Provides

families and people with emergency funds, cash grants and also limited medical care to help take care of themselves

• AND….

ILLINOIS CRISIS ASSISTANCE

• Crisis AssistanceOrganizations such as the Illinois Department of Human Services and other social service agencies offer a number of grants and cash assistance programs. Find help with medical bills, housing, food, and job training

• www.needhelppayingbills.com

THIS IS A GREAT RESOURCE!

ILLINOIS HARDEST HIT

• www.illinoishardesthit.org• Temporary mortgage payment assistance

• Maximum assistance is $20,000 - $25,000 (individually based)

• Borrowers may be currently experiencing an income loss or experienced one in the past that caused them to get behind on their mortgage payments.

ILLINOIS FINANCIAL PROGRAMS

• Rental Housing Support ProgramThe state of Illinois Rental Housing Support assistance program is the nation’s largest state run rental assistance program and it helps thousands of people pay their rent each month.

• 312-386-1009

UTILITY SUPPORT

• Ameren - Hardship Assistance for Residential Customers

• Nicor Gas AssistanceThis program was created specifically to help customers who can’t afford to pay their heating or energy bills.

• Illinois utility bill and energy assistance programs… Illinois families may qualify for financial assistance to pay their utility bills• Over 15 different programs available in IL

MINISTRY SUPPORT

• Beacon of Belleville• Provide information on financial support

and food boxes/banks. Clearinghouse for many churches to provide support

• www.beaconministry.org

• 618-222-8824

FOOD BANKS

• Free Food BanksHundreds of food banks throughout Illinois provide free or low cost food, groceries, and other non-financial support to residents of the state. These are in addition to programs offered in your county.

• http://www.stlfoodbank.org/

OTHER FOOD SUPPORT PROGRAMS

• Treasure Valley Food Box:National organization that provides food boxes to anyone who needs help, regardless of their income, background, religion, or age. The name of the program administered is the Good Faith Food box, and it can provide families with groceries and food valued at about $60. However the food box will only cost individuals about $35.

GABALLI FOOD PROGRAM

• No income requirements• Can help people save up to 70% on

their grocery bill• Top quality hearty country meals meat,

chicken, fish, and produce is offered.• Phone number: 305-705-7257

• http://www.gaballi.com/

SALVATION ARMY

• Crisis AssistanceIf you are faced with unexpected bills or need help paying for basic needs like food, rent, and more, the Salvation Army operates across Illinois.

• The Salvation Army of Illinois may be able to offer you transportation assistance in the form of free gasoline vouchers or bus passes/tokens.

ST CLAIR COUNTY SUPPORT

• Help with heating and air conditioning bills

• Mortgage Help• St. Clair County Community Action

Agency: one of the leading non-profits in the area. Counselors may be able to help you with apply for programs that provide financial assistance, and they are definitely a great place to learn about your options and various programs.

(618) 277-6790

ST CLAIR COUNTY CONT….

• The St. Clair County Community Services Division (phone 277-6790) offers Emergency Food and Shelter, Rent and even Mortgage Payment Assistance, government grants from the Low Income Home Energy Assistance Program (LIHEAP), and more.

• Look at this time as an opportunity to work on a financial goal

• Discover ways to be more thrifty that can be used for a long period of time.

• Make these new changes your NEW NORM• Make it a family affair that everyone is excited

about. Turn it into a game…..How much can we save this week?

• Understand that emergencies are always unforeseen and something to plan for ahead of time.

OPPORTUNITY FROM BARRIERS

A&FRC SERVICES

• One-on-one financial support• Budgeting• Debt reduction plan• Credit score and reports• Investing• Friends of Military Families-Budgeting worksheets available at

www.scottafrc.com

BOTTOM LINE

• Stay Motivated• Maintain a positive attitude• Keep realistic expectations• This presentation will be available at

www.scottafrc.com (Under Personal Financial Readiness tab)

• “Go forward without fear.” – Abraham Lincoln

WORDS OF INSPIRATION

If there is a quick resolution to the delay in pay/shutdown, nothing has been lost by implementing the above steps.

Consumers will be better prepared to face financial issues in the future.

Airman & Family Readiness Center404 W. Martin Street

256-8668www.scottafrc.com