Program Managers

How is your financial fitness?

You can find out by taking the quizzes below
Financial Fitness Quiz
or
Financial Fitness Checkup

Topics

Additional Course Information

Budget or Spending Plan

Why have budgets or spending plans?

You need a good game plan to be successful in controlling your money. A budget or spending plan is your game plan. We can’t tell you what to do with your money, but we want to challenge you to think it is your money. The best way to control your money is with a budget because you put it in writing. You are more likely to do something when you do put it in writing.

There are four major reasons to have a budget or spending plan:

• It will help you live within your income
• It will help relieve financial stress
• It will help you maintain a good credit history
• It will help you realize your personal goals and they will improve your life

Before you can develop a budget or spending plan you must know what your net worth is. It’s is hard to determine where you’re going if you don’t know where you are. Your net worth is simply your assets (what you own) minus your liabilities (what you owe or debt). Limiting your liabilities has a positive effect on your worth.

Click here to go to the Net Worth calculator.

Once your have figured your net worth you need to set goals. Doing nothing will not help you realize your financial dreams. You need to set your short and long term goals. Short term goals can be within weeks or less than one year. An example would be the purchase of an airline ticket to go home. Long term goals require a higher commitment such as a down payment on a car within three years. When you set goals they must be smart, measurable, attainable, realistic, and have a timeline.

Once you know what your net worth is and have set your goals it’s time to develop your budget or spending plan. There are two things to consider when doing a budget and they are your discretionary spending and your non-discretionary spending.

• Discretionary spending – This is your biggest obstacle toward realizing your goals. Discretionary is spending money for what you want like soda or candy. Even putting money in savings is discretionary spending. You can spend your money if you want.
• Non-Discretionary spending – These funds are set aside for needs. You have no choice in spending this money. It’s for food and shelter. Things you have to spend money on.

Reducing your discretionary spending increases your ability to save. To reduce your discretionary spending you have to get promoted or decrease your debt. Remember to pay yourself first and don’t figure down to the penny. Your budget or spending plan is unique to you because it reflects your wants, needs, values, and goals. Again, keep it practical and realistic and base it on your current income and expenses and allow for future possibilities. Make sure you keep it flexible and allow for leisure and necessities. Below are three types of calculators that can help you make your budget.

Click here to go to the Hidden expense calculator

Click here to go to the Monthly cash flow calculator

There one major thing to remember when setting your goals and doing a budget. What is your debt to income ratio? That is your debt in relation to your income. Simply take your debt and divide it by your income then multiply the answer times 100. This will give you the percentage of your debt to income ratio. If your ratio is 15% or less it is ok to add some credit with caution. If your ratio is 15-20% you are considered to be fully extended. If your ratio is 21-30% you are overextended and if your ratio is more than 30% you need to seek help immediately.

The following link is a tremendous fountain of information to assist individuals in making sound financial decisions.

Basics of Personal Financial Planning The Basics

This information above is from the Free Management Library and has a variety of topics and examples concerning finances, budgets, and spending. The topics include: The basics, Understanding Your Current Postion, Incentives, Gaining Control, and a Balanced Financial Life. The more you know financially the easier it will be for you to develop your budget or spending plan. There is a link to the Fre Management Library under "Additional Course Information" on the left side of the page.

If you find yourself needing help you can get it through your chain-of-command. You can go to your command financial specialist, to Fleet and Family Service Center, to the Navy and Marine Corp Relief Society, and to management programs at your financial institution.

Assistance

Counseling

• Army - E-mail
  
  Anthony Powell – Ft. Bliss, TX
  Wk Ph:  915-568-4453,
  DSN:  978-4453
  Email:  anthony.powell1@us.army.mil

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• Navy - E-mail
  
  Mike Kempf – Pensacola, FL
  Wk Ph:  850-452-3228,
  DSN:  922-3228
  Email:  mikekempf@bellsouth.net

More information

• Important changes to credit reports for 2008
• Links to more information
• mysdcc.sdccd.edu

New Links 10-21-2008

• Boston.com
• The News Service
• mymoney.gov

Calculators

• Savings
• Monthly Cash Flow
• 401(k) Value
• Hidden Expense
• Life Insurance
• Loan Amortization
• Net Worth
• Retirement Planning
• Taxed and Non-Taxed Compounding

Glossary

• Common terms in financial planning

General Information

• SDCC has articulated the Navy PFM course for one college credit. Navy personnel who have graduated from the Navy PFM course qualify. Typically, it can be difficult to apply one credit and meet the requirements of a three credit semester long course at most colleges and universities. With that in mind, we have taken the initiative of developing a two credit online course that will be available upon completion of the Navy PFM course. Sailors who have completed the requirements of both the Navy PFM course and the online PFM course will be given credit for completing the three credit Consumer Studies 110 course offered by San Diego City College and Mesa College and transferable to any Servicemembers Opportunity College (SOC).

• For additional information or to see if you qualify contact a PFM counselor.