| |
Freedom
Financial Network Outlines Financial Literacy ABCs
-- Simple steps encourage
getting ‘back to basics’ during National
Financial Literacy Month --
San Mateo, Calif.,
April 27, 2006 – Freedom Financial Network, LLC,
invites consumers to wrap up the month of April -- National
Financial Literacy Month -- by going back to basics
with the financial ABCs.
“With total
U.S. consumer debt over $2 trillion and more than 44
million American households carrying average credit
card balances of $8,025, it’s clear many Americans
need more astute financial education,” says Bradford
G. Stroh, co-founder and CEO of Freedom Financial Network,
LLC. Luckily, financial smarts are easy as ABC:
A = Add it
up. Begin by understanding what you have. Add
up all monthly net household income (the amount left
after taxes and other paycheck deductions such as health
insurance and 401(k) contributions) to determine how
much you have to spend. Then categorize your ongoing
monthly expenses into fixed expenses (like rent or mortgage
payments), variable expenses that are “must-buys”
(food, gas, medicine), savings, and finally, spending
money (for unexpected expenses and entertainment). Add
those up to understand your cost of living.
B
= Budget, budget, budget. If you’ve followed
“A,” your budget already is halfway done!
At the beginning of the month, map out how you will
spend your money in the coming month. That’s a
budget. “Don’t forget to pay yourself first,”
Stroh reminds consumers. “Be sure to add a category
for savings, and guard it fiercely.”
C = Cash won’t crash.
If you’re among the Americans carrying
an average of 16.7 credit cards -- and using them
-- put away the plastic. Cash out your spending money
in cold, hard bills, and don’t touch the plastic
for discretionary expenses like clothing, movies,
coffee, dining out or happy hour. Most importantly,
never charge more than you pay off at the end of each
month.
To further support financial literacy,
Freedom Financial Network has developed a 16-page
guide titled “Debt Freedom: Budgeting &
Financial Tools for Today’s Consumer.”
The guide provides advice on understanding cash flow
and debt, defining a budget/spending plan, and setting
goals to attain financial freedom. The guide is available
electronically, at no charge, by e-mailing budget@freedomfinancialnetwork.com.
Freedom Financial Network, LLC (www.freedomfinancialnetwork.com)
provides consumer debt resolution services through
its Freedom Debt Relief and Freedom Tax Relief divisions.
The company works for the consumer, negotiating with
creditors to lower principal balances due that can
often result in savings of up to half the amount owed.
Andrew Housser and Brad Stroh, the company’s
co-founders and CEOs, are semifinalists in Ernst &
Young’s 2006 Northern California Entrepreneur
of the Year Awards. Based in San Mateo, Calif., Freedom
Financial Network has served more than 7,500 clients
nationwide and manages more than $250 million in consumer
debt, offering an alternative to bankruptcy, credit
counseling, and debt consolidation.
### |
|
