I know I have said it before and I will say it again.  If you want to be successful with money, you need to be able to save money.

Putting money aside for retirement, emergencies and specific goals is important and will get you on the road to financial success.  Let’s look at each of these factors in detail.

No one knows what will happen to Social Security, and really, Social Security shouldn’t be considered your only form of retirement.  Many companies use to offer their employees a pension plan that would pay them a portion of their salary when they retired.  These plans were called “defined benefit” plans because you knew what to expect when you retired.  More employers are providing their employees with a defined contribution plan which means they make a contribution to the employees plan (usually yearly) and when you retire, you have the vested balance available to you.

If your employer allows you to make a contribution to your plan – do it.  If they match a portion of what you put in, than put in as much as you need to in order to get the full match.  There are several websites that can help you determine how much to save to match the amount of money you want when you retire.  Just Google “retirement calculator” and take your pick of websites.

An emergency fund is also important.  This money should be liquid and easy to get to when you need it.  This will also cut your dependency on credit cards.  When I was a kid, people saved for that “rainy day.”  With the availability of credit cards, savings has been replaced by the available credit we have on our cards.  The balance on this account will rise and fall as it is used.  That’s okay, just strive to have enough in there at all times to cover three months of rent or mortgage payments.

Specific goal accounts are used to fund short and long-term goals.  You may have an account to cover a child’s education or an account to purchase a home.  It might be an account for vacations or furniture or holidays.  If you have several goals, you may want to have separate accounts for each goal.

I know that times are tough. I know that every dollar you make may need to go towards your current debt payments and living expenses.  That’s why it is important to review your budget to see what you can change to allow you to save.  Look for ways to save — not for reasons why you can’t.

For example, it’s tax season — why not use money from a tax return to open your emergency account?  Even a small contribution every paycheck can add up by next year.

Whatever you do, remember the old saying: where there’s a will, there is a way.

Even if you are not struggling with debt, the chances are you know someone who is. We can help families live well again. Contact an Aurora consumer credit counselor today: call 1-414-482-8801 or visit our website.

Some people are doing a whole lot of gambling inWisconsin. The Wisconsin Council on Problem Gambling 2011 Report stated that the average amount of debt for callers to the hotline last year was $157,000.

And that’s just the average amount of debt!  Some have less, while others have more.

I have always said that if I did needlepoint, I would embroider the following and hang it in my office:  Desperate People Do Desperate Things.  I believe that gambling beyond one’s means is an act of desperation.

Yes, gambling can be an enjoyable form of amusement — when it’s not affecting your financial wellness. When gambling goes from casual entertainment to an addiction, it doesn’t take long before things start spiraling out of control.  Like other addictions, gambling can destroy finances, marriages, careers and families,  cause people to hate themselves, and even lead to suicide attempts.

Gambling is not a realistic way to get rich nor is it a substitute for putting money into a retirement account.  It should be looked at as entertainment and no more should be spent than what would be budgeted for an evening of entertainment. It should be fun whether you win or lose.  Keep track of the emotions you feel when gambling and if you begin to feel like you are losing control, stop.  Think about those feelings and how they are affecting you.

Several years ago,  I had a woman come into my office wanting to pay off her credit card debt.  During our appointment, she told me the debt was incurred casino gambling.  We worked out a plan to pay off her credit cards and I told her that I could get her out of debt, but I couldn’t keep her out of the casino.  She told me that all she wanted to do was to borrow money from a friend and go back to the casino to win her money back.  I set her up with an appointment with a therapist, but she never went and she never returned my phone calls. The casino was filling a void in her life that was left when her husband died. I often wonder — and worry about — what happened to her.

If you are feeling that your gambling is out of control or you know someone in this situation, please contact the Wisconsin Council on Problem Gambling.  They can be reached at 1-800-Gamble5 (1-800-426-2535).  There is a lot of great information on their website, including this quiz:  Are you a compulsive gambler?.

Even if you are not struggling with debt, the chances are you know someone who is. We can help families live well again. Contact an Aurora consumer credit counselor today: call 1-414-482-8801 or visit our website.

You may have seen TV interviews with young adults in this age range, who are becoming very concerned about their current financial situation and what the future holds for them. You may also start seeing or hearing an ad campaign called “Feed the Pig.”

This isn’t an invitation to play “Farmville” with your friends on Facebook.  “Feed the Pig” is all about saving money and motivating you to do so.  It is geared to the 25-34 year olds who are also known as “career-builders.”  The Feed the Pig website offers lots of tips to save money.  You can even sign up to get daily tips on your cell phone.  If you feel like you aren’t saving enough, this website may just be your way of starting.

Its becoming harder and harder to save money. Prices are rising and wages are not always keeping pace.  If your plan is to put whatever is left over at the end of the month into a savings account, I think you might find that there isn’t anything left over at the end of the month to save.  You need to make saving money a priority and set up a plan to make sure it happens.

Probably the easiest way to save is to have the money taken out of your paycheck and deposited into a savings account.  If that’s not possible, look into having a certain amount taken out of your checking account and put into a savings account. We tend to live paycheck to paycheck. Your best bet is not having the money available to spend in the first place.

A few years ago, I had $50.00 taken out of every check and deposited in the Aurora Credit Union.  Last year, I took $2,500.00 out of the savings account and opened a one-year certificate of deposit at the credit union.  I have never taken money out of either account and when I got my statement the other day, the balance of the savings account and CD is almost $5,000.00. I don’t miss the money and so far I haven’t needed it.

I have another emergency account that I do put money in and use for emergencies – like the dryer that died and the garage door that needed to be replaced.  That account took a beating last year, but at least I had the money and didn’t need to use credit.

Whenever I teach a class on personal finances, I always tell the audience that if they want to be successful with money, they have to save money.  That’s really true for everyone.

Think about saving money in three categories:

• Retirement
• Emergencies
• Specific goals  

I’ll discuss these more in my next blog!

Even if you are not struggling with debt, the chances are you know someone who is. We can help families live well again. Contact an Aurora consumer credit counselor today: call 1-414-482-8801 or visit our website.

As we begin a new year, many of us will make resolutions or promises to improve ourselves.  Maybe you want to lose weight, exercise more, stop smoking or reduce debt.  These are all worthy goals — but most of them will be broken by Valentine’s Day.  Making a promise is only good if you have a plan in place on how to achieve those results.  So if your plan is to reduce your debt, how will you actually do that?

First, take a look at your whole financial picture.  Who do you owe, how much and what are the payment arrangements.  Is there any extra money in your budget to accelerate your payments?  Will you use some or all of your tax return to pay down debt?  Will you be able to put some money aside into a savings account so you won’t be dependant on credit cards?  If you have a partner who you share money decisions with, are they on board with your goal?  It’s not enough to just have a plan in your mind, you need to write your plan down and keep a journal as to how you are doing to achieve your goal.

Make sure your goal is achievable.  Have small measurable steps to achieve your goal.  Celebrate your achievements, but not in a way that will have a negative impact on your goal.  For example, if your goal is to save $10.00 a week, don’t celebrate by taking the money out of the savings account and going out to dinner.  Or if you lose 10 pounds, don’t celebrate by eating a carton of ice cream and a family size bag of chips.

Think of goals as a way to make your wishes come true.  Many times there are sacrifices on the way to obtaining your goals.  Saving money may mean brown bagging a lunch instead of eating out.  Losing weight may mean eating less carbs and more fruits and vegetables.

I believe that most everyone wants to be financially successful and that might mean different things to different people. It may mean the ability to meet all financial obligations each month.  Or it may mean having a comfortable savings account.  It may mean being totally debt-free.  Whatever it means to you is what you want to accomplish and it may take years to get there.  Unless you have a written plan that you follow, recording your successes and road blocks, it probably won’t happen.

It can happen.  And you can start today.

Are you ready?

Even if you are not struggling with debt, the chances are you know someone who is. We can help families live well again. Contact an Aurora consumer credit counselor today: call 1-414-482-8801 or visit our website.

Sunday evening my dear friend from St. Cloud called to tell me that her boyfriend had committed suicide.  She had been with him the night before for dinner and a movie.  He showed no signs of a change in mood or behavior.  She has more questions than answers and feels as if her world has turned upside down.

Yesterday when I was walking at the high school with my friend Joan, one of the basketball players took a hard fall on his back.  The emergency technicians had him totally immobilized for fear of a back or neck injury.  I am sure this student’s life has been forever changed and all we could do was say a prayer for him.

I always encourage people to save money for the unexpected – the car breaking down, an appliance that dies or a pair of glasses that gets stepped on.  It would seem that I am always thinking about the financial impact when something goes wrong.

The last few days have made me realize that we can prepare ourselves financially, but can we truly be prepared emotionally?  You can put money in a savings account, but you can’t bank emotional strength for a time when it is needed.

I have seen clients this month who are not only struggling financially, but emotionally as well.  The stress of being with family members who appear more financially successful and who give more expensive presents can be difficult for those family members who are having a difficult time making ends meet.

Unfortunately we equate money with success and the lack of it to failure.  Instead, we should be glad we have one another.  I have been making a fair number of employee assistance program referrals and hoping these contacts will be made.

As we come to the end of another year, let’s be thankful for what we have, share when we are able and hope 2012 is better for all of us.

Even if you are not struggling with debt, the chances are you know someone who is. We can help families live well again. Contact an Aurora consumer credit counselor today: call 1-414-482-8801 or visit our website.

Traditions can give us a feeling of connection, honoring the past and structure. I know some people have shared with me the inability of honoring traditions due to financial restraints.  Will you be giving up traditions this year because you don’t have the money to observe them?

My father was a career officer in the U.S. Army,  so we moved every couple of years and sometimes more often.  We always had traditions around the holidays. It was comforting, as a child, to know that certain things would be the same — no matter where we lived.

These traditions were not expensive, but memorable.  We had an Advent wreath with four candles on the table. Treats would include making cut out sugar cookies, pecan sandies and popcorn balls. On Christmas Eve, we would have a turkey dinner.  Once the dishes were done, we would gather for presents, but first my Dad would read the story of Christ’s birth out of the Bible.  As we got older, he would sometimes ask one of us to read the story.  After gifts we would play cards or games.  Christmas Day was waking up to stockings filled by Santa and off to church.

Now that my parents are gone, I am establishing my own traditions with my daughter and her family.  I like to call it “building memories.”  I have kept the traditions from my youth that I love and discarded some.

When you think about the expense of the holidays, maybe take a look at doing less, but doing what you truly love about the holidays.  I love singing Christmas carols with my grandchildren and occasionally we will change some of the words and have a good laugh.  I loved it when my grandson Ethan ran into the house and stood in front of the lit Christmas tree and said, “I knew it would be up”.  Presents are presents, but spending time with those you love is everything.

Many of us are choosing to do less during the holidays – cutting back on things that aren’t as meaningful.  I know I will never make a pecan sandy cookie, and yet I know my sister will.  I may never make another cut out sugar cookie, but I will always have an Advent wreath.  I plan to attend every Christmas program that my grandchildren will be in.  I will probably always get a little teary during Christmas mass – thinking of those who are with me and those who are not.

Don’t give into pressure, don’t overspend and don’t do what you don’t enjoy.  Make the holidays special because you are doing what you love.  I will.  If you have traditions you love or don’t love, please share them with me.

Even if you are not struggling with debt, the chances are you know someone who is. We can help families live well again. Contact an Aurora consumer credit counselor today: call 1-414-482-8801 or visit our website.

Did you get any really great deals or did you stay away from stores and malls?

I watched the news with interest Black Friday morning as shoppers were interviewed about the great deals they were getting.  I’m still thinking that there is nothing in this world that I want bad enough to camp outside a store over night. Although there were some fabulous deals on televisions and electronic items, I think my time is worth more than money.

So, now my question is to all you bargain shoppers, when you set up your shopping list with a budget, do you count the value of the gift or what you actually paid for it? So if you plan to spend $25.00 on someone and you get them a gift that normally sells for $25.00, but you get it for half the amount – are you done shopping for that person or do you spend an additional $12.50? It would seem to me that you would be done shopping, saved yourself $12.50 and still purchased a nice gift.

If you shop too early, you might forget how much you spent or how much you bought for someone.  As the holidays get closer, you start to question whether you spent enough on that person. Then you end up buying more – just in case.

That’s why, I believe in making a list of the people you plan to buy for, what you plan to give them and what you plan to spend. Once you have purchased for that person, go back to your list and write down what you bought and how much you paid. It’s easier to keep track from a list than looking at the wrapped gifts under the tree and trying to remember. Trust me, the older you get, the more you need to rely on that list.

Whether you are shopped out or haven’t started, do try and follow a budget during this time of year. If you are using credit cards, keep track of what you purchased and make sure everything matches up when you get your statement. Try not to charge more than you can pay off in 2-3 months and it’s even better if you can pay it in full when the bill comes.

Remember that family and friends should love you for who you are — and not for the gifts you give them.

Even if you are not struggling with debt, the chances are you know someone who is. We can help families live well again. Contact an Aurora consumer credit counselor today: call 1-414-482-8801 or visit our website.

Is this craziness or just me who thinks a store opening at midnight to lure Black Friday shoppers is a bit over the top?  Some are even talking about opening at 10PM on Thursday.  How many of you will be out shopping in the middle of the night?

I know many people swear by the deals they get on Black Friday.  My sister is one of them. Somehow, I just can’t see the need to stand out in front of a store waiting for the doors to open and rush in for the “must have” item of the year.

Here are a couple of tips for you whether you are shopping on Friday or over the next few weeks:

• Make a list of planned purchases and set a hard spending limit.
• If you travel between stores, lock your purchases in the trunk where they can’t be seen.
• Make sure you get your credit/debit card back after each purchase.  It’s easy to forget if you are in a hurry or there is a crowd at the checkout.
• Double-check your receipt that you received the correct price.
• If paying in cash, make sure you receive the correct amount of change.
• If using an ATM machine make sure no one is watching you enter your PIN.
• If shopping when it is dark, park your car in a well lit area.
• Don’t take all of your credit cards with you – only the ones you will be using and write down the numbers of the cards you are taking and leave the list in a safe place at home.

Where do I picture myself at 12:01 a.m. on Black Friday? I picture myself sleeping in my bed at midnight with a tummy full of turkey and dreaming about the Packers win over the Lions.  My husband will be snoring beside me and our cat sleeping between us.  Yes, that’s how I picture the ending of Thanksgiving, not standing in the cold and waiting.  Of course, I have taken advantage of other sales to purchase half of my gifts already.  The key to purchasing gifts too early is remembering what a great hiding place you put them in.

So, will you be out shopping in the middle of the night or up early on Friday to hit the stores?  Are there certain items that you are after?

If you are a Black Friday shopper, what is the best deal you have every purchased?  I can’t imagine that I will ever be convinced to shop on this day, but I am curious why others do.

Happy Thanksgiving to all!

Even if you are not struggling with debt, the chances are you know someone who is. We can help families live well again. Contact an Aurora consumer credit counselor today: call 1-414-482-8801 or visit our website.

Click on the photo to hear a special video message from Kathryn.

Will you be traveling somewhere? Cooking for family and friends? Going out to eat? Is there a better smell than a turkey roasting in the oven? How about a leftover turkey sandwich on Friday?

Many families have traditions surrounding the holidays – something you can count on to be familiar.

One of the traditions at Aurora Family Service is to provide the groceries (including a turkey and roasting pan) for a Thanksgiving meal that will feed 3,000 families in Milwaukee. We call this tradition “Family-to-Family Thanksgiving.”

Thanks to Aurora Family Service, 3,000 families will be able to fill their home with the smell of a turkey roasting in the oven on Thursday and a turkey sandwich on Friday. Starting on Friday, November 18th, groceries will be delivered. On Saturday volunteers will sort the groceries into 3000 shopping bags.  On Monday, November 21,  organizations and families will come to Aurora Family Service to pick up their preordered Thanksgiving groceries.

I have worked at this event for years, and I can honestly say, the gratitude of the families is overwhelming.  So, if you are fortunate enough to have a family and a full table of food to celebrate this holiday, consider yourself blessed. If you have a few extra dollars to spare, please consider making a secure online donation to our Family to Family Thanksgiving fund. It costs $35.00 to feed a family of four, but any amount of money is appreciated. You can make a donation in memory of someone who has passed or in honor of someone still with you.

A gift from your heart will help warm the hearts of a family in need.  Because our Moms are no longer with us, my husband and I donate in memory of these two wonderful women who made their share of turkey dinners over the years.

This Thanksgiving, I will be watching the Packers and Lions play football to the smell of turkey roasting in the oven, and I’ll be thinking of those 3,000 families who will have a shared experience when they sit down to eat.  No matter what challenges they’ll face as a family for the rest of the year, they’ll have that day to celebrate together.

I wish you all a Thanksgiving with good food, good family, good friends, good memories and good leftovers.

Even if you are not struggling with debt, the chances are you know someone who is. We can help families live well again. Contact an Aurora consumer credit counselor today: call 1-414-482-8801 or visit our website.

Apparently, many people are.  Consumer confidence fell in October to the lowest level since March 2009, according to an article by the Associated Press.  However, the article states that how we feel about the economy doesn’t always reflect in how we spend money.  In September, people increased their spending on retail goods more than any month since last March.  I wonder how much of the money spent had to do with children going back to school.

A private research group called the Conference Board measures consumer satisfaction by the way shoppers feel about business conditions, the job market and the next six months. Two and a half years ago,  the index measure was at 26.9.  It was up in September to 39.8.  When the index reaches 90, it will signal that the economy is on solid ground.  Somehow I think we won’t see that number any time soon.

As we enter the last two months of the year – also the coming holiday season – what will consumers do?  What will you do differently or will you stay the course?

These are a few of the things I know:

• More retailers are offering layaway plans for shoppers, which I think is a great idea.  Pay-as-you-go rather than putting items on a credit card and earning interest if you can’t pay it off.
• Student loans will be coming due for students who graduated in May.  If you are not working at this time or have a low-paying job, contact your student loan lenders and ask to defer your loans or if you can set up a modest repayment plan.
• Toymakers are making fewer toys in anticipation of a weaker shopping season.
• Due to a poor peanut crop, peanut butter will have a huge increase – some saying 35%.  (I’m hoping Santa reads this and puts a jar of it in my stocking.)
• Some people will spend more than they planned and some people will spend less — and some people won’t be able to spend at all.

This might be a good time to look at your spending over the past ten months and set up a plan for the last two.  Are you better off than you were six months ago? Where are you now, versus last year at this time?  Most importantly, what will you do differently in 2012, based on what you’ve learned in 2011?

It’s all about planning to stay ahead.  We don’t plan to fail, we simply fail to plan.

Even if you are not struggling with debt, the chances are you know someone who is. We can help families live well again. Contact an Aurora consumer credit counselor today: call 1-414-482-8801 or visit our website.