Men & Money

Take Charge of Your Finances

The unemployment rate is at its highest level in 14 years, and many economists are predicting the jobless rate will climb to 8% percent in 2009. Those number can seem abstract until you get the sense that a layoff may affect you or someone you love. So if the specter of unemployment is looming in your future, take charge now while you still have a job and a steady paycheck. Follow these tips from MSNBC and Today show financial contributor Laura Coffey:

• Create an emergency fund. This needs to be your top priority – set aside enough money to cover basic living expenses for three to six months. You need to be able to cover your rent or mortgage, buy food and repay debts during your unemployment.
• To build this emergency fund – move onto priority number two: Slash your spending immediately! Monitor your expenses for a month to see where you can realistically cut back. Some biggies to consider: Holiday spending. Resolve not to go nuts this year. Give your time to people, not gifts. It’s your most precious resource anyway. You can also cut back on child care. Are there grandparents or siblings who could watch your child? If not, maybe you could make the switch to a low-cost preschool program offered by the public school district. You could even consider applying for a scholarship at your day-care facility. Also, cut back on car payments. For the time being. Could your family survive with one car instead of two?
• Use your credit cards with great caution. A credit card can keep you in denial about your true financial situation, and accumulating debt will only add to your stress.
• Talk about money with your partner. A lot of times, one partner is in the dark about what’s going on financially. Maybe you pay all the bills, so your partner has no clue what’s in the checking account. Being unaware of the reality of your financial situation is a fight waiting to happen. So make sure you both know exactly where you stand, and get on the same page as far as financial priorities and goals.