Debt Consolidation Credit Counseling In Phoenix

As we begin 2009, the U.S. economy is in ruins. It has become, as a result, increasingly more important to protect your assets, as well as your identity. In order to make 2009 a better year for your money in these harsh economic times, here are some ideas and suggestions to get your financial health in line.

1. Understand the difference between wants and needs. Being financially stable depends on you being a responsible spender. For example, paying your mortgage is a need, buy new clothes is a want. Being frugal is pertinent. Cut out coupons from the newspaper and pay attention to sales on things that you frequently need.

2. Put away 6 months living expenses into a Savings Account. Estimate 6 months of living expenses by totaling your monthly bills, gas, and grocery expenses and multiplying by 6. Put this amount of money into a savings account. Start by simply putting a little away every month from your paycheck. This will be your rainy day fund and should only be touched in an emergency. If you absolutely must dip into it, make sure that it is for an emergency and that you replace it as soon as possible.

3. Begin paying off your debt. Start with the highest interest bearing loans, like personal loans and credit cards and begin paying them off. These you should take care of BEFORE you begin saving any money. The interest accrued on these loans can be staggering over time and will save you money in the long run if you pay them off first.

4. Protect your Identity. Identity theft has become the crime of choice in recent years. It costs victims on estimated 6 billion dollars a year to pay for identity theft. You can protect your money and your identity with a service like Life Lock. Life Lock is a service that guarantees protection of your credit backed by $1,000,000 to you if they don't. They help to reduce the amount of credit card offers you receive and pro-actively monitor your credit.

5. To keep you from dipping into your savings unnecessarily, put extra money into CDs, money market accounts, or other securities that are harder to access. That way, you won't be tempted to spend all that hard saved money.

6. Write out a budget and stick to it no matter what. This is so super easy to do. Label several jars with categories like "eating out", "movie night", or "entertainment". Every payday, put $40 in each jar. That will be your allowance for that particular category. When the jar runs out, you have to wait until the next pay day to replace the money and your budget for that item. This sounds tough, but it can really be of benefit to your finances.

The status of the current economy is awful, but that isn't a secret. Therefore, we must look for ways to protect ourselves and our financial situation so that we don't need the kind of financial assistance that some of the big companies have needed. Don't let any of that nonsense happen to you this year. Keep a budget, look for deals, and spend smart!

If you are cautious with your money, you will not need a bailout in 2009. Hey, maybe you may be the one bailing someone else out.