Ring In 2012 By Prioritizing Finances
The new year prompts promises to do everything from drop a few pounds to save some pennies.
Stashing away cash for that rainy day --- or sunny vacation --- is easier said than done, people like Bola Babatunde have found. She knows she should have a savings plan going in her personal budget, but try as hard as she might, she just cant seem to do it.
Shes hardly alone.
I like to tell people that they need to have anywhere between nine months to a years worth of their annual (expenses) in a savings account, in case something happens, City Treasurer Stephanie Neely told the Chicago Citizen.
Sounds good, Babatunde says. But for some its a stretch.
Its just not enough to go around and everything keeps going up, the 35-year-old single, certified public accountant said. I am constantly trying to budget and re-budget.
The bare necessities often keep people barely making, Americans lament. Gas, utilities, food and other costs continue to rise. Gas prices nationwide were highest ever in 2011, with the Chicago market often leading the way with the highest prices in the nation. Industry watchers indicate that 2011 gas prices were at least 30 percent higher than previous years.
Food prices were reported to be at least 2 to 3 percent higher.
Last year, Cook County rolled back a portion of the penny tax implemented during the Todd Stroger administration. But the tax on cigarettes, water, beer and other popularly consumed products increased.
Even when you budget to the exact amount, youre hit with sticker shock on simple, necessary things, Babatunde said.
Neely said she knows household dollars are stretched but saving is still feasible.
It is a recession but people have priorities that are out of whack, Neely said.
For Bola, Cadbury chocolate is a must-have indulgence. For others its getting their hair and nails done several times a month. And then there are those who would perish the thought of going without the latest in fashion, gadgets and technology all the while thinking they dont have enough money to set aside.
Neeley says no such thing, even though Americans are are bombarded daily with spend, spend, spend.
Im not talking about doing without, Im saying get your priorities together, she said. If you track your spending, most people can find a way to sock away a few dollars each month.
The treasurer lays out a plan on the citys website for setting a budget in the new year and going forward. At www.chicagocitytreasurer.com, individuals and families can get help with creating a budget and learn more about saving. She said even kids can be involved in tucking away money.
We have to teach our children that they have choices they can make with their money besides spend, spend, spend, Neely said.
One recommendation on the site to kick start saving is to pay yourself first.
Babatunde said she has tried that in past and found it very hard to do. She said setting money aside for your nest egg before doling it out to bills and other obligations just doesnt work that way.
To help her save, Babatunde set up an online account where access to cash wasnt so easy. She admits that it worked --- for a while. But the unexpected that Neely pointed out could happen did happen to Babatunde. Though her savings was depleted, she said, having money saved up did help her through the unexpected expenses.
Neely said thats the whole point.
by Rhonda Gillespie
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