Everyone is talking about how and why this country’s economy continues to spiral out of control; what can be done to halt the decline; what is the best bailout/stimulus plan; who is going to fix this problem and how soon will things get better.
The search for answers and solutions seems to begin and to end with government, economists, banks and other experts. While some of the major players have changed, these are still predominantly the same folks who created many of these problems.
There are no sure, simple or easy solutions to the plethora of current complex financial problems facing this nation and the world. However, one thing that is certain is that we live in a culture in which what is good for the economy is anything but good for the consumer, so it is critical that each of us takes responsibility and accountability for our own financial future.
Our success or failure begins with our financial behavior. Understanding and embracing this fundamental truth is foundational to choosing to begin the journey to long-term financial behavioral change.
Hopefully, recent and future laws and stimulus packages will prove to help Americans find jobs, remain in their homes and begin the long road back to solvency. However, regardless of how successful any of these programs are or aren’t the time has come for each of us to be more proactive with our lives, in order to be more emotionally and financially stable individually and collectively. Taking control of your money and gaining control of your life may not be the easiest thing you have ever done, but I can assure you it won’t be the most difficult either. The choice is yours to make, but the alternatives are extremely limiting; so please choose wisely!
This newsletter is rich in content written mostly by Financial Social Workers from around the country. It is filled with thoughts and idea that all readers can benefit from and all professionals can use with clients. Enjoy!
Reeta
The Center for Financial Social Work is dedicated to helping men and women to feel less overwhelmed and hopeless by their daily interaction with the economy and by the financial situations they may be currently experiencing, and to being a TRUSTED RESOURCE which provides knowledgeable guidance and support in all economic times.
The Center provides free and fee based materials that contribute to LONG TERM FINANCIAL BEHAVIORAL CHANGE - because until and unless behavior changes - NOTHING changes!
Reeta Wolfsohn, CMSW, is the founder of Financial Social Work; she can be reached at 800.707.1002 or at
This e-mail address is being protected from spambots. You need JavaScript enabled to view it
CLICK HERE to register to have your own copy of this newsletter delivered directly to your inbox; be among the first to learn about special events and special pricing packages.
News from the Center for Financial Social Work
FSW Certification
Currently, Certified Financial Social Workers, Counselors and Educators/Coaches across the US and in one other country work with cancer patients, dialysis patients, HIV-AIDS clients, domestic violence, adolescent pregnancy, the EAP department of several national and international companies, the US military, veterans, schools, the elderly, families of autistic children, criminal justice, Departments of Social Services, the federal government, in private practice, etc.
Anyone who forwards this newsletter to 15 or more people inviting them to register to receive their own FREE copy will be entered in a drawing for $100.00.
The drawing will take place on March 31, 2009. The winner will be notified at the beginning of April and will be annouced in our next newsletter.
Technology allows our newsletter staff to see how many people someone forwards the newsletter to but not who those people are. You can use the FORWARD button at the bottom of this page or attach it to your own e-mail.
Additionally, any informaton you ever provide to the Center for Financial Social Work is confidential and will never be shared.
w In January, 2009, Reeta wolfsohn, CMSW, taught the first ever graduate level course in Financial Social
Work, at the University of Maryland School of Social Work.
wReeta will be teaching a 40 hour Certificate Class at the University of Maryland from April - October.
FOCUSING ON YOUR FINANCIAL HEALTH by Elaine Boltz, CEAP
This year, with the state of the economy and the increasing jobless rate, perhaps its time to focus on your financial health.
With many Americans heavily encumbered by credit card debt, now is the perfect time to find extra cash and put it to work for you. Have you ever found extra cash in a pocket or at the bottom of a purse? Whether it is a small amount or something more substantial, it is always a welcomed surprise. How would you like to find extra cash each month? It’s possible if you take a close look at your spending habits.
For one month, write down what you spend each day. You may be surprised to find where your money is going. How much was that morning cup of coffee or fast-food lunch? How much would you save by visiting your local library rather than purchasing a book you want to read? It’s surprising to see how much money you spend on day-to-day items.
After recording your expenditures for one month, analyze your purchases. Where can you cut back on your daily expenses? How much could you save by packing your lunch instead of eating out, brewing coffee at home and taking it with you in a travel mug, staying away from vending machines, buying food in bulk, only purchasing items when they are “on sale”? You can also save on transportation costs by combining errands to cut back on driving, carpooling with a co-worker or using public transportation or better yet – walk whenever you can instead of driving.
Other living expenses could also be cut. Raising the deductible on you insurance will lower your premiums; save for purchases instead of using credit cards; drop your premium TV channels, set the thermostat lower and wear a sweater; change your light bulbs to energy-saving bulbs, unplug appliances when they are not in use; purchase gently used items rather than new ones. Before making any purchases, ask yourself if this is a “want or a need”; then give yourself some time before actually making that purchase. Finally, be sure to always pay your bills on time so you don’t incur any late fees.
Now that you’ve found some extra cash, use it wisely. Deposit it in a savings account or CD to build up an emergency fund. Use it to pay off credit card debt. Take any extra bonus, raises and gift money and deposit that in your savings account. It may take some time and effort to change your spending habits, but awareness and careful planning can contribute to your financial – and emotional – well-being.
Elaine Boltz is an Account Executive for Employee Assistance Services at Life Management Associates, in Lancaster, PA. She is a Certified Employee Assistance Professional, a Certified Social Work Counselor, a Certified Laughter Leader and is certified in Critical Incident Stress Debriefing.
MAKING TAX SEASON INTO A VALUABLE LEARNING OPPORTUNITYby Elizabeth Lipscomb
With tax season upon us, as we collect all those receipts, expenses and losses we get a very real day to day view of what the past financial year was like. We are presented with the opportunity to think about why we spent our money in the way we did; this is the perfect time to examine last year’s financial behaviors and how they affected our lives. This evaluation and assessment process allows us to see both the positive and the negative spending habits we practice.
This process also provides us with a chance to observe what effect the events of the past year had on our finances. For example, I don’t know of one person who was anxious at any point last year to open their 401k, 403b, IRA or any other investment statement. There will be times that no matter what our goals start out to be, external factors will impact us. The impact may change how we handle our money but should not change the fact that we continue to work toward the fundamental goals of reducing debt and increasing savings.
It is very easy during difficult economic times to avoid dealing with finances, but this is when we should spend more time planning and learning, so we can preserve and protect what we have worked so hard for. We must be careful to face bad news and deal with it so it does not defeat us, even if that means seeking emotional support to be able to do just that.
When reviewing the previous year, ask yourself the following:
What did I spend my money on?
Why did I spend it on these things?
What motivated me to make those choices?
What motivated me to make unplanned purchases?
What major events did I not plan for that I could have?
If I took money out of savings, what caused this and should I have had more money in an emergency fund?
What would I like to spend on or save for in the coming year?
Reflecting on last year’s behaviors, expenditures and experiences will facilitate making better choices and plans this year. This information will help you to develop financial goals and month by month plans for attaining them. Your goals will be specific to you and increase the likelihood of success. When setting financial goals, consider the following:
Am I saving what I should to meet long term goals such as retirement?
Am I saving for short term goals, and do I have enough in an emergency fund?
What worked last year that I would like to continue this year?
What did not work last year that I need to revise and change?
What are major events I need to plan for this year?
What is the market environment that will effect how I spend and save this year?
Remember, according to the Center for Financial Social Work “spending keeps you where you are, saving takes you where you want to go.”
Elizabeth Lipscomb is an MSW, LCSW, ACSW and a Certified Financial Social Worker. Her background includes work in the financial industry and in the medical social work field. Elizabeth has recently returned to her lifelong home of Baton Rouge, Louisiana and is a regular and valued contributor to the Financial Social Work Newsletter.
More and more people are struggling with recession and foreclosure depression, homelessness, suicides, etc., so we've created the following thoughts and suggestions for helping men and women whose lives have been impacted by these events.
Foreclosure isn’t forever; foreclosure is the result of many circumstances, not just one event. Differentiate between the circumstances which were and were not within your control. Forgive yourself for the ones you may have contributed to and which became key factors in your own foreclosure; and release those which you played no role in and had no impact upon.
Live in the present and prepare for the future. The past is over and nothing can change it. Now is the time to begin planning and preparing for the future.
Grieve the loss of your home or of your job. It is real. Don’t allow this loss to prevent you from moving on with your life. Identify the first three steps to moving your life forward. If the steps seem too large and overwhelming, break them into smaller less daunting steps. This is the beginning of your new life plan.
Hold on to HOPE – there is always HOPE!
Choose to use this experience to your advantage by learning you credit and FICO scores and learning how to improve them at myfico.com. As you learn from your process, write down what changes you could have made, and remember those as you face the future.
Consider this new phase of your life as a journey into the next phase of your life.
Keep a journal to help you to process and to learn.
Know that you are not alone, even though it may feel like you are. Millions of others are experiencing similar challenges and sharing the journey into unchartered futures.
If you have children listen to what they say and to what they ask, but also listen for what they fail to say or to ask. Speak to them honestly but age appropriately. They too are experiencing the loss. Be aware that changes in behavior may be their way of expressing emotions that are confusing or overwhelming to them; do your best to be understanding and patient.
