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Keep Track of Your Credit Report

A strong and accurate credit report is one of your most important financial assets. Not only is it a clear picture of your indebtedness, it can reveal problems or discrepancies which could bar your access to further credit. Repairing a problem now is always easier than attempting to do it after you have applied for a mortgage or a car loan. However, without a definite plan of attack, our budget goals will probably be doomed.

Like diets, many of us have started on family budgets only to see them wither away with time. Yet, leaving finances “to chance,” as many families do is a sure-fire path to letting them get out of control. So, if your family is floundering financially, it may be time to put pen to paper (or fingers to keyboard) and make up a family financial plan. You will probably need a program which will not force you to turn your life inside out. Here are some tips you should keep in mind when developing your family budget.

- Your budget should be tailored to your needs, values and priorities.

- Be realistic when establishing goals and spending categories.

- Involve all members of the family when determining and prioritizing goals, and when allocating the amount of the family income for each goal.

- Weigh carefully all the pros and cons before you decide to pursue additional installment debt. Credit obligations must not exceed 15 % of your take-home pay.

- Develop a savings or investment plan. Saving 5 % or more of your take-home earnings is a necessary element of any budget. Remember, the unexpected can and usually does happen.

- Do not panic if your expenses exceed your income – it may be necessary to revise your budget and cut your current expenses as much as needed.

(compiled from http:// womentodaymagazine.com/money/familybudget.html)

Exercises

    1. Paraphrase or explain the following sentences concentrating on their underlined parts. Think of a good translation of these sentences into Russian.

1) Many feel that it will be too restrictive and limiting.

2) … by keeping track of your expenditure, it allows you to balance your checkbook and concentrate on those items that bring the highest reward, both financially and personally.

3) That means getting a handle on your habits – both thinking and spending.

4) … we want to trim enough from our current spending … to begin a college fund.

5) Instead, we look around our homes and take inventory of items that we paid too much for, … non-functioning items…

6) In addition, our accumulation of things not only “eats” into our family budget, it often clutters our life with junk...

7) Wants are those things that enhance … our family life.

8) But to delude yourself into believing that a want is a need and busting your budget in the process is a recipe for financial disaster.

9) Concentrate on a plan to reduce your debt exposure.

10) If you are like millions of other Americans, your credit card debt is likely excessive and the biggest problem.

11) If too much money gets spent, the shortfall gets added to the debt load.

12) … it can reveal problems or discrepancies which could bar your access to further credit.

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