Financial Readiness: Preparing for BRAC (Base Realignment And Closing)

The recommendations for military base closings have been released and the news is not good. If the recommendations are accepted, you will lose your job. So what do you do? Hope for the best, and prepare for the worst.

There is a benefit to this situation. Unlike many individuals who suffer the loss of employment, you have advance warning. This is an opportunity to prepare yourself and your family. Use this time to create a financial plan.

The importance of a budget can not be stressed enough. A budget is a tool that helps you track your income and expenses, giving you a snapshot of your overall financial picture. Know where your money goes. Identify areas where you can cut back. Knowing your financial obligations will be critical while planning for the loss of income.

The next piece of the planning puzzle is net worth. Your net worth is what you would have leftover if you sold all of your assets (what you own) and used them to pay off your liabilities (what you owe). This will require sitting down and making a list of those assets and liabilities. This may sound like an overwhelming project, but it is important that you know exactly where you are financially. Knowing your net worth is essential for planning for an emergency such as unemployment.

Ideally you will have a rainy fund that will cover six months of living expenses. If not, don't panic. Start putting a portion of your paycheck aside each month. Putting away a little money now will provide a financial cushion if you don't find a new job right away.

The last piece of advice is start paying down your credit card debt. Getting rid of credit card payments will help your emergency fund go farther. It will also save you money on interest, money that you can add to that fund.

You will find forms on this website to help you complete a budget and net worth analysis as well as set financial goals, such as setting up an emergency fund.

It is never easy to find out you are losing a job. But you do have an advantage over the worker who gets a pink slip on Monday and watches the factory get boarded up on Friday. You have time. Use this time to get control of your finances so that you will be prepared. And in the event that your base is spared, you will have significantly improved your financial picture.

Leslie Linfield is a national expert on adult financial literacy education and the consumer credit counseling industry. She has advised governmental, educational and non-profit organizations alike, and she has been quoted by the New York Times and Wall Street Journal as an expert on budgeting and consumer credit. She has also presented literally hundreds of seminars and lectures on personal financial management.

---

Planning Your Financial Future

Millions of people give a lot of thought to financial... Read More

How To Place an Online Order for Checks ? It is Easy as 1-2-3

If You Have an Existing Account and 5 Minutes, You... Read More

Developing a budget? Watch out for Those Budget-Bursting Gremlins

If you've developed a household budget to get your spending... Read More

Saving Dimes Can Go a Long Way

On the other hand, there are those people who are... Read More

Understanding Your Finances Can Give You Power And Choice

What is finance and what do you need to know?... Read More

Improve Your Professional Image Using Address Labels

One of the simplest ways to improve your professional image... Read More

Adverse Debt Levels Blight UK Consumers Personal Finances

Debt levels are at an all time high in the... Read More

How to Attain Your Dreams on a Single Income

If you recently became a single parent and see your... Read More

Reporting Identity Theft

Would you know what to do if you suspect that... Read More

Save Your Money, Dont Give to Charity Scammers

**If it's Spam, it's a Scam!- If it sounds too... Read More

Improving Your Financial Position

If you want money you need to learn how to... Read More

Single Mother Resources Directs You Towards Success

As a parent you are bound to face a few... Read More

10 Quick And Cheap Ways To Cut Your Heating Bill

When you received an energy (heating) bill last winter, were... Read More

Do You Really Need the Power of Money Management Software?

I have been a loyal user of Quicken(R) for more... Read More

How to Draw a Personal Budget that Works

Many people spend their little income haphazardly without any planning... Read More

Risky Business: You May Not be as Daring as You Think

I thought I was through with exams when I finished... Read More

Ways to Save Energy and Slash Electricity Bills

1. Lighting & Light Bulbs Install low energy light... Read More

How To Survive The Grocery Shopping Blues

If you are the normal consumer, then you've probably experienced... Read More

10 Money-Saving Tips

1. If you have your haircut every 3 weeks, try... Read More

Debt Management ? More Ways to Save on Gas Consumption

The price of gas continues to climb, and with continued... Read More

Check Fraud and Verification

Before buying personal or business checks you should inform yourself... Read More

If I Had a Structured Settlement, I Would Use It to Pay for Gas

Has anyone been to the gas pumps lately? Soon $3... Read More

10 Tips to Make Sure Your Financial Budget Will Succeed

You've analyzed your past expenses, put them into spreadsheets, loaded... Read More

Budgeting -- The Critical Flaw That Causes Most Budgets to Fail

Budgeting. It's a word we're all familiar with. Everyone knows... Read More

The Wonderful World Of Address Labels

Ever wonder where address labels come from? Avery® is perhaps... Read More

How To Free-Up 10% to 15% of Your Income

Would you be interested in freeing up 10% to 15%... Read More

How to Obtain a Non ChexSystems Bank Account Without Being Scammed

Predatory lending exists in the mortgage industry. It's typically when... Read More

Creating A Household Budget

Creating a budget can be a very difficult task. Although... Read More

Do You Know What Tomorrow Will Bring?

I've been sharing the following idea with people for a... Read More

The Good and the Bad of Money Management

Good money management needn't be difficult. In fact, there a... Read More

Saving Money On Gasoline For Your Automobile

The gas that we fill our tanks with every week... Read More

Retirement Income Needs---Less Than You Think?

It is widely written that you need 75% of your... Read More

Simple Ways to Save Money

Things are so expensive these days. We seem to be... Read More