Fiscal management starts with budget
Counselor provides financial guidance, advice
by Jessica Johnson, reporter

    Creating and maintaining a budget is essential in financial maintenance, a South Campus counselor advises.

   “One of the first things toward managing money is knowing where your money comes from,” Clifton Dobbins, assistant professor of psychology, said, “and knowing how much you have coming in.”

   Dobbins emphasized good money management skills.

   “People tend to operate with a sense of not really knowing how much they have to operate with,” he said.

   After determining the source and amount of income, one must next develop a budget, the key to financial management, Dobbins said. A budget enables people to examine the output of their income and prioritize financial responsibilities.

   When creating any budget, one must include all possible expenses, Dobbins said. He detailed the many expenses that should be factored into a budget and suggested including a miscellaneous expense in case of an emergency.

   Saving is a positive result of money management and often the goal when a personal budget is created, Dobbins said.

   “If you put $2 in a savings account,” he said, “it’s more than you had.”

   Dobbins referred to checking and savings accounts as “put-in-take and put-in-keep.”

   He explained that checking accounts should be used for paying bills and other expenses. A savings account should be considered hands-off, except for emergency situations.

   For those students interested in investing, Dobbins recommended they speak with an investor personally to determine their options.

   Dobbins also discussed using credit counselors versus declaring bankruptcy.

   The two processes are not the same since consulting a credit counseling service can add points against consumers on their credit files, Dobbins said.

   Other than budgeting finances to make them work for the individual, Dobbins reminded students to look for bargains.

   Since businesses want to beat the competition, consumers often can negotiate themselves a deal, Dobbins said.

   “Before you plan your next vacation, talk to an agency. Airlines, cruises and vacation agencies often offer free tickets with the purchase of several others,” he said.