THE OKLAHOMAN | NEWSOK.COM
&A WITH TROY E. JONES
REALIZING POOR HABITS IS FIRST
STEP TO FINANCIAL FITNESS
Q: What is the first step to
getting financially fit?
A Creating a budget is
where most people want
to start when putting
together a financial fit-
ness plan, but you can't
create a workable budget
without having the right
information. | recom-
mend reconciling and
evaluating your expen- Troy E. Jones isa
ditures first. Start with Certified Financial
alist of your necessary Planner Ambassador
payments and compare and CEO of Access.
those with your actual Financial Resources Inc.
spending over the last in Okdahoma City.
few months. You likely
will note substantial
differences. From there, identify a realistic budget
and make a commitment to stick to it. Don't look ata
budget as a restriction but rather a tool to maximize
where your dollars go. This will allow you to spend
more on the things that matter. It’s also important
to know that creating a budget takes planning and
coordination with your spouse and other members of
your household.
Q: Why is staying within a budget so hard for many
people?
A: Too often people build budgets without taking
inventory of themselves and their behaviors. It’s
best to take stock and then develop smart habits to
improve your finances and stick to your budget. For
example, if you know you lack self control with credit
cards, cut them up. You can't use them if you don’t
have them. If you struggle to meet basic payments,
round up to the nearest whole number and pad your
large expenses when you create your budget — if your
car payment is $375, list it as $400 on your budget.
‘Q: Aside from lacking a budget, what other poor financial
habits do you see?
‘A Spending too much on adult children or other
family members, which jeopardizes someone's long-
term financial security. Also, a weak area for many
parents is enabling their children’s spending. Instead,
insist that your kids live with a budget they help
create. This will improve your bottom line and helps.
seta positive example for children, reinforcing valu-
able, lifelong lessons.
(@: What are some good habits when it comes to retire-
ment planning?
A: Take full advantage of any existing benefits
package, such as a 401(k) or retirement plan. For a
401(k), make sure to maximize your investment by
matching your employer's contribution. If you operate
within individual funds, review your 401(k) account
periodically. Establishing a dollar cost averag-
ing arrangement, investing set amounts at regular
intervals regardless of the financial climate for a
new account such as a Roth IRA or 529 plan, also can
increase your savings.
PAULA BURKES, BUSINESS WRITER: