1977-02 February IBEW Journal.pdf - International Brotherhood of ...

'Mith the ladies
Resolution No. 999
•
o The traditional clinking of champagne
gl3SSCS as the ball falls in cw
York's Time Square to ring out the
final minutes of the old )lear can only
be surpas~cd by the tradition of new
year's resolutions made the following
groggy morning. Diets arc begun with
carnest after a month of holiday over·
eati ng. ba~cmcnts and auies arc rampagiou~ly
aUAckcd in an allCmpl 10
di~card years of stockpiled memorabilia,
broken lOys, and old clothes.
It is a time to start anew, 10 reorder
our li\'c~ as we look forward 10 a year
where we'll have morc lime and
energy to do what is really important
to U~ because we finally "got out from
unda" :lnd arc running a smooth
Ship.
One rc!tOlulion most fen..-ntly vo .... cd
J.nd I'll bel most commonly resounded
on January (ir-iIS is the self-promise
to get our financial liYes in order nnd
pull ourselYc.s out of the red. An imp'Jrlant
decision indeed. but once into
the s .... ing of the ne .... year ...... ith
Christma'l bills rolling in. snow tires
to purcha,e. and income tax rorms
to file. the realization that a stable
financial life can be had becomes
quest ionable. In our cycr-complicating
SOCiCty. it becomes apparent that .... c
need a~si stance with our finances and
morc importantly we need 10 plan and
pattern ollr financial livcs just as we
would 11 ~choo l eOll r ~e or work
project.
B ecall~e Fcbruar) is thc month in
which many peoplc pull together their
bilK ~ avil1gs statements. and pa),
cheek 'Ituhs. in short. compile their
tinllncial picture of the previous )'car
in order 10 complete their tax forms.
it is ill .. o Il good lime 10 Icarn from
the mi,t'lkcs of the pllSl ),ear and
plan a money managemenl ~yslem for
the }cllr~ to come.
On the outset there arc certain
realiz.ltion~ ..... hich should be brought
to the fore .... hich will help )OU guard
agaimt some of the more common
pitfalls. The Iypieal American family
has recently acquired easy and opportune
purcha~ing powers. With the aspir:ulon'l
of American families alway)
cxce~-ding their income level. li ... ing
on credit has bccoml! a way of lifl!.
Dr. George Katona. author of T"~
A'/(I\'1 CmHllmpl;rm Sn('irll" e>;plain~
"
Ih:.t in our new aspiratlOns-cconom)'
a contrast 10 the necds-cconomy. mlln)
consumers' expenditures may be post_
poned or may be bunched at a gi\'en
lime therefore making the consumers'
willingness to buy far more important
than their ability to buy. What should
be kept in mind on this subjcct is
that if what you propose to buy will
appear insufficient tomorrow or will
be gone before payments arc com·
pleted, think seriously about whether
the product is a want o r a need item
and whether it would be beller to
purchase it after s3\ing eash for pay·
ment.
A money management s}stem, to
work successfully. should tell }'OU
what money is coming in during the
lear on a weelly or monthly basis,
whllt must be saved from this sum 10
pay the unavoidable bills and what
should be sa ... ed to guard for future
security. From there you should readily
sec what money is remaining
for day-to-day expenses such as groceries
and household ncce)sit ies. After
proportioning funds ror the need
items. your money s),stem should
show what remains fo r luxury and
semi-luxury items. It sounds impossible
at this point. and well it might
he for the first few months, but if
you keep in mind the fa ct thn t )'our
income wi]] never co ... er nil your wants
and decide that if you want somelhing
badly enough you'll save for it , then
you· ... e taken the first step to ..... ard
financial security.
Now with all the unpleasant rea hues
out of the wa)', )'ou can begin to set
lip },ollr records. First and foremost.
keep your records simple so that your
s}'~lem ..... orb. As ),ou fill out your tD-t
return. noting family income for the
pre\ious lear, make up a chart for
this year projecting family income
Ir both husband and wife work either
full- or part-time. include both net
earnings. don't forget interests, projected
profits from the !k11es of your
ca r, home. boat or camper, o r real
estate. and of course any returns from
income ta'( , Di ... ide the 10lal by 12
This is your total available monthl}
c;l~ h picture. Secondly, and again your
tllX form~ 1ll3Y help. project expenses
for the upcoming year Split your
cxp.:n)c, into three I:ategorio.'~ FI TS!.
una\oidable bills, such as mortgage
pa)ments or rent. insurance. real
estate tax . personal loans. and car
loans. Include household bills ~ u eh
as gas. electricity. and telephone
Charge account pa}ffients. education
loans, tuitions. medica l and dentdl e'<
pcnses not covered by insu ra nce. car
rcgislration. gas. parking expenses.
and commuter expenses, and an}
month I)' family allowances )'ou rna)
gi\e your children. and other bill~
which must be paid no mailer what
should be included in this category
The second category should be youl
saYings. A reasonable sum should be
decided on so that sa ... ings payments
arc al .... ays Illel. A good starting rang.:
is !5 percent of your IOtal income fOI
the rear. After a few month you
mBy decide 10 increase your saving'
to JO percent. For each calendar )ear
as a safelY cushion for emergencies_
II is ad ... isable to have two mon th ~'
salary in savings. Keep in mind even
if your monthly sum looks small. sa\
ing monthly adds up quick ly and .... ith
compounded interest. can be a fal
beller wa)' to save than depositing
\af)'ing sums throughout the year on
nn irrational schedule. Finally. l i~t
rour da y-to-day expenscs. A li ~ 'ing
of expenses from the previous year
from you r canceled checks is II good
WII)' to refresh )'our memory on easil)
forgollen day-to-day ex pense~ Th i~
list should include grocery e'(ll'!nse,
including liquor. cigarettes, personal
and household items. cosmetics. and
pet food. Household services. repairs
and maintenance. cleaning and heIr
should be noted. Furniture lind appli
ances. clothes, and small acccssorie\
and car repairs, new tires. bus lind
air fa res, and veterinary bills for peh
should go on this lisl. Also includr
magazine and newspaper subscrip
lions. entenaining, hobby equipment
upkttp of any recreational vehic1rs
vacations, and charitable contributions.
Divide your total expenses b)
12 showing you how much of )'OUI
monthly income must be set a~ide
for each of the three categories
At this point, let the truth be known
Your list of estimated expenses eom·
pared with your monthly available in-
IIEW JOllmol