Five Ways to Feel Better About Your Finances

The ups and downs of the economy are causing ups and downs in the moods of most Americans. The American Psychological Association's newly released 2008 Stress in America survey reports eight out of ten people say the economy is a significant cause of stress. So if you're frustrated because you feel you have no control over the big financial picture, the Illinois CPA Society suggests you might feel better if you take a few proactive steps to control your own personal finances:
   
    --  Work out a budget. Even if you've never made or followed one
        before, do it now. Write down all your sources of income and your
        monthly expenses. Creating and following a budget gives you a sense of
        order about your finances; you should know exactly how much money is
        coming in and how much is going out.

    --  Track what you spend. Get down to the details. Jot down everything you
        spend money on from the morning cup of coffee to the movie you watch at
        night. Look for surprises -- what's adding up to more than you
        thought -- and consider where you can cut back. Even picking one
        category to work on -- transportation, gift giving or entertainment --
        can make a difference.

    --  Take inventory. Chances are many of us have more "stuff" than
        we need -- things we haven't made use of or didn't even
        realize we had around the house. Start searching for items you
        don't use or forgot you had. Sometimes it's just a matter of
        out of sight out of mind; maybe there's no need to buy more
        candles, batteries or decorations. And maybe the coat that doesn't
        fit or the blouse you never wore could save someone else money. Consider
        giving such items to a charity or try selling them through a resale
        shop.

    --  Share before spending. Consider borrowing, sharing, or swapping things
        with family, friends and neighbors rather than buying new. For example,
        before buying luggage, ask yourself if you travel often enough to need
        it or does a friend have a piece you can borrow. Keep in mind
        what's old or unused to you is new to someone else; what you get
        from someone else is money saved. Items like lawn equipment or tools
        could be shared among neighbors.

    --  Save on a regular basis. It doesn't matter how much or how often,
        but save something. Having some money set aside will give you a little
        peace of mind. Calculate what you will save by making a few changes,
        whether it's bringing your lunch or not buying a new jacket, and
        set aside even a portion of it.

And in these tough times don't forget to keep your sense of humor and ask for advice when you really need it. CPAs have the credentials, expertise and up-to-date information to help you navigate through to a stronger financial future.