Step 1 Know YOUR current financial situation

It is very important and sometimes tough to know exactly where you stand financially. We want to put a lot of emphasis on YOU, your numbers without comparing you to others and how you approach your situation when taking an assessment of your finances. This assessment should be in three areas.

1. Debt-to-Income Ratio (To get to this number by dividing the total amount of debt by the amount your monthly income. 35% or less: You are looking good).
2. Unexpected Expense or Emergency Savings (We recommend save all you can. However, the rule of thumb is to have three to six months’ worth of expenses).
3. Retirement - Regardless of Age (The moment you start to work begin making contributions into an employer 401(k) or pension, create a personal IRA, create a certificate of deposit, or any stocks and bonds you have/can designated for retirement).

Understanding how much you owe and considering how to eliminate it is very important. The wisdom to save money now and for your future needs such as buying a car or a house, emergency savings and retirement savings is priceless. Building a personal budget inside BudgetAction creates a momentum of debt reduction, debt elimination and savings.

Step 2 Develop Financial Goals

The main ingredient in becoming financially secure is setting short-term, mid-term and long-term financial goals. It does not matter that you work hard each day, if you aren’t working toward specific financial goals for your future, it is all for nothing. When life happens and things like medical bills, unexpected car repair, family sickness or you lose your job, the fact that you have established financial goals minimizes the impact.

Step 3 Alternative courses of action

There is bankruptcy, garnishment, law suits, collection agencies and debt management companies that are options. BudgetAction believes that it can guide its user on a difference course of action.

Continue the same course of action only if it is working Expand the current situation with smaller milestones and goals. Change the current situation to preserve what you have established. Take a new course of action once you have determined a new direction.

Step 4 Evaluate

Please realize financial freedom begins with a fundamental position of a series of your desires or goals consistently pursued. Six things must be evaluated for you to accomplish any real financial success.

Consider - *life situation *personal values *economic factors Assess - *risk *time value of money *opportunity cost

Step 5 Create and implement your financial action plan

This is what we are here for...BudgetAction, LLC

Step 6 Review and Revise all Financial Plans