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THE CHAMPION, THURSDAY, DEC. 26, 2019 - JAN. 1, 2020 • PAGE 13
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COUNTYWIDE
Expert advises starting new year with 2020 financial vision
Part One - Why many struggle with personal finances
by Kathy Mitchell
Those who have not
made financial planning a
priority and would like to
change that are not alone,
according to financial
literacy instructor Michelle
Alexander, who said it’s
quite common for people
to fail to make a sound
financial plan.
“This important life skill
was probably not taught
during their early years,”
she said. “Many of us never
received personal finance
training when we were
young, nor did we receive
how-to instructions with
our first paycheck. Money
is very seductive when you
start earning your own and
it feels powerful to buy
whatever you like, until you
cannot.”
She commented that
schools focus on skills need
ed for employment, “but
what about this important
life skill?” she asked. “When
and how does it get shared?
Unfortunately, it is usually
later in life when we hit a
rock wall or rock bottom
with our finances, that we
seek help in this area of our
lives.”
Those without finan
cial planning skills tend to
develop such bad habits
as abusing credit or debit
cards, according to Alex
ander. “Overspending can
have negative side effects
especially if overdraft fees
are incurred which further
depletes funds.” Credit card
debt is easy to get into since
it’s “buy now, pay later,” she
said. “Debit cards just re
quire a swipe, so you never
see the money actually being
used.”
Alexander said people
who mishandle their fi
nances may tend to try a
quick fix that ultimately can
make the situation worse.
She describes it as “putting
a band-aid on the situation
that eventually turns into a
visit to the financial emer
gency room. The sad part is
that when payday does come
and there’s still no plan, the
Michelle Alexander
overspend process starts all
over again. If the account
was already overdrawn,
the payday funds are now
reduced because of the over
draft fees and no bills have
been paid yet.”
Having an overall fi
nancial plan and monthly
budget, she said, can be the
constant reminder of where
income should go so the
earner doesn’t “get lured
into the emotional here and
now and forget about to
morrow’s plans. Once you
begin to abuse credit or debit
cards, whether you feel it is
justified or not, the slippery
slope has already begun and
can take years to recover,”
she warned.
Alexander said young
adults just starting careers
often give little thought to
financial planning, reasoning
that they have their whole
life ahead of them and there
is time, while older adults
who have not planned prob
ably think it’s too late.
“The list of priorities for
someone in their 20 s more
than likely differs from those
of someone in their 30s and
older. The 30-something
person is more likely to be
thinking about settling down
in life and career. This may
be the time these individuals
start seeking personal finan
cial advice to plan for mar
riage, family, or furthering
their education. As they age,
they are likely to continue
planning, but the focus may
turn more to retirement sav
ings particularly after their
children are off to college or
have gained full-time em
ployment,” she continued.
“If individuals have nev
er prepared for their finan
cial future and are now seri
ously close to retirement—
between 60 and 65—they
may decide it is too late and
not bother to start a plan at
all. As long as you are above
ground, it is never too late to
start some kind of savings.
Do not let your age fool you
into thinking it is too early
or too late,” she advised.
“I’d rather have $500 saved,
than zero dollars any day.”
Alexander noted that
Social Security is a source
of steady income but is
not enough to meet most
people’s needs. “A retiree
shared with me that their
income basically dropped
to half in retirement. If you
were already struggling with
your earned income, imag
ine what your life will be
like with retirement income
that has now decreased by
50 percent and is only paid
out monthly.”
People often fail to make
financial plans because they
lack knowledge, fear restric
tions or feel they do not have
enough income to manage,
Alexander said. “Whatever
the earnings are, the funds
still need to be planned for
and managed. High earn
ers get into financial trouble
just like everyone else. We
live in a society where just
about anything can be had
and many feel that they
should not have to deprive
themselves, so ‘planning’
and ‘budgeting’ become
bad words. I have heard the
phrase ‘treat yourself, don’t
cheat yourself’ many times
and wonder what these peo
ple are really treating them
selves to with this short-term
high.
“You should be treating
yourself to a financial future
that does not require you to
work in retirement unless
you want to do so. Even
then, you probably won’t
want to work a 40-hour
week. If budgeting and plan
ning feels restrictive during
earning years, just think how
restricted retirement will
feel. If Social Security ends
up being the only source of
income, where is the treat in
that?” she asked. “There are
so many resources available
today to help individuals get
on the right financial track;
but because money is still
such a personal and emotion
al issue, some fail to seek
help for fear of judgment.”
This is Part One of a
two-part series featuring
advice from Michelle
Alexander, a financial
literacy instructor who
said her mission is to help
individuals change their
financial lives for the better
She has conducted financial
literacy seminars at DeKalb
County libraries and at
business association and
community meetings. Among
the organizations she has
volunteered with are Project
Take Charge, a reso urce for
DeKalb County residents
needing financial assistance
during challenging financial
times. Part Two - Steps to a
solid financial future—will
appear in the Jan. 2, 2020,
issue of The Champion.
PUBLIC NOTICE
The City of Stone Mountain is currently accepting
letters and/or resumes to fill vacancies on the
Planning and Zoning Committee. Please refer to
the following link of the City website; http://www.
stonemountaincity.org/departments/planning_
and_zoning/index.php for more information on
the committee. All appointments to the Planning
& Zoning Committee shall require a review by the
governing authority, a nomination by the mayor and
confirmation by the city council.
All interested parties should forward letters or
resumes, by January 15, 2020 to: Mayor Patricia
Wheeler, Stone Mountain City Hall, 8/5 Main Street,
Stone Mountain, GA 30083
PUBLIC NOTICE
The City of Stone Mountain is currently accepting
letters and/or resumes to fill vacancies on the
Historic Preservation Commission. Please refer
to the following link of the City ordinance; https://
library.municode.com/ga/stone mountain/
codes/code of ordinances?nodeld=PTIICOOR_
CH5BUPRRE_ARTIIHIPRCO for more information
on the commission. All appointments to the Historic
Preservation Commission shall require a review by
the governing authority, a nomination by the mayor
and confirmation by the city council.
All interested parties should forward letters or
resumes, by January 15, 2020 to: Mayor Patricia
Wheeler, Stone Mountain City Hall, 8/5 Main Street,
Stone Mountain, GA 30083
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