Managing finances

When the economy is tough, many people feel the strain financially. Gas prices climb, the cost of groceries increases, and as more people have difficulty getting by, they find themselves getting further into debt. More and more families are living paycheck to paycheck. Some families find themselves having to dip into their savings to make ends meet, which, as a result, pushes retirement further away.

When you find yourself getting stressed about your financial concerns, take some of these steps:

• Identify expenses that can be reduced or eliminated. Look at what you can do without.

• Find ways to save money, such as clipping coupons or shopping at discount outlets or second-hand stores.

• Create a budget. Start with the expenses you have to pay, such as mortgage or rent, groceries, utilities, etc. Some costs are necessary, but others can be reduced or eliminated. Consider getting rid of cable TV or a telephone landline to cut expenses.

• Put away the credit cards. The only thing a credit card does is get you further into debt. If your balance is out of control, sometimes you can work with the creditor to be placed on a payment plan. Non-profit credit counselors can help put you on a debt consolidation plan to repay your credit cards.

• Prioritize your future spending. Sometimes, the things you want to buy are things that you do not necessarily need. Instead of planning a costly vacation, consider trips closer to home or traveling in the off-season to save additional money.

• Check your credit report regularly with the three major national credit bureaus: Experian, Trans Union and Equifax. Know what is on your credit report and report any discrepancies immediately.