Issue link: https://read.dmtmag.com/i/74289
Follow the Leader Get tips you can apply in your life by following the progress of the 2012 Project Money contestants as they work toward financial health at projectmoney.summit- creditunion.com today! Getting on the Right Track Think your finances are a lost cause? Think again. Local programs (and simple steps) offer plenty of hope and guidance for steering you back on track By Emily Leas Last May, Penny Duane was wading through the debts most of us are familiar with: A car loan, home mortgage and stu- dent loans for her daughter. Life had done a number on her finances, and somehow along the way, little by little, it piled up. Her savings, meanwhile, sat dormant, never seeming to grow. Fed up with the imbalance, Duane re- Summit Credit Union in Lake Mills served as Duane's coach, leading her step by step through the process of setting her finances straight. "We start with [figuring out] where can solved to grab the reins and steer her de- railed money situation back on course. But would it even possible? The answer from local experts is a re- sounding "yes." No matter how dismal the circumstances have become, there's always a way to get a grip on your finances. Looking for guidance, Duane turned you cut. Is it the cable? Is it coffee? Is it get- ting your nails done? We call it phantom money," Johnson explains. "It's money that's going out and you don't realize you just spent $10 or $20." Together, Johnson and Duane combed to Project Money, a local program and competition created by Summit Credit Union that pairs financial advisors with real people struggling with real money problems. After digging through a pile of 150 hopefuls, Duane was selected as one of four "teams" in the competition. The mis- sion? To see who could shrink their debt and grow their savings—a sort of "Biggest Loser" for those carrying a load of finan- cial woes. Mary Johnson, branch manager of over Duane's spending habits, income and bills to get a clear picture of her finances. From there, making short-term changes gave way to establishing long-term goals— giving Duane a sense of control she hadn't felt in years. As Johnson points out, whether you Business Initiative Corporation allows participants to set financial goals and per- sonal budgets. Miller acknowledges that for many, sim- ply taking the first step is the most difficult hurdle to overcome. After making her financial plan—and trudging ahead daily—Duane's efforts paid off. In just seven months, she paid down her debts by $6,779 and saved more than $6,000, ultimately being crowned the winner of Project Money. Even sweeter was the realization that she could have control again of her financial life. "I just want to make sure people know sand and think financial trouble will just go away. But you really have to face it head on," echoes Amber Miller, project direc- tor of Wisconsin Saves, another local pro- gram offering individuals the chance to set their finances straight. The free online pro- gram of the nonprofit Wisconsin Women's work with a financial professional or go it alone, it's a process everyone can—and should—do at any time. "Sometimes we stick our head in the that no matter your income, you can do it," Duane says emphatically. "It gives you so much self-esteem and pride in yourself." What the future holds now is an open door for getting ahead—and having the chance to live the life she wants today. Case in point? After over a year of improving her spending and saving habits, Duane is looking forward to checking a big dream off of her life's bucket list. "Barbara Streisand, New York City, 30th row with my daughter!" she says with excitement. Almost as rewarding as seeing Babs? The trip is already saved and paid for. Deal With Debt To keep debt from dragging your down, Colleen Johnson, Certified Financial Planner® and vice president Paint a realistic picture List all of your debts—each outstanding loan and every credit card—and write out the balance, the interest rate, and the minimum payment for each. List them in order from the highest interest rate to the lowest. Then add up the total cost of your minimum payments. 58 BRAVA Magazine at Johnson Bank Wealth Management, offers tips for facing debt and finding financial independence Utilize your budget Add the total minimum payments you need to meet each month to your budget. Allocate your money so that every minimum payment on your debts is satisfied, as are all of your fixed expenses. This will help you pay debts, current bills and de- termine what you can spend in other areas of life. July 2012 Don't forget your savings Building emergency and retirement savings doesn't have to take a back seat to paying down debt. Strike a balance in your budget. The amount you set aside for each varies depending on your situation. Just remember that paying down debt can work in concert with your other financial goals. Your Way Finding