best practices for budgeting - partners healthcare · bestpracticesforbudgeting u li b ki d li bill...

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Best Practices for Budgeting

Presented by Michael Shuman, VP/Lending Medical Area FCUPresented by Michael Shuman, VP/Lending Medical Area FCU

Best Practices for BudgetingU li b ki d li bill

Best Practices for Budgeting Use online banking and online bill-payer Set-up recurring payments for monthly payments that

don’t change: installment loans: student loans, mortgages, car payments personal loans rentcar payments, personal loans, rent.

Set-up all other payees for online bill-payer for variable expenses: credit cards, lines of credit, phone, electric, cable, gas bills, etc..cable, gas bills, etc..

Get into the habit of setting up the payment when the bill arrives(or check the bill online). Some vendors, like cable and cell phones, will allow you to set up recurring

di dpayments on a credit card. Always pay credit issuers on time. Pay as much as you can

on revolving debt to keep your credit score higher.Graduate Medical Education Graduate Medical Education


Best Practices for BudgetingBest Practices for Budgeting

Budget: Income should exceed expensesp Keep a diary of expenses Prioritize housing utilities loan payments Prioritize housing, utilities, loan payments Manage cash flow as a surplus to pay down

debt and invest for future income retirementdebt and invest for future income, retirement, etc…

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Best Practices for BudgetingCredit Scoring

Best Practices for Budgetingg

Credit scoring is based on the basic premise that you use credit wisely and sparinglyyou use credit wisely and sparingly.

Use credit wisely: Pay on time, never late.U di i l d i l K l i Use credit wisely and sparingly: Keep revolving lines of credit (credit cards, HELOCs, ODP) as low as possible and limits high.p g

Use credit wisely and sparingly: Apply for credit only when you absolutely need to borrow.



Best Practices for BudgetingBudget Adjustment Possibilities

Best Practices for BudgetingBudget Adjustment Possibilities Lower housing payments (different place,

roommates, move in with family), y Lower phone expenses Remove or reduce cable/satellite TV/radio Remove or reduce cable/satellite TV/radio

services Sell an expensive car for a less expensive one Sell an expensive car for a less expensive one

and consider alternative transportation options (Zipcar, public transportation)p p p



Best Practices for BudgetingBest Practices for Budgeting

Budget Adjustment Possibilities : Pay down/pay off high-rate, non-deductible y p y g ,

debt (personal loans, credit cards) as fast as you can to improve your credit score. This

ill h l ith f t b i dwill help with future borrowing needs.



Best Practices for BudgetingBenefits:

Best Practices for BudgetingBenefits: Feel better and have less anxiety about

moneymoney Set a good example Build a better financial future Better credit Be in control of your financial destiny!



Best Practices for BudgetingThank you!Best Practices for BudgetingThank you!

Michael Shuman, VP/Lending, Medical Area FCU. , / g,617.278.5615

[email protected]



best practices for budgeting - partners healthcare · bestpracticesforbudgeting u li b ki d li bill...

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