PHILADELPHIA (KYW Newsradio) — For many in the Delaware Valley, these are the toughest financial times they have ever experienced. Job loss, pay cuts, and trying to make ends meet in the face of rising food and utility costs are worries facing many.
A local financial expert spoke to KYW Newsradio about how to not only keep your head above water now but prepare for the future.
"First and foremost, if you are struggling financially, you have to run toward the problem and not away from it, because as we know, worrying has never changed anything," said Bob Manning, executive director and financial advisor at Morgan Stanley Wealth Management.
Manning advises people sit down with their bank statements and paycheck stubs, and figure out what they have coming in every month, even if it is less now, and what they're spending.
"Then you add it all up and divide by 12," he said. "That includes holidays and birthdays, and gifts and everything. And then you know exactly what is going out. Then when you compare the two, you know where the shortfall is." Manning said people will be surprised to find spending on items that are not absolutely necessary.
"And then start to address debt, like credit cards," he continued. "Highest interest rate, get them down. I think the best thing you can do is include your family and those closest to you in the process. That way everybody is working toward the same goal and in a short period of time you will know you are gaining control. That is the most important thing, gaining control of your finances. Then you can look at investment."
Manning also suggested paying yourself first, even if it is only $5 or $10 a month toward savings. Mortgage companies and utility companies are also offering forbearance options now. Don't be afraid to make the phone call and ask.