Creating a budget could be the key to survival -- even prosperity -- despite the gloomy economy.
"Know where your money is going. Don't be senseless with your money," said Brooke Bryan, who, with his wife, Patty, will lead Financial Peace University at Midland Valley First Church of the Nazarene.
The 13-week money-management course will begin Thursday.
The course was created by financial adviser Dave Ramsey, who teaches the course through a series of videos. Financial tools such as budget forms are available on Ramsey's Web site, www.daveramsey.com.
To create a simple budget, make a list of all monthly expenses. Include fixed payments such as rent or mortgage, utilities, insurance and savings. Don't forget to include day-to-day expenses such as groceries, clothing and entertainment.
Every dollar of monthly income should be allocated on the budget form, so that income minus expenses totals zero.
The point, according to Ramsey's Web site, is to spend money so that it goes toward the things that are most important to the individual or family.
Ramsey, who has a TV show on finances, recommends giving the budget system three to four months to work properly.
The Bryans learned to make a budget when they took the course in September.
By creating a budget and sticking to it, and using other principles they learned through the course, the couple was able to pay off between $10,000 and $12,000 of debt in 10 months. Their current goal is to pay off every debt except their mortgage within a couple of weeks, and then celebrate with the class.
Bryan recommends keeping the checkbook balanced, using cash as much as possible and using credit cards sparingly. "I don't think a credit card is a bad thing if you can pay it off every month," he said.
North Augusta resident Jennifer Redd finished the course in May. She said she and her husband, Ray, wanted to learn how to live debt-free.
"It helped us to see where every penny goes every month and work on a budget together," she said.
She uses cash to buy groceries and suggests making a grocery list and sticking to it.
"Don't buy things you don't need," she said.
She said an added benefit of learning about the family's finances was that it brought her and her husband closer together.
"I think that before this class, we did not sit down and discuss the bills," she said. "Now we each know where our money is being spent so that we can better use the money that we have."
Bryan said the course costs $100 and includes all materials. Anyone interested in attending can show up for class at 6 p.m. Thursday.
For more information, call the church at (803) 593-3114.
Reach Lisa Kaylor at lisa.kaylor@northaugustatoday.com.
