Think of savings as a way to grow your profits. Without savings, you will be forced to rely on credit if you hit a rough patch
RICHMOND, Va. (PRWEB) September 17, 2008
"In a credit crunch, banks without cash reserves fail," said Bruce McClary of ClearPoint Financial Solutions. "The same is true for consumers. Rule number one: Your expenses must not exceed your income."
Flimsy accounting practices don't work any better at home than they do in business, warns McClary, a financial specialist. "Budgeting is more than just numbers on a page. It is a lifestyle. Track what you spend and keep credit cards in check or you'll quickly find yourself under water," he said.
By focusing on their bottom line, consumers can protect themselves from a liquidity crisis, advises McClary. "Think of savings as a way to grow your profits. Without savings, you will be forced to rely on credit if you hit a rough patch," he said.
Borrowing heavily against your assets is a risky proposition, warns McClary. "If you are already leveraged, you may need debt management advice from a credit counselor," he said.
ClearPoint Financial Solutions national nonprofit consumer credit counseling service certified by the National Foundation for Credit Counseling and a system-wide member of the Better Business Bureau. ClearPoint's financial specialists offer no-cost advice to help consumers learn how to budget, pay down debt and plan a secure future.
ClearPoint Financial Solutions, Inc.™ is a national nonprofit consumer credit counseling agency headquartered in Richmond, Virginia. ClearPoint is a system-wide member of the Better Business Bureau (BBB), and a member of the National Foundation for Credit Counseling (NFCC). ClearPoint's mission is consumer financial health through education. Visit http://www.ClearPointccs.org or call 877-465-2227.