Frequently Asked Questions


Here are some of the most frequently asked questions posed to Lynnette Khalfani - The Money Coach™

Q:  How can I stick to my budget and avoid going deeper into credit card debt in 2007?

A:  Too many people put themselves on unreasonable budget "diets" - depriving themselves of spending money on anything beyond their bare bones needs. Then after a month or two of deprivation, they go out and splurge. A better way is to create a budget that's flexible and realistic. Prioritize your finances so that you pay your necessities first, but also be sure to make room in your budget for the occasional treat or for something that you enjoy. Also, don't make the mistake of omitting savings from your budget. Lots of individuals fall into the debt trap because they have no cash cushion set aside. And that's when some unexpected bill comes up or some emergency happens. If you have some money set aside for the proverbial "rainy day," when unanticipated expenses occur, you won't have to resort to paying for them with credit cards. But the only way you'll develop a cash cushion is to make "Savings" a part of your regular budget - right along with other necessities like "Food," Mortgage/Rent" or "Utilities."

Check back weekly for more money questions and answers.

Lynnette Khalfani is not a registered investment advisor and the information provided on this web site should be considered educational in nature, but it is not a substitute for legal or professional financial advice. If you believe you need the help of a Certified Financial Planner or other investment counselor, please seek a qualified professional.