Priorities key to good budget

Mr. Owens, vice president of finance for the hospital, said, "People think if volume goes up, income would rise, too. That's not always the case in health care."

Families and individuals may not experience the intensity that Mr. Owens does when preparing a personal budget, but they may find themselves in a financial parallel: A salary increase should ease the mortgage payment or a credit card balance, but an unexpected auto repair or home improvement project can throw a budget off.

Think it through

"Figure out what your income is," he said. "Look at your earning potential -- your 'net' after taxes. Then establish a monthly budget that pays the bills, offers some savings and allows for a little recreation or the unexpected."

Next, families should look at expenses and determine how much they pay each month compared to what they budgeted; then they can review income and expenses.

"See how they compare to your budget," Mr. Owens said. "It's important to review your budget each month to see how you're doing."

Couples and money

"When I talk about what's important in a marriage -- compatibility, communication and teamwork -- I remind people that if they don't have a strong relationship and somewhere down the road their relationship is challenged with financial burdens or other stressful dimensions, conflict and fragmentation works their way in."

Many families rely on two incomes for basic living expenses or to support a lifestyle to which they have become accustomed. With the soaring costs of higher education, parents even find themselves making financial plans for the college days when their children are in elementary school.

"I advise people to take a close look at their life priorities," the priest said. "Financial success is not the most important dimension in life. The things that are important -- things like family, love and relationships -- don't cost a lot of money. Just time."

(02-07-02) [[In-content Ad]]