But if you set priorities and develop a spending plan, you will be able to reach the goals you've set. Koesten and his associate Matt Starkey, who also is a certified financial planner, are among many members of the Financial Planning Association of Greater Kansas City who volunteer their time and expertise to create the free financial plans that Money Makeover participants receive in exchange for sharing their stories with readers. Not quite, Starkey said. Although spending plans and budgets seem similar on the surface, the spending plan approach is often seen as a more flexible way to manage cash. Cash management is one of the tools you use to do that.
Cash management means more than just being careful with money.
The Kimbroughs already are careful. They don't spend lavishly for anything and, with one exception, are well within what are considered fiscally healthy ranges for the types of things they spend for. The exception is their debt load, Starkey said. Payments on their mortgage, the student loans, two car loans and their credit cards come to 36 percent of their income, which Koesten and Starkey said is near where more serious credit problems would loom. Otherwise, nothing appears close to being out of line, Starkey said.