With the economy in the shape it is in lately, people in society appear somewhat distraught. Many people are trying to sell anything and everything.

Unfortunately, most people may not even know how to properly manage their personal finances. They might grasp the concept that income is money coming in and an expense is money going out; yet, they could have difficulty handling the money they have. Keeping up with the amount of money needed for adventure, shelter and food could be quite simple. However, there are more expenses that consume a person’s income in such a short period.

Those who are wise with money should know how to create a budget. They also should realize that money could be needed for emergencies. They must allow extra money to be allocated for school supplies, clothes, or entertainment. These people are aware of how finances can impact all areas of their lives. Maintaining a positive credit report, establishing a savings account, and paying their bills on time are crucial to effective financial management.

Simply having a job these days doesn’t seem to be enough. Most families require two paychecks and still there needs to be a set plan for a detailed budget. The first step to creating a budget is to identify pertinent goals. Financial goals must be transformed into personal goals.

Then, you must determine your exact income and expenses.

 Using your net income, identify your fixed expenses, such as your monthly mortgage or car payment. Remember that any flexible expenses can be modified. The hardest part for most people seems to be the task of letting go of money wasters.

A debt, or money you owe, can sometimes feel defeating due to the fact that interest is added to the principle of any large debt purchased as a result of a loan. Therefore, it is important to keep your net worth positive. If you are in debt, and struggling to make ends meet each month, avoid creating additional debt, prioritize what you owe, and apply extra cash to an additional debt if you can.

For any individual or family battling financial difficulties, the truth is, financial burdens create other hardships. Once you feel the pressure or strain on the family income, you become stressed and this produces a negative impact on your body and mind.

Remember that simply ignoring stress — or what causes it — does not make it go away.

Develop a plan and set goals that will benefit your health and your future financial status.

Dr. Sonya Rogers is a certified counselor who lives in Daphne.

Her column twice monthly appears in the Daphne Bulletin and Spanish Fort Sun.