San Mateo, CA (ContentDesk), April 27, 2006 — Freedom Financial Network, LLC, invites consumers to wrap up the month of April — National Financial Literacy Month — by going back to basics with the financial ABCs.With total U.S. consumer debt over $2 trillion and more than 44 million American households carrying average credit card balances of $8,025, its clear many Americans need more astute financial education, says Bradford G. Stroh, co-founder and CEO of Freedom Financial Network, LLC. Luckily, financial smarts are easy as ABC: A = Add it up. Begin by understanding what you have.

Then categorize your ongoing monthly expenses into fixed expenses (like rent or mortgage payments), variable expenses that are must-buys (food, gas, medicine), savings, and finally, spending money (for unexpected expenses and entertainment). Add those up to understand your cost of living.Subtract expenses from income. If that number (your bottom-line cash flow) is negative or does not help you achieve your short- and long-term financial goals, do a gut check and find a way to either increase your income or reduce your expenses.B = Budget, budget, budget.

A, your budget already is halfway done! At the beginning of the month, map out how you will spend your money in the coming month. Thats a budget. Dont forget to pay yourself first, Stroh reminds consumers. Be sure to add a category for savings, and guard it fiercely.C = Cash wont crash. If youre among the Americans carrying an average of 16.7 credit cards — and using them — put away the plastic. Cash out your spending money in cold, hard bills, and dont touch the plastic for discretionary expenses like clothing, movies, coffee, dining out or happy hour.

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