If your family is floundering financially, it may be time to

1. Your budget should be tailored to your needs, values and priorities, with special consideration given to personal goals.

2. Be realistic when establishing spending categories and quarterly expenses (e.g., taxes, car insurance, holiday purchases, clothing, etc.).

3. Let your budget determine your discretionary income (money left over after living expenses) before you decide to pursue additional installment debt.

4. Credit obligations should not exceed 15 % of your take-home pay.

5. Saving 5 % or more of your take-home earnings is a necessary element of any budget. Remember . . . the unexpected can and usually does happen.

6. Involve all members of the family when determining and prioritizing goals, and when deciding the amount of income to be allotted for each goal.

7. Keep your records simple.

8. Remember, you are the only one who can maintain your budget. Buying without careful thought and planning can and will destroy your spending and savings plan.

9. Don’t panic if your expenses exceed your income. It may be necessary to revise your budget by reducing spending as much as needed. If your expenses are less than your income, have fun allocating funds for those future goals such as the purchase of a home, a car or a much-needed vacation.

10. Nonprofit counseling services such as the Consumer Credit Counseling Service provide free budget guidance to help you calculate, implement and stick to your budget.

Look for more information on personal financial management at Consumer Credit Counseling Service of Greater Washington Inc.

“Our income seemed more than adequate when we retired. But now we’re spending more each month than we receive.”

Hopefully you have not said that about your retirement income. However, for many couples and individuals, more-than-adequate income at retirement time may become much less adequate during the next few years.

We are living longer. Those who retire at 65, 66 or 67 with barely enough income to get by each month are going to be in serious trouble in 10 years. Being 75, 76 or 77 is no longer old, but it’s difficult to go back to work at that age. So let’s look at four positive ways to avoid that scenario.

Manage your mortgage

First, get rid of all debt before you retire. Paying interest on anything but a mortgage is not wise. And I strongly encourage you to pay off the mortgage, if at all possible.

Still, you have to consider the pros and cons. Sometimes your interest income on investments is a higher percentage than the interest rate on your mortgage, so you may want to continue investing. You may, however, prefer to pay off the mortgage, but don’t use money that you need to live on or deplete your cash reserves to do that.

Paying off the mortgage may not be a priority or seem possible, but at least talk to a mortgage broker about refinancing to get a lower rate. Then measure your monthly savings on payments against the cost of refinancing. You may save money.

If you’re still living in a large home you owned when you’re family was younger, this might be time to sell. Then take your equity and pay cash for a smaller home. Consider this example: Paying seven percent on $100,000 mortgage costs you $7,000, more than $580 a month!

Another option is to make extra principal payments before and during your early retirement years to reduce the debt before inflation catches up to you.

Tame your taxes

Don’t let your tax appraisal district indiscriminately raise the valuation of your home. (Some states won’t allow this for school taxes.) If it happens, go before your appraisal board and argue your valuation. Mortgage payments plus ever-increasing taxes can be devastating to a retirement budget.

Read the valuation notice when it comes. It will explain how you can protest. When you go, be armed with facts. Check with real estate agents in the area to get sale prices on recently sold homes. Don’t let the appraisal board use asking prices as the criterion.

Delete debt

Other than your mortgage, no debt should be acceptable in a retirement budget. Pay off the car and don’t borrow to buy a new one. If you can become a one-car family, do it. Take the money from the sale of the second car and pay off any notes.

Avoid leasing vehicles. When you are over 70, will you want to see the lease expire on your only car and find you cannot afford a new lease? Or do you want to own your car, even if it has 100,000 miles on it?

Credit card debt is never acceptable. If you are not disciplined enough to pay your balance on time each month, cut your cards up and throw them away. The credit card companies hate people who don’t carry a balance, but that’s the kind of hate you should love.

Don’t pay an annual fee for the privilege of carrying a platinum or gold card. The benefits and prestige are not worth $60 to $100 a year.

Budge and save

Set up a budget and stick to it. Hopefully you’ll find in your early years of retirement you have extra income. If so, set up an automatic savings. Have a conservative mutual fund or money market fund draw the excess automatically from your checking account each month. Then, when the outgo catches up the income, you’ll have a nest egg to fall back on.

Don’t leave excess cash sitting in your checking account. Put that money in a safe place that pays a fair interest rate. Don’t leave checks sitting around for weeks until you go to the bank. You’re losing interest. Always be conscious of interest, both on what you pay and what you save.

Avoid clubs that promise to save you money. Chances are you’ll never save as much as the annual fee costs.

Shop for the lowest prescription prices. I asked five pharmacies to quote their prices. I was shocked at the differences. One popular drugstore had the highest prices, higher than the grocery pharmacies and much higher than the discount store pharmacy. Ordering prescriptions by mail may be the lowest price you will find.

Get rid of that debt, use interest as a friend, look for the best prices, don’t buy the Brooklyn Bridge, and chances are, your retirement income will last as long as you do.

You’ll be glad you did.