Argus Financial Ltd. (AFL) has designated October 6-12 as the first Financial Planning Week in Bermuda. The company is joining organisations in the US, the UK, Australia and elsewhere in celebrating this event every year. In the second of a series of articles to run this week, composed by AFL financial planning experts, follow up with the Couples.

Making what you have count more - the Couple family increase the value of their assets and reduce their debt. As part of Financial Planning week we have been following the Couple family, a composite family created by Argus Financial Ltd., as they take charge of their financial wellness.

Invest in assets that will add value. Mr. Couple inherited the family business from his dad and has worked extremely hard to build on the reputation for excellence his dad built. Mrs. Couple has used her book keeping skills to make sure that the business accounts are up to date and has significantly reduced the outstanding receivables. An unexpected benefit to the business is Mrs. Couple's natural customer service skills. She has managed to increase sales to existing customers and acquire significant new business. The result, however, is that Mr. Couple is working 14 hour days and is not sure how much longer he can keep up the pace before the quality of his work begins to suffer. The Couples evaluate what they can do with the business. If they purchase a $15,000 piece of equipment it would cut about 20 percent of the labour needed to complete a job. Even with the productivity gains with new equipment, they do not think they can accept all of the potential business they have been asked to quote on. Mrs. Couple puts together a business budget and together they decide that if they hire their part time help full time they can accept all of the potential new business. This will increase their total income by 25 percent, even after the additional expenses such as the increased payroll tax and health benefits. While it is a calculated risk, they are pretty confident they will have enough business to cover these two investments.

Reduce debt that does not add value. Mrs. Couple has been able to save about $600 per month for a down payment on a house but she is not sure if this is a smart move. When she created her home budget (yesterday's article) she budgeted a monthly expense to make the minimum payment on each of her three credit cards. One card has about $3,000 left on that great holiday they took two years ago, and while they have stopped "therapeutic shopping trips", she still has $2,000 left to pay off from her last trip, and finally there is a $1,000 balance from last Christmas.

The Couples take a closer look at their credit card debt and are astounded at how much interest they are paying. They decide that before they save for that down payment they will work to pay off their credit cards first. Once they eliminate their non-productive debt, they plan to save and pay cash for discretionary items. They plan to go into debt only for assets that will add to their overall financial health such as equipment for their business and eventually, their new home.

By taking control of their finances, the Couples are putting themselves in a much stronger position. Mrs. Couple has just gone through a risk assessment at work and decides that they need to look at their personal risks.

Look for Financial Planning for a Family in Bermuda Part 4, when the Couple's will prepare for the unexpected in life by planning for it now.