They're probably never going to force you to scrub the latrine, hike for miles in the driving rain or call you a maggot, but personal finance boot camps promise to use some tough love to help you gain control over your finances and debt once and for all.
These boot camps come in the form of online or face-to-face classes, exercises and daily check-ins, but what they all have in common is no-excuses, take-no-prisoners approach. Just like a regular military boot camp, your usual excuses will be laughed at and met with an on-the-spot challenge to cut your personal spending by 10% more -- right now. Classes are usually led by one or two hard-nosed "commanders" who challenge you to live within your means, stash the credit cards, cut spending and stick to a budget by confronting you with the cold, hard truth that the numbers can't hide.
Some boot camps are run by financial planners and investment experts, while others are run by banks and credit unions for their customers. Even nonprofit community groups, from YMCAs to churches, are getting into the act.
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The ideal recruit
For people who have grappled for years with their debt -- be it of the credit card variety or any other kind -- boot camp may be a last resort.A boot camp will usually provide "recruits" with very specific tasks to allow them to learn about their past mistakes while developing skills to handle their finances in the future. Reeta Wolfsohn, CMSW, the founder of the Center for Financial Social Work believes the best boot camps combine increased awareness with knowledge, skills and ongoing support to create long-term financial behavioral change.
Stacy Francis runs a Bounce Back Boot Camp for women, in which she provides participants with weekly coaching and group mentoring calls, worksheets and materials. Campers are required to provide her with weekly progress reports that show the good, the bad and the ugly.
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Campers will probably be asked to bring credit card and bank statements, a list of assets and debts -- all of them, no matter how small -- and a credit report and score from the major credit bureaus, along with pay stubs and past tax returns. They'll also be asked to write down everything they spend each day, down to quarters for the parking meters.
Some boot camps also include classes on the nuts and bolts of personal finance and credit management, such as reducing debt and avoiding scams, but most campers are already familiar with the basics of personal finance and instead need someone who will, well, kick a little butt.
Regardless of the format, the philosophy behind the boot camp is that once you see it in black and white, you can't avoid the truth. And you'll have no more excuses.
Pass or fail
Like all self-improvement programs, the program is only as good as what you put into it, despite having an instructor bark in your face and directly confront you about your greatest financial shortcomings. With that said, once you graduate from the program and are on your own, the voice of your drill sergeant may ring in your ears for months. And that's a good thing, especially when you find yourself tempted by that big-screen TV or those pricey shoes.Because there are really two parts to these boot camps -- attending the workshops or classes and implementing what you learn -- the success rate varies. "For individuals who simply attend and don't put their newfound knowledge into action, the success rate is very low," says Travis W. Freeman of the Foundation for Personal Financial Education. He runs a financial boot camp to corporate and community groups in St. Louis. "For people who implement what they've learned right away, the success rate can rise to around 90%."
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