Your Secret Weapon... A Budget
For many, the word 'budget' immediately sends shivers down the spine. Why in the world would anyone need or want to budget their money? First off, budgeting your money does NOT mean you are poor, or are in need of financial assistance. You'd be surprised to know how many considered to be "middle class", regularly budget their money in order to make the most of what they have. Secondly, designing and implementing a budget does NOT take a Harvard doctorate degree requiring hours upon hours of tedious work. What is a budget? Simply put, a budget helps you to track your income and keep your spending habits in check over a certain period of time, allowing you to reach specific goals. Why Start A Budget There are many reasons why a family may want to implement a budget. These "reasons" can be labeled BUDGET GOALS. The reason(s) you are budgeting your money. It is imperative that you actually determine what your GOALS are before actually designing a budget plan.This is what you will be striving for. Answer the question - 'Why do I want to start budgeting my money?' To save for a new house or car? Saving for your childrens' college education? What about an early retirement? These are all very important goals that many of us will have to face at some point in our lives. And these are some of the goals that can be tackled through the implementation of a budget. ** Summary - Set Your Goal(s) ** Cash Flow Analysis It is now time to determine the amount of "cash" that comes into your pocket every month, and the amount that leaves your pocket every month. This is one of the most important steps in planning your budget, for it allows you to get a whole perspective of your current financial situation. At the same time, analyzing your "cash-flow" allows you to actually see where your incomes are coming from and how it is being spent. Remember, this does not have to be done professionally nor does it need to be time consuming. In addition to that, try not to track every single penny that you spend. You'll drive yourself crazy. A budget should not frustrate you to death. Start with your income(s). It's best to take it a month at a time so you get a clear, concise view of what you make on a monthly basis. Don't forget to include any benefit or interest payments you receive. After you have an idea of the TOTAL amount you receive monthly, it's time to add up the expenses you pay every month. Generally, you can group most expenditures into two categories - fixed and variable. Fixed bills - mortgage, car, insurance loans, etc... Variable bills - utilities, phone, car maintenance, entertainment, food, etc... It is really important that you tally up EVERYTHING that is paid out monthly. That includes all taxes, social security, 401(k) (retirement funds), and any other deductions that you might have taken directly out of your paycheck. It works best if you write down ALL the expenses/bills that you pay monthly. If you are having difficulty remembering what is paid every month, take a look back through your financial records, checkbook or bank statements for more accurate numbers. Remember, you do not want to spend hours and hours, sweating over this. Budgeting should not be like another 9-5 job. The quicker and easier this analysis process is, the more you will be willing to go through with it. ** Summary - Write Down ALL Incomes and Expenditures ** Review Your List Now that you have your list of incomes and expenditures, it is time to review what you have written. Look and see what bills/expenses can possibly be lowered. Do you notice any excessive spending areas? Any bills you know for sure that can be lowered? This is where you might have to make some sacrifices. Is your dream of a brand new BMW worth giving up your restaurant outings three times a week? These are the choices you are faced with when you must decide how you are going to reach your goal(s). Start out small. There's no need to become a first-rate miser overnight. That's hard to do! Take things a step at a time. Implement one money saving strategy a week, or month. Remember though, you decide at how quickly you accomplish your goals. ** Summary - Review And Decide Where To "Cut-Back" ** Track Your Spending In the real world, you are faced with thousands of advertisements and gimmicks begging you to 'buy their product'. Buy what you must, just keep in mind your budget. In order for accurate records, track as much of your spending as possible. Simply save all the receipts you get from your purchases.This is important because you need to tally everything to see how much money you saved at the end of the month. ** Summary - Keep Track Of The Money You Spend ** Compare Results & Modify Now it's time to find out if all your hard work has paid off. Were you able to lower some bills? Finding out how much you saved is the best part of budgeting. It's exciting! This is what makes the whole budgeting process worthwhile. Stick with your budget! Modify your spending habits to try and lower bills bit, by bit. You'll soon forget about the whole budget idea, and just see it as a game, where you try and save as much money as possible month by month. You can find more money saving articles to help lower your bills at:
http://www.SavingSecrets.com/tips.html ** Summary - Compare and Make Necessary Changes For Increased Results ** Conclusion The hardest part of the whole budget process is starting one. Once you set your mind to implement a budget, and take the time to formulate a written agenda, the rest falls into place. Budgeting requires some small sacrifices. Changes in lifestyle. Changes in spending habits. Be creative and have fun saving money off your bills. You are doing this for YOU, to accomplish your GOALS, so stick with your budget plan and your will be rewarded! ** Summary - Start YOUR Budget and Accomplish Your Goals! ** Gregory Thomas has been writing effective money-saving tips for SavingSecrets.com for over six years. Hop on over and you'll find FREE money-saving articles, a monthly newsletter, and even a FREE Ebook download just for stopping by! http://www.SavingSecrets.com
Related News
Six financial gifts that let you do more with less this season - MarketWatch
Togo qualifies for debt relief - afrol News
Togo qualifies for debt reliefafrol News, Lesotho -Dec 2, 2008afrol News, 2 December - Togo has been approved for debt relief under enhanced Heavily Indebted Poor Countries, after reaching a decision point under the ... |
Firms Seek More Action to Unfreeze Lending - Wall Street Journal
Firms Seek More Action to Unfreeze LendingWall Street Journal -8 hours agoSo far, the Treasury's Troubled Asset Relief Program, or TARP, and Fed programs to ease the financial crunch have focused on banks and, more recently, ... |
UPDATE 1-Pininfarina sees agreement with banks by end-2008 - Reuters
Know the Details of the Mortgage Forgiveness Debt Relief Act - RisMedia.com (press release)
Obama pledges relief to governors - The News Journal
Obama pledges relief to governorsThe News Journal, DE -11 hours ago"We don't believe economic problems that were in large measure created by too much debt will be solved by more debt," Sanford said Tuesday. ". ... |
C& subsidiaries granted debt relief - 중앙데일리
C& subsidiaries granted debt relief중앙데일리, South Korea -13 hours agoCreditors yesterday agreed on a debt workout program requested by the companies. The market has closely watched the shipbuilding and construction arms of ... |
HIPC: Togo Gets Debt Relief - THISDAY
HIPC: Togo Gets Debt ReliefTHISDAY, Nigeria -Nov 30, 2008The statement said that Togo would receive interim debt relief from certain creditors, but in order to qualify for irrevocable debt relief at the completion ... |
Home > News > World Bank Launches Facility to Prevent ... - World Bank Group
Andhra pays for fiscal profligacy, may be denied debt relief - Economic Times
|
|
 |
|
|
RELATED ARTICLES
Five Hot Tips To Get Out Of Debt Forever
The financial and psychological burden of being in debt causes us and our families continuous emotional stress. That stress eats away at the quality of our lives and leaves us feeling powerless, angry, depressed and helpless.
Debt Relief -- Why Most Programs Have A 75% Failure Rate
Debt consolidation, equity loans, credit counseling, debt management plans, even Chapter 13 bankruptcy ? it doesn't matter which of these debt programs you're talking about. They all suffer from one fatal flaw, the number one problem that causes most people to fail at eliminating their debts through these techniques. Can you guess the problem?
Debt is The Master of Souls
Wholeness requires separation. In order for you to experience yourself as being whole, you spend most of your live experiencing being separated, trying to get back to wholeness.
Bankruptcy: Who is to Blame?
If you are considering bankruptcy as a solution to your financial problems, you are not alone. Bankruptcy is on the rise in this country as consumer debt piles higher and higher. Some people blame the creditors, making it too easy for most consumers to obtain credit. But creditors would argue that consumers have no sense of self control, taking on debt that they aren't sure they can repay. In reality, there are many different reasons that people file for bankruptcy.
Fast Track Out of Debt
You go to the mail box and scan - a couple fliers (nah), your magazine subscription (yes!) and bills (groan). Every month the bills show up and as you sigh and take out your check book you wonder if you will ever be free.
Bouncing Back from a CCJ
Should you be unfortunate enough to face a CCJ ? but subsequently succeed in having it either set aside or reversed - the court will automatically remove the entry from the Register of County Court Judgments.
Slowing Spending - The Key To Your Debt Plans Success
Anyone who embarks on a debt reduction program should know the rules for success. There are
two. You need to stop adding to your debt. You need to find extra money to pay it off quickly.
Tips To Take Control Of Debt Collection
Yes, debt collection tips can help. You may think you have no power when the debt collector comes calling, but think again! Creditors don't like losing out on the ability to collect money owed them. And most creditors will take steps to settle an unsecured debt to collect some money as opposed to no money.
Bankruptcy: Which Chapter Do I File?
There is more than one kind of bankruptcy. You should understand your options before deciding which chapter of bankruptcy you are going to file for, or if you are going to file for bankruptcy at all. Often the consequences of bankruptcy outweigh the benefits so it really is a very individualized decision and should be considered carefully. Bankruptcy should not be a rash decision.
How To Pay Credit Card Debt Off
If you are determined to pay credit card debt off you are making the best financial decision of your life. The reason credit card debt is so bad is because it carries such a high interest rate.
Debt Elimination Is The Key to Financial Freedom
If you want financial freedom, the first thing that you will need to do is to get rid of your debts. After all, as long as you owe money, you can't consider yourself to be financially free. This is due to the fact that the money you will earn in the future won't actually belong to you, as you'll have to put it toward paying off debts in the past.
What Is A Chapter 13 Bankruptcy?
Many consumers that are bogged down in debt frequently turn to bankruptcy as a form of restoring their financial status back to a zero balance. Unfortunately many of these same consumers are confused when it comes to the difference between a Chapter 13 bankruptcy and a Chapter 7 bankruptcy. This quick article will explain what a Chapter 13 bankruptcy actually is and what it does for a consumer that files this form of debt relief.
New Bankruptcy Law ? Where?s the Consumer Protection?
On April 20, 2005, President Bush signed into law the Bankruptcy Abuse and Consumer Protection Act, a piece of sweeping legislation that brought about the most sweeping changes in personal bankruptcy law in the last quarter century. This bill, which takes effect in October 2005, passed with the overwhelming support of both parties of congress, claims, through its very name, to offer "consumer protection." Does it? How are consumers "protected" by this bill?
Debt Collectors: Men or Mice?
Who are these people anyway? They viciously harass you and call you bad names. They embarrass you beyond belief by leaving detailed messages with your neighbors and at your workplace. In extreme cases, they have been known to stalk you!
How to Reduce Your Debt in 5 Easy Steps
If you have incurred substantial personal debt, consider these options: budgeting, debt consolidation, credit counselling from a reputable organization and working with your creditors. You will need to choose a debt reduction method that will work best for you? The method you use will depend on your level of debt, how much spare money you have, your level of discipline, and how quickly you want to get out of debt.
Is It Possible to Be Sued For My Debts?
It is possible for creditors and third-party collection agencies to use legal means as a way to collect debts. The likelihood of being sued or having your wages garnished depends largely on the creditor that is owed money. It has been my experience that certain creditors are more prone to legal action than others.
The Road to Debt Relief
Living with debt is not something someone hopes for, but it happens and it usually becomes far more severe than it should before something is done to eliminate it. Once many individuals realize they have a problem with debt, they are too embarrassed to ask for help so they let themselves dive further into debt. Being embarrassment and ashamed are regular emotions many encounter when they realize they are in debt however you are not alone so you shouldn't feel embarrassed.
How Do You Spell Debt Relief?
Of all the problems possible in a marriage, finances cause the most marital discord. Many singles consider finances to be their most worrisome issue. Many times this is due to a heavy debt burden. Several options exist to help people get debt relief from their unsecured debts. (Unsecured debt is not linked with a physical asset. Therefore, credit cards and medical bills are unsecured debts; a car loan or a mortgage are secured debts.)
What is Bankruptcy?
Here is a useful guide to bankruptcy. It should be noted that bankruptcy is not to be entered into without first having sought professional advice.
Do It Yourself Debt Relief
With mounting bills and unforeseen hardships, you may be considering some form of debt relief. There are many options to help you, but the best may actually be you helping yourself. Here are some suggestions for starting debt relief and becoming more solvent.
|
