Budgeting-Great Advice On Budgeting Worksheets, Personal Budgeting, And Budgeting Tips

Unless your Kimora Lee Simmons or Donald Trump chances are you have limits on the amount of money your able to spend. The ability to manage your money in school is important to keeping debt to a minimum while being able to enjoy the fun activities college life has to offer. Of course, as a part of a college budget, it’s okay to spend money and purchase the items you want when you can afford it. And if you take the time to be a good shopper, your money will go a lot further – without breaking your college budget!

If you follow a simple student budget, you will have more money available to afford the activities that make college an experience you’ll always remember. What’s more, you will avoid college debt which means a brighter and richer future for you, your family, and your friends. That is how you will reach your financial goals and enjoy the things in life that make you really like doing.

Below are money saving tips that will make your student budget go further.

1. List what you want – This is a fun exercise that will help you spend money on the things you truly want. Take a pad of paper and write down everything you want. That new sound system, house on the beach, new wardrobe, car, toys, electronics, whatever it is no matter how big or small write it down. Now that you know what you want list them in priority. What is it you want the most; put that at the top of the list and work your way down.

With this list you maximize your college budget and are able to purchase the items you want the most. Seeing the items you want to work toward can provide strong motivation for you to earn the money necessary to buy them. Knowing what it is that you want the most and what will make you happiest is a key component for a developing college student budget that allows you to get the items you want while not overextending yourself.

2. Daily Splurges Those small everyday purchases that on a college budget plan add up more than you may realize. A four-dollar coffee, during the week, adds up to over $1200 a year of needless spending. That’s a 4 star trip to Mexico with your friends for 5 days. What would you rather buy with the $1200?

3. Shopping for entertainment – It can be fun to window shop, but only if you don’t lose control every time you spot a “bargain.” If you have the will power to keep your student budget, definitely go window shopping and enjoy yourself.

4. The good deal shopper – If you have a closet full of clothes with sales tags still attached, your discount shopping may cause you to get into college debt. Avoid debt by purchasing items that you truly need and will use. If you’re experiencing buyers regret after a purchase, don’t be afraid to return those items.

5. Compare prices – If you follow the steps above you will avoid buying on impulse and stick to your student budget. This gives you the luxury of being able to compare prices of a particular item so you can take advantage of discount stores and the Internet for tracking down the best price.

6. After-season Purchases – Purchase your beach gear in the winter and your winter gear during summer. This will stretch your college savings longer and it could save you at least 30% to 80% off what you would pay just a few months later.

7. Be creative – A little creativity goes a long way, especially when you’re tight on funds. Instead of paying $120 for designer jeans, spend $35 for discount jeans pay a tailor $12 to add stitching that mimics designer jeans. You will look great and have money in your newly stitched packet.

8. A Money Diary – Most of us have cash that vanishes each monthto those impulse stops for a double mocha or a drive through snack. To understand how you spend your money, write down everything you spend money on: every coffee, every burger, every bus or taxi fare. Keeping a money diary will help you keep on your college student budget.

The purpose of these money saving tip for college students is to make you aware of how you spend your money, and it is the first step in developing a budget. There is a good chance that after an entire month of doing this, you will begin to think a bit more before you spend. After 30 days of keeping a diary, ask yourself: what have you learned? Are there areas where you feel you spend too much?

9. Opportunity Cost – With every purchase you make there is a direct cost (cash) and an opportunity cost. The opportunity cost is the cost of something in terms of an opportunity forgone. In other words, what else you could do with the same amount of money. What is the opportunity cost of spending $470 for an iPhone? It may be very high if it means you will not have the $470 for something that is more important to you.

To maintain your college budget, this is a good exercise to repeat from time to time as your income and circumstances change. Five years from now your spending habits will be a lot different than they are today.

For most on a college budget there is a liming on how much we can spend. Look at your student budget objectively and get real about your money. Practice these basic college mnoey saving tips and you will be able to afford the lifestyle you want sooner than you think.



By: Vince Shorb

About the Author:

Selene Ziernicki

 

The vote on account budget is a very tricky budget. If the ruling party gives too many freebies in it, it will immediately be rapped for using the budget as a tool to unfairly influence the coming elections. Yet, never before perhaps, in the name of Parliamentary propriety, was such a brain dead, irrelevant and unimaginative budget presented… that too when the entire nation was looking up to the Finance Minister for some relief from the seemingly unending woes of economic slowdown! For two hours, the Finance Minister spoke about what the Manmohan Singh regime achieved; but didn’t give anything new on a real time concrete plan to deal with the present crisis of recession. A day before the budget, when it was made clear that it would be Mr. Pranab Mukherjee who would be presenting the budget speech, I had mixed feelings. On one hand, I was extremely appalled at the scarcity of quality people in the Congress. In the last one year or so, it has always been Pranab Mukherjee who has come to the rescue of an otherwise beleaguered government, whenever the situation arose. Whether it was the Indo-US Nuclear Deal or the issue of managing the Left (who eventually left the UPA), whether it was the crisis created after the occurrence of 26/11, or now when the budget was to be presented by some person other than Mr. Chidambaram (as he was mandated to handle the Home Ministry giving the hopeless Shivraj Patil some respite), the answer was Pranab Mukherjee. And since he has always delivered above expectation, I had a feeling that this time – as he would have been delivering the budget speech again after nearly a quarter of a century – it would be something worthwhile. But by the time his speech was halfway through, I realised that he had merely been invited to read out some written text, perhaps deliberately made lackluster to ensure he didn’t end up stealing the show and ruining the current balance of power in the party!

The budget has increased the fiscal deficit of India to nearly 6% from a targeted 2.5%. By giving the Fiscal Responsibility and Budget Management (FRBM) Act a quiet burial, UPA did what it does the best, that is, increase government expenditure rather exponentially on the presumption that such increase in government expenditure would on its own bring India out of the clutches of economic slowdown. So the allocation for the National Rural Employment Guarantee Scheme (NREGS) has been increased to Rs. 30,100 crore. On paper, this scheme is perhaps one of the best schemes that could have ever happened (and actually required double that amount to become fully effective), but at the same time, everyone knows what happens in India with the money that is allocated by the government. There have been innumerable instances of corruption, malpractices, exploitation and siphoning off of money earmarked for NREGS. Sample this. In place of the minimum 100 days job promise, the reality has been as low as 77 days in Rajasthan (which is in fact the highest!) and an unimaginably shocking 14 days in the so called pro-poor CPM ruled West Bengal!!! Therefore, a mere increase in allocation does not necessarily signify a major extension of the helping hand, unless those leakages are taken care of. The same is the case with Sarva Shiksha Abhiyan and midday meal schemes, where allocations have been increased to Rs. 13,100 crore and Rs. 8,000 crore, respectively. One wonders what these increases are for! Have they been made so that more money is siphoned off? For the Bharat Nirman, National Rural Health Mission and Total Rural Sanitation Program, an allocation of Rs. 40,900 crore, Rs. 12,070 crore and Rs. 1,200 crore has been made respectively. One is really left flummoxed whether people in government even realize that India’s ranking in the Human Development Index has only worsened in the recent past. It is unfortunate that while thousands of crores are being spent every year in the name of rural development, the condition of the rural lot has not substantially improved and the divides between urban and rural India are still startling and ever increasing. All that a government needs to do is to provide good health, good education and good connecting roads. It would automatically make the rural lot connect to the economic growth of this country. Add to this, the incredible increase in the non plan expenditure on account of a huge increase in the subsidy bill, which now stands at Rs. 95,579 crore. This subsidy targeting has been so poor that neither has it been able to make undernourished people get enough food, nor has it been able to reduce the woes of the farmers. All that it has helped is to make a few fertilizer companies become richer by showing bloated bills. Instead of undertaking projects to have, say, Sulabh Sauchalay type schemes (that would give our villagers better sanitation facilities as well as far better quality natural manure), subsidies are given to fertilizer companies to help them stay afloat.

Yes, the defense budget has been increased by a whopping 35%!!! Yes, we had the Mumbai attacks, but did that require such a high increase? Probably not. These are times when Pakistan is a broken economy struggling to survive, with almost half of that nation now under Taliban; and its nuclear weapons most certainly under American control (as any defence expert would confidently assert). Then why was such a sudden increase undertaken? Is it simply an ‘election time deal’? Another issue worth mentioning is how, though Laloo has made a Rs. 90,000 crore surplus with Railways, the same is not being passed on to the people in the form of better facilities, more production and jobs etc. At the same time, the public sector this year making a profit of a staggering Rs. 90,000 crore plus, proved two things! Firstly was proved that the argument – that public sector is by nature loss making – is total garbage. It is made loss making when public money is to be transferred to private hands by taking huge bribes. But more importantly, and secondly, the whole situation showed how money wasn’t a real problem in this budget, but actually the lack of imagination.

Given the scenario, the government could have done more with respect to rationalization of corporate and income tax as that could have boosted more demand in the market than what would be achieved through the increased borrowing of and spending by the government. At another extreme, an incredible increase in non plan expenditure to the tune of Rs. 6,68,082 crore and increased borrowing by the government as a result of an exploding fiscal deficit of Rs. 3,32,835 crore does not portend good for the Indian economy. Times are tough and while fiscal policies would fail (as there is no money to pay taxes in the first place), a monetary policy driven approach of just printing notes would be detrimental for the poor and would give rise to inflation. What the country required was real investment in productive processes and infrastructure. And infrastructure not merely in the form of roads, but in the form of health and education – for a healthy and educated man is far more productive than one who is not. But that required vision and commitment for the nation. What a shame that even in such a crisis period, we had such a futile budget. Didn’t I call for the banning of the Union Budget last year? Even if we disregard that call, if the vote on account budget has to be such a sham, at least this exercise should be banned immediately and the new budget be declared only once the new government comes, which is to happen in any case.

By: Kartik

About the Author:

Irvin Remington

Money Budgeting is a phrase that either bores them too much, or makes them depressed. But, this is how successful people deal with money – they budget. It’s a lesson that must be learned to succeed financially in this life. Here is some helpful information.

Many people are lured into the trap of spending more money each week than they are bringing in and most people are doing this without even realizing it. The main reason this happens is because we are no longer taught or remember how to budget our money. With the introduction of credit, it has become easier to use money that you don’t actually have.

This lack of money budgeting in today’s world is beginning to reach a cataclysm with many families, and individuals who are now finding themselves with severe debt problems and little knowledge about how to turn their bleak situation around.

Even with all of the bad debt write-offs, banks are more than happy with the way things are. Banks build in their own risk factors based on bad debt in their interest rates to give them profit regardless of bad debt write-offs. Simply put, those borrowing money are paying for their inability to budget effectively.

Tips to Effective Money Budgeting:

The basics of budgeting start with you listing incoming money over a period of time, such as a weekly, monthly or fortnightly, then listing the outgoing money, such as mortgage payments, car re-payments, credit cards and so on. Money budgeting also has many other factors used to make it effective, including keeping a constant eye on how your budget is doing and changing it to accommodate unexpected problems without overspending.

Keep all of your receipts and account for what has been spent. Use this to make calculations as to where your money is going and for what. Expenses can be divided into four main categories. These are:

-Housing: mortgage, rent, utilities, property taxes, insurance, etc.

-Work: transport, parking, work clothes, lunches and if you have children, day care

-Living: food, clothing, medication, insurance, etc.

-Personal: entertainment, newspapers, magazines, alcohol, gifts and education, etc.

Once you have categorized all of your bills, take out a blank piece of paper and a calculator. Figure out what is being spent each month on these categories and what can be cut out of the budget to allow more money to go toward bills or improving your financial situation.

Many people get so used to luxuries, they turn these things into fixtures in their weekly, fortnightly or monthly spending habits. By weeding these expenses out or making them a luxury again that is only enjoyed occasionally, you can also save quite a substantial amount of money. When you go through your spending habits, you will be able to calculate how much you are actually spending on these things.

Don’t forget that a contingency fund should always be factored into any money budget. This works out to be around 10 % of your income. A contingency fund will benefit you when you need it the most, such as when you lose your job or have an unexpected expense such as plumbing go wrong in your home. This contingency fund should be kept in a separate savings account and only accessed in emergencies.

Motivation Is The Key:

Motivation is very important when you are budgeting. As an incentive to create a budget and stick to it, remember that the only way to regain wealth is by spending less money than you are receiving. The only way to spend less and do more with your money is to learn how to effectively budget it and stick to your plan.

Once you start to see the benefits of your budgeting and are rewarded with more money in your bank account after you have finished paying out, you will be more encouraged than ever to budget your money.

Another way to teach yourself to budget is to give yourself a solid incentive to stick to it, and make your budget work. You may make it your goal to get your finances in order, so that you can take a vacation or get something that you and your family really wants. Place reminders on your fridge or in your wallet. By doing this, you will be reminding yourself of the reason you have decided to sacrifice some of your luxury spending.

Although this sounds great, when you budget, you will have to learn to set aside any emotions that you may feel toward your budget. Examples of emotions getting in the way and interfering with a well planned budget is when you have to cut out the things that you want, such as weekend breaks away, toys for your children or new furniture, for a while, until you have arranged your finances for the better better.

If you have a family, try to keep them involved in your money budgeting and where the budget needs to be tightened to benefit everyone to exclude non-essentials, explain to family members why budgeting is important. This will help to educate those around you about the importance of budgeting and how budgeting can help you all obtain the things that you want, such as luxuries, without them being a financial burden.

Another trap many people fall into is getting into the habit of ‘keeping up with the Jones’ regardless of their own personal financial situations. After all, money budgeting is about your personal set of circumstances and your personal finances, not someone else’s. Just because your neighbors have just bought the latest model car or had cable television installed, doesn’t mean that you have to, pay attention to your budget and let it be your decider on whether you can afford the things that you want.

Budgeting is a vital skill needed to control your finances and avoid getting into serious debt. By educating yourself on how to budget effectively, taking the time to carefully plan a good budget and monitoring it regularly you will be able to keep yourself and your family encouraged to stick with it.

Set achievable goals and even though, at first, money budgeting may seem tough, it is the only way to have the things that you want, as well as a secure financial future.



By: Ken Black

About the Author:

Marty Silton

There are many things that will influence our financial lives, but perhaps nothing influences our finances and our financial future quite as much as a realistic and properly followed household budget. All too few of us have learned how to budget properly, and this failure to create a household budget can lead to all manner of financial ills.

One of the main reasons so many of us fail to create a budget is that we feel that creating a budget is overly complicated. In fact, creating a budget does not need to be at all difficult. Creating a budget can be as simple as writing down each expense and keeping track of it for a month.

The easiest way to do this is to carry around a simple budget sheet, which can be as simple as a small notebook. Into this budget sheet, write each item you purchase, from that morning cup of coffee to the muffler on your car. At the end of each week, enter this budget data into your favorite spreadsheet or budgeting program, assigning each expense a category as you go. This simple strategy will make it a great deal easier to keep track of your expenses going forward.

Often this simple budget exercise is a great eye opener for consumers, and a great way to recapture money that has been leaking out of your pocket. After all, that $4 daily cup of coffee may not seem like much, until your budget shows you that forgoing it by making coffee at home could save you over $100 per month. Those weekly dinners out may not seem like that big a deal, until your budget shows you where you could cut back without impacting your lifestyle.

The usefulness of the monthly budget is endless, and knowing where your money is coming from, and where it is going, is an essential first step when it comes to getting a handle on your finances. Until you take the time to establish and stick to a realistic budget, you may be unable to get a true picture of your financial situation.

There are many things families and individuals can do to improve their financial situation, from landing that promotion to taking on a second job. Few things will provide as much power, however, as finally sitting down and creating that household budget. The budget is the most basic of all financial documents, and it is important to take the bull by the horns and get that budget under control. Creating a budget is not easy, but the rewards are great.



By: Mike Freemen

About the Author:

Bryon Houseal

What Is A Budget Simply put, a budget is a spending plan. It details how much you earn, how much you spend, and how much is left over. If you have any money left over, then you have a budget surplus. If you don’t, you have a budget deficit. If you happen to fall into the budget deficit category, then you have to cut non-essential purchases completely out of your budget. Generally, living and leisure expenses can be modified slightly to fix the problem.

Why Start A Budget

Statistics show that the average American spends 10% more than they earn. This means that if you have an annual household income of $50,000, then on average you would be spending $5000 more than you earn. The only way to combat this cycle of overspending is by establishing a realistic household budget and stick to it.

What Are The Benefits of Budget

Maintaining a budget allows both individuals and families to become debt free, save money, track spending patterns, and achieve financial goals. Whether you are looking to pay for your next car in cash or funding your child’s college education, establishing a budget is a sure way of doing it.

Why Some People Fail at Budgeting

Many people fail to live within their budget when they feel that it is too restrictive or too difficult to manage. Therefore, it is a good idea to allow room for leisure entertainment and some discretionary spending. This way, you stick with your budget and it becomes a habit without feeling miserly.

How To Start A Budget

Follow these quick and easy steps and you are well on your way to becoming a master at budgeting.

1. Set your goals. Why do you need to budget? Saving for a new car, vacation, or nest egg?

2. Determine your cash flow. How much is coming in every week, month, year? Write it down, or enter your information into a budgeting software program, such as Budget Forecaster by Strativia.

3. Determine your expenses. Where is your money going? Again, write it down.

4. What the verdict? Do you have a budget surplus or budget deficit?

5. Maintain or modify your plan. Depending on your results, you should either stay the course, or change your course to achieve your financial goals.

There you have, Budgeting 101. It’s not hard. The difficult part of budgeting is actually starting and sticking to it. If you start today, you will be financially free tomorrow.



By: Kenneth Kelly

About the Author:

Chris Caley

The problem with most people these days is that they get so comfortable with their expenses through the aid of credit cards. They become so indulged with cashless shopping that more and more people are spending more than what they can afford.

For this reason, experts contend that budgeting can definitely alleviate the consumers from financial strain by managing their expenses and income instead of falling into the pit of liabilities.

However, some people just contend that they cannot simply do budgeting alone. They insist that they need some help in order to come up with a reliable and workable budget.

That’s why some financial experts have created some money budgeting software that will facilitate the creation of a good budget in order to promote wise money-saving strategies.

Basically, money budgeting software assists an individual in his or her expenditures and uses the money sensibly. These new technologies will help distribute the money into various aspects and areas and will also help add to savings.

So, if you still don’t know what the money budgeting software can do for you, here is a list of its advantages:

1.It helps you keep track of your expenses

Money budgeting software can definitely allow you to keep track of your expenses. With this kind of technology, you get to understand your cash flow and allow you to be aware of how much money you spend and earn.

2.It helps you to create some probable projections of the future.

While some people are comfortable with the usual type of budgeting on paper, utilizing a money budgeting software can give you more than what you expect. You can even make some possible projections using your integrated money budgeting software. And if you are really into hard copies, you can even print them out for record keeping.

3.It gives you control

The problem with most people who do not have a budget to guide them is that they tend to overspend with what they have.

With this kind of help, you can gain control of your expenditures. You will be able to know when you are already overspending or not. Plus, you become attentive of the blow of every money decision that you make.

The bottom line is that money budgeting software can definitely give you the kind of assurance and control that you need to keep track of your expenses. In this way, you can be surer that all of your spending activities are based on reason and plan and not just sheer indulgences.



By: Paul Hata

About the Author:

Lisa

If you are ready to stop budgeting, then you aren’t doing it right.

The truth is that budgeting is something that you make into a habit. If you are doing it correctly, you should keep doing it for the remainder of your life. Budgeting is a way to make your goals a reality. You will always have goals, so you are never finished with your budgeting. Your future will keep coming.

That in mind, you have to remember that budgets are not written in stone. Your budget could change next month. It is basically a way to keep track of the efficiency of your finances. When your income changes, your budget changes. When your needs change, your budget should change. If you find that your budgeting goals are unrealistic, you should change that portion of your budget.

By making the tracking of your budget part of your monthly financial work, you will be able to see if it is working for you or not. If it isn’t, you need to make the necessary changes.

One of the first things that new budgeters see is that they have cut their expected spending for food, gasoline and entertainment way too much. It is simply unrealistic to believe you can cut your grocery spending in half over night. Challenge yourself at a slower speed. Aim to spend $20 less than normal this month. Then challenge yourself again next month. Take small steps and let yourself adapt.

Things happen that can throw your budget all over the place. You simply have to keep working at budgeting. I know that if you lose your job or have a medical emergency, the last thing on your mind is your budget. However, it could be the one thing that keeps you feeling as if you are in control of your finances.

Your budget will help you achieve your goals. When you have achieved them, you need to move onto new goals. For example, you have worked hard and are now comfortably retired. Now what? You may want to travel or start a new hobby. Your budgeting will take you into the next stage of your financial life.

Keep in mind that your budget should work towards the future, but remain in the now. In other words, do not spend your money on what you think you will have tomorrow. If you are planning on a raise, don’t go out and use your credit card thinking you will pay it off when the raise comes through. You never know what could happen. This is extremely risky. Stay in the right now with your budgeting. When your income actually changes, reassess your budgeting accordingly.

Budgeting gives you back the control of your money. Once you are really successful with your budgeting, you will want to continue to challenge yourself. It is easy to become comfortable and let the budgeting lapse. But remember, if you want to remain financially successful, you can never finish your budget. Keep working towards your goals by using your budget wisely.



By: Martin Lukac

About the Author:

Tom

A home budget is often considered a frustrating venture into the world of managing money. Getting into the habit of following a budget might seem like a chore, at first. This is especially difficult for people who are impulse buyers and free spenders. But using a budget can end up saving plenty of money, if you take the time to learn how to live with one!

The first step in setting up your home budget is to write down all your income and expenses. Try to include upcoming expenses or those that occur only once a year. By including them now, the bills won’t be a surprise and the money to pay them will be readily available. If you’re not sure how to set up a home budget, plenty of free forms and guidelines available online will help you get started.

Always include “fun” money in your budget. A budget isn’t there to restrict your spending or cut out all the entertainment. Rather, it helps you see at a glance where your money is going. It allows you to manage income and expenses far more effectively. You may also discover that what seems like small purchases add up to big money. This helps you curb costs and redirect money towards better expenditures.

To help you stay on track with your home budget in the first few weeks, stop carrying cash. It’s easy to pull out a twenty when something catches your eye. The less cash you carry, the harder it becomes to make that unnecessary purchase. Even a dollar here and a dollar there add up quickly. Before you know it, the cash you had is all gone.

If you prefer paying with cash over debit or credit cards, decide before you leave home how much you need. Only take that much and no more when you go shopping. You can’t spend what you don’t have!

Using a list is one of the best ways to stay on track with spending, especially in places like the grocery store. Training yourself to follow a list for purchases helps you eliminate impulse buys. Also, a list helps direct your course through the store. Wandering about is just what store owners want you to do, it increases spending and makes them more profitable.

Using a budget doesn’t mean you have to become a coupon-cutter, but coupons do add up to big savings in the end. Clearance stores and discounted items also lead to savings. That money could go towards a reward for yourself, like a trip or a night on the town. It’s important to remember to please yourself, even if you are on a budget. You just have to be careful with your spending and keep your eye on the prize!

Really, a home budget isn’t about tracking spending and income. It’s about self-control and sticking to a plan to achieve a result. A home budget helps retrain your thinking to avoid wasting money in light of other, better goals.

If you find sticking to your home budget difficult, use the buddy system. When faced with the urge to buy something, call your budget buddy. Ask the person if he or she agrees with your desire to purchase the item. They’ll help distract you from the craving to spend and help keep you on track. Even better, take the person shopping with you!

A new habit takes about two weeks before starting to settle into permanent behavior. Getting into the habit of sticking to your budget is worth the effort. Before long, you’ll be seeing a definite change in your spending and more money at the end of the month. You’ll have a good feeling about yourself, proud of what you’ve accomplished. You might even be amazed at how much money you’ve saved!



By: Mike Tansey

About the Author:

Sommer Gessel

Key Reasons for Managing Your Budget

- You Have Limited Income: Virtually everyone has limited or fixed income. Without budgeting you are being controlled by your environment. If you have a plan, you are more in control of your money. Without a budget, you may not really know you are spending more money than you are earning.

- So That You Know Your Limits: Knowing what your monthly expenses are projected to be and what they actually are will help you keep track of how much money you have left over for future goals and needs.

- You Have Unlimited Demands: There is an endless demand on your finances. Our commercial capitalistic society is constantly calling out for you to buy. If you have minor children, the demands are greatly increased by the things that they want, the activities they are in, and the schools they attend.

- You Want Freedom Not Bondage: Budgeting seems to be restrictive to some people. The reality is that we have to make choices between what we want at the moment and our regular bills and goals for the future. However, there is freedom in knowing what your limits are. Many people find this liberating, because it creates the opportunities to grow and mature.

- You Have Future Goals: If you are sacrificing today, it helps to know what you are saving for in the future. Obtain a financial plan so that you will know what your goals are and for what you are saving.

- You Want to be More Aware of Where Money is Going: If you do not have a budget, you may have no idea where your money is going. Knowing where you money is going will help you identify if you are spending too much money in specific areas.

- You Want Less Stress: Spending without a plan and a budget increases your stress because you do not have a well thought out plan for paying your bills and you may spend more money for fun than you can afford. Planning and budgeting will give you the peace of mind that you are on the right track.

Contract with Yourself (and between Spouse)

Budgeting is very hard for many people; therefore, it helps to have a contract with yourself. If you are married, this agreement should include your spouse. If you work together, you will usually accomplish more than you could on your own.

I hereby resolve to:

1. Start a budget, and pay attention to it weekly and monthly

2. Not spend more money than I make

3. Be in financial partnership with my spouse with no secrets between us

4. Not borrow to purchase items that depreciate in value

5. Not let my emotions make me purchase anything, including gifts

6. Not purchase something over budget unless it was unavoidable

7. Not purchase anything that I don’t really need, no matter how good the sale is

8. Not purchase something to keep up with the Joneses

9. Not apply for any new credit cards, unless lowering interest rates

10. Pay off all credit cards monthly (I will work toward paying them off)

11. Not spend money on fun things unless I have paid my monthly bills

12. My spouse and I will both be the “fun police”

13. Include children in the budgeting exercise to teach restraint

14. Not obtain high maintenance items like a pet or hobby if I can’t afford the expenses.

15. Not buy something that costs over $50 without consulting each other and the budget

Cash Flow Management Checklist

In addition to having good budgetary habits, it also helps to take advantage of money-saving measures. The following are many of the things you can do to help you save thousands of dollars per year.

- Employ tax advisors to you avoid overpaying taxes

- Use low cost investments that have low to no commissions, fees and expenses

- Shop your loans to find lowest interest rates

- Shop your insurance for the lowest prices possible.

- Buy smaller homes and cars since they require less money to maintain and insure

- Go on cheaper vacations

- Frugal travel to lower the already large consumption of your income for gasoline

- Eat out cheap, less often and at less expensive establishments and cafes

- Spend less on food by shopping at low price grocery stores and pack your lunch

- Lower home energy consumption by employing easy to find and low cost solutions

- Break smoking and excessive eating habits to save on tobacco and fast foods

- Monitor emotions to avoid depression or stress related purchases

- Obtain from the library resources about budgeting, financial planning and spending

- Go to the library for entertainment books and DVDs

- Reduce or eliminate cable TV

Budgeting Tips

Use technology or spreadsheets:

Obtain software (or use spreadsheets) that will help you pay bills and make and monitor a budget. Devote time to it by keeping track of all expenses and enter them into your software program or monthly spreadsheets each week.

Save all receipts, bills, household documents, and tax documents:

Organize these items by category into an accordion file or drawer: e.g., auto, bank, business, credit cards, dental, medical, grocery, income, insurance, mortgage, utilities, general receipts, school information, and taxes.

Balance your checkbook:

Many people don’t balance their checkbooks each month. Budgeting software makes reconciling simple, but you can read the back of your statement or make an appointment with your banker if you need to learn this skill manually.

Tax Time:

If you use budgeting software, you can run a tax summary report before you work on your taxes. If not, and if you itemize your taxes (Sched.A), you must total the appropriate columns in your spreadsheets, e.g., Medical expenses (Your accountant may provide you with an organizer to help you get ready for tax time.) Remember to place quarterly and yearly expenses on the appropriate month in your budget so that you do not overspend. For example, annual insurance payments, quarterly tax estimated payments, annual homeowners association dues, etc.

Summary

Good cash flow management is key to implementing any financial plan; commit to doing this well. No one likes self-discipline, but it is actually good for us. With proper management of your finances, you will become more confident and less stressed about your future. Remember, one bad financial decision can sometimes take years to undo. Be very careful with all decisions you make.



By: Kent Irwin

About the Author:

Dorian Osterhouse

asily accrue a debt but getting rid of it can take the hardest time. In these unstable times, getting rid of your credit card debt is one aspect of your finances you should really focus on today. It is the urgent time to take the necessary steps now and learn how to live only out of your income. Let me introduce you to the concept of budgeting. One the worst reactions most people have are upon hearing cases of bankruptcy. And for us to avoid that dreaded situation, it is time to face the reality and delve deeper on the root of the problem. Before starting out, we definitely need a plan that will guide us with our financial tracking and that will keep limits to our spending. That plan is the very household term called budget. A budget is basically a plan, you read that right. When you create a budget, you are putting a record of your supposed spending with the corresponding purpose before your month starts. For a lot of people, this can be perceived as a block that keeps them constrained. Naturally, the freedom to spend and the concept of budgeting really do not go together. Taking it at an angle where you see and know that your hard-earned money is spent with good intentions, you will in fact experience the real freedom. For many who experienced this awakening, they say that the realization seems to make them more productive than constrained. In the course of the process, they have found out that they even earned more money when they followed a realistic budget. Sticking to it, though, is a very challenging hurdle yet can be very rewarding when accomplished. As a tip, take your time to tally up all of your monthly debts into a record. Figure out how much you spend on gas, groceries, and other necessary items. Take into account all the rest of the spending. Observe and see if you can cut up some of those extra spending you have throughout the month. Determine how much you can make if you cut back on those expenses. Usual expenses you can reduce are cell phone plans, cable TV programming package, gym and club memberships, and that extra night out session. These changes, although painful, will give you more extra money to add to your payments for getting rid of debt. This time where you are in the midway of getting out of a credit card debt cycle, the focus with your budgeting is very crucial. By deciding today to take some action and be responsible with your spending, this will save you money for the long term and regain your credit standing. At the end, by helping yourself you are ensured of a much better financial situation.

By: Paul Easton

About the Author:

Jack