Posts Tagged ‘household’

Personal Budget Planning is Crucial!

Wednesday, November 11th, 2009

Create a budget.

Personal budget planning is absolutely crucial if you want to build personal wealth and overcome things like the credit crunch and the current problems that the economy is experiencing. The word “Budget” is one that worries a lot of people because it often seems more like a hassle and a chore than anything else, but there are a lot of easy things that you can do in order to create a personal budget planning process that is beneficial to you and your entire family and household. Here are a set of basic steps that will help you build a personal budget that is going to work well for you and your household as a whole

– Begin the personal budget planning process by collecting at least three months worth of bills, expense statements and receipts.

Look at your bank statements, cash transactions and any receipts that you have saved. Look through your credit card statements as well. What did you purchase? What bills did you pay? Were there any fees that you paid? Are there any habits in your monthly bank statements that are worth noting? Are you spending basically the same amount of money every month? Are there expenses that are the same or similar every month? Answering these questions will give you a good foundation for your personal budget planning.

– Now that you have a firm handle on your expenses, the next step is to gather documents relating to your income.

If you are on salary, put together your paychecks and make sure that you are getting the same amount every month. Otherwise you should gather between three and six months of income statements to get an average amount that you earn in a single month.

– Now that you have a good idea of both your expenses and your incomes, the next thing to do is to compare them to see how much money is left.

This may seem like a frightening step, but it is important if you want to know how much discretionary income you have every single month.

– Now that you know how much money exists at the end of the month on average, you can start looking at what expenses can be eliminated or reduced.

Review your expenses carefully to find out how you can leverage additional income on a monthly basis, because this extra money can be used to reduce debts and begin to save money for the future.

Now that your basic budget is outlined, you can begin to work on prioritizing your debts by reviewing interest rates and listing your debts beginning with the highest interest rate and working down. Once your budget and discretionary income have been outlined you can begin to plan for your financial future by outlining both short term and long term goals in your personal financial life. The last step is simply to exercise patience and to stay the course for as long as you can. Personal budget planning is not going to become a habit as quickly as over night, but it will eventually become a habit if you practice it regularly.

Photo Credits: 1

Originally posted 2020-11-13 05:58:04. Republished by Blog Post Promoter

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When Disaster Strikes

Thursday, November 5th, 2009

Stockpiling can adversely affect prices.

As Hurricane Ike took aim for the Gulf Coast, the financial markets reacted much in the way that they were expected to. Gas prices jumped to $5 a gallon along the gulf coast, and many expected the price jump to go nationwide, particularly if the hurricane caused damage to any offshore oil rigs. Since the industry in the area was still reeling from the effects of Hurricane Katrina, it comes as no shock that the worst case scenario was trotted out with the approach of Ike.

But, what does this mean for the average consumer? How badly will prices be affected by another adverse event? We’ve seen the economic damage caused by Hurricane Katrina, so we have some form of basis to go on as to what to expect, but that does not mean that panic is necessary. There are a few things the average household can do to shore up their own defenses against natural disasters, whether they hit right at home, or thousands of miles away.

Panic is an ugly thing, and as people raced to the pumps to fill up their tanks, it is apparent that fears over even higher gas prices are running rampant. It is important to stock up on necessities such as fuel, but going into a panic mode over it is certainly counterproductive. Preparation is very important but the key is remaining calm. Panic serves only to weaken economic situations, and by looking at the issues rationally, you can rise above this problem and come out on top.

If you have extra gas containers, there is nothing wrong with stocking up, but hording is not recommended. This serves only to impact the overall balance of supply versus demand and can actually make prices worse. Stocking up on other necessities is also a good idea, but again, within reason. There is no need to run and clean out the grocery store and give into that panic mentality.

Preparing for natural disasters should be done well before they strike, no matter where you live. By waiting until the last minute, consumers can end up overspending, only to find that there was no real reason for all of their upset. If you are in the path of a natural disaster, or your area is at risk, keeping a special disaster kit is the perfect response to this problem. Preparing ahead of time, while prices are low and panic is not present, will help consumers beat the common problems of panic-fueled prices.

In today’s society, there is definitely a raised awareness of how disasters, both manmade and natural can affect us all. Preparing is essential, there is no doubt about that. However, the key to getting ready is taking the time to stock up before disaster strikes, so that when it does, you have everything you need on hand. This will help you save money, reduce overall stress and keep you prepared for any eventuality, and without putting you through the paces of panic.

Photo Credits: 1

Originally posted 2020-11-07 05:10:16. Republished by Blog Post Promoter

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