Archive for the ‘Overspending’ Category

Breaking Down Budgeting

Sunday, August 2nd, 2009

A personal budget is simply a spending plan. Before you work on personal budget planning you need to have a good idea of where and how your money is being spent. It can be a tedious process, but it can also be a true eye opener if you are not already well aware of how and where you are spending your income. Many people tend to spend their money with no real idea of where it is going. The first step to making a budget that you can live with is to come up with an accurate and easy to follow system for accounting for your expenses.

Track your spending! One simple and inexpensive method for tracking your spending is to purchase a small notebook from a grocery store. Keep this notebook with you at all times, and every time you spend money, write it down. You need to be able to keep track of ATM withdrawals, debit transactions and credit card expenses. You may also consider using a simple spreadsheet software program or a paper system in order to record and track your expenses from day to day.

Budgeting doesn't mean hoarding your pennies.

Create a budget! Having a budget does not mean that you have to squirrel away every penny, doing without important things that you need in your life. What it does mean however is that you are making sure that your most basic needs are being taken care of first and foremost, and that you are keeping yourself aware of how much money you have for splurging purposes. After you track your expenses, the next step is personal budget planning. Here are some things that will better simplify the personal budget planning process.

Income –

Make sure to include all sources of income and revenue, including gross income paychecks, child support, alimony, bonus checks, government checks, investments, retirement and personal business income as well.

Recurring Expenses –

Here are some of the usual monthly recurring expenses that you may find yourself dealing with. Along with your record of spending, this list will help to make sure that you are remembering everything that you need to account for: Food, home insurance, childcare, health insurance, gas, automobile insurance, electric, cell phone, home phone, internet access, cable, satellite television, water and sewer, prescriptions, dining out, garbage service, school lunches, entertainment, work lunches and charitable giving as well. You are also going to want to include monthly savings account goals, dining out, movies and other activities that you will spend money on regularly.

Variable Expenses –

This is a list of expenses that come regularly but not on a monthly basis. Some examples are spending for holidays like Christmas, Thanks giving, birthdays, personal care, income and property taxes, household repairs, prescriptions, doctor visits, clothing, shoes, school tuition, book costs, school supplies, school expenses, home equity, mortgage expenses and automobile expenses.

Unsecured Debts –

Here you should make sure to track any credit card debt, loans, school loans and other types of unsecured debt that needs to be paid off.

In order to put together all of these personal budget planning elements, you need to track your income and expenses on a month by month basis. Take the net amount you earn from each income source and figure out how much is earned in a year following this plan, then divide by twelve for a monthly average. Do the same with your expenses to come up with an average monthly amount. This is the best way to budget. It may not be exact, but it does allow you to more effectively and efficiently plan both for incomes and expenditures.

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Originally posted 2020-12-03 05:02:26. Republished by Old Post Promoter

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Tips for Managing Your Money Wisely

Tuesday, July 21st, 2009

With a few tips for managing money wisely, you should have no problems putting together a good working budget and learning how to manage your money. Here are some excellent tips for managing money wisely that will give you a great platform for getting started.

Budget – don't throw money away! Put it to good use!

1 – The first step is to figure out how you are currently managing your money.

Spend a month tracking every dollar that comes in, and every dollar that goes out. By the end of the month, you will have established a pattern of how your money is spent. From this, you can create a budget.

2 – Once you know how you are currently managing your money, creating a budget is vital.

Are you happy with how your money was spent in an average month, or is money going into the wrong expenses? Form a budget that allows for all of your expenses to be paid monthly, with money left over for savings. You should not be spending beyond your means, nor should you be completely broke by the time bills are paid every month, and a budget will ensure this.

3 – Revisit your expenses, spending practices and budget at least every few months, or twice a year to make sure that nothing drastic has changed.

Bills can vary a little bit from one month to the next month, but you should still have no problem paying them off unless your income takes a hit or your expenses climb considerably. If changes are occurring, it is vital that you make sure your budget reflects them, meaning that your budget should change over time as well.

4 – When forming a budget, you should make sure to include every potential expense, otherwise you may end of forgetting something and paying severely in the long run.

Your budget should include your housing, auto, insurance, home maintenance, food, clothing, personal grooming, dry cleaning, utilities, credit card payments, loan payments, other insurance payments, child care, entertainment, child support, legal expenses, medical bills, savings, vacations and income taxes. If it involves money coming in or money going out, it needs to be included in your budget in order for your budget to be efficient.

5 – If your budget is not working for you or you are still having difficulty finding ways to manage your money wisely, it may be time to rethink the way you are budgeting.

There are all kinds of different ways to budget and manage your money wisely, so change things up a bit if you feel like what you are doing isn’t effective.

These tips for managing money wisely are just the beginning. Learning to manage your money wisely takes time and effort, but once you find a budget plan that fits your needs, managing your money will be easier than ever, and that is when you can truly begin to get a handle on your finances, saving money every month.

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Originally posted 2020-11-21 05:59:44. Republished by Old Post Promoter

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Managing Money Wisely

Friday, July 3rd, 2009

Managing your money wisely in 4 steps.

One of the hardest things for many people to accomplish is managing money wisely. We may all know the basics, and understand that spending too much is a good way to get on the road to financial ruin. However, when push comes to shove, we end up making mistakes that may take years to undo. If you’re serious about managing money wisely, there are a few tips that you can implement today that will help you reduce the mistakes you make and help you take better advantage of your successes.

1. Always weigh the consequences.

Impulse buying that cannot be controlled is a sure recipe for disaster. If you are trying to start managing money wisely, the first step to take is to make sure that you weigh the consequences before making any purchase, big or small. When you start to consider the consequences of a frivolous purchase, resisting the urge to buy it will be a lot easier. For example, let’s say that you have had your eye on an LCD television that costs $6000. Once you spend that money, it’s gone, since your television will never earn any more for you. What could you do if you invested that $6000 instead?

2. Set yourself up for success.

Many people fail at managing money wisely simply because they make it too hard to succeed. Whether it is a strict budget that can’t possibly be kept, or constant spending that can’t be controlled, if you are not setting yourself up for success, you may have a hard time getting there, especially at first. Try setting a budget that you can easily keep. Once you have this down and you’ve gotten into a routine you can start saving more money. By making changes gradually, you can ease into managing your money more effectively and it will be easier to get there.

3. Set goals.

Setting financial goals is a vital component of managing money wisely. When you are working towards something, sticking to a budget or waiting to make a big purchase are a lot easier. Try to set financial goals for this year, five years and then further into the future. Create milestones along the way of what you would like to achieve and then keep these goals in a prominent place. They will help you stay focused and motivated to keep managing money wisely.

4. Pick yourself back up if you fall.

We’re not perfect and even the best of us do make money mistakes from time to time. The key is getting right back up and trying again. Anyone can keep a budget, and anyone can learn to create more opportunities for income. The key is staying motivated, and avoiding having discouragement keep you from managing money wisely.

These are four easy steps that you can start using right now in order to start managing money wisely. Don’t wait to formulate a plan for your financial future. The best time to start preparing for tomorrow is today.

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Originally posted 2020-11-03 15:40:29. Republished by Old Post Promoter

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7 Budgeting Examples

Wednesday, April 29th, 2009

Remember to budget for travel, holidays, birthdays, and more as you find necessary.

When it comes to budgeting examples, one of the best things that you can do is to look at a successful budget and draw from it to establish your own. Everyone has a different idea of what makes a good working budget, and your budgeting examples need to be unique to your needs and wants if you want to get the most out of them. Here are some tips for creating working budgeting examples that will allow you to manage your money more wisely than before.

1 – Keep yourself busy after work in order to keep from overspending.

If you prevent yourself from overspending, then staying within your budget, so make sure to practice this. Find something else to do, like getting a fun second job, going back to school, volunteering, or getting into shape. The more you find to do, the less you will end up spending in the long run.

2 – Watch out for miscellaneous categories.

Make sure that you use well defined categories in your budget to capture how you are actually spending your money. If you put too much money into a miscellaneous category, it will make it significantly harder for you to track what you are spending, and it will make it significantly harder to control your spending in the process.

3 – Determine the difference between wanting and needing.

If you did not know that you needed it, you probably still do not need it. Do not buy things because they are on sale, or because you may eventually need them. If you didn’t want them or need them before they showed up on sale, then do you really need them?

4 – Budget for special occasions when forecasting your expenses.

Include gift giving occasions, eating out occasions, birthdays, anniversaries, traveling, and holidays among others. If you plan on spending money on any of these occasions, then you need to remember to include them in your budget for the best results.

5 – Do not use forms of debt to eliminate other forms of debt.

Taking out a consolidation loan may seem like a good idea, but doing this to pay off other debt is ludicrous. Why create new debt to eliminate old debt? Try consulting free debt counselor groups rather than paying in the long run with a pricey debt consolidation loan.

6 – Budget your time as well as your money.

Time is money; we have all heard this phrase. Well spent time can be just as big an investment as investing money. Take a few moments every day to figure out how you can save on bills by researching lower rates or cutting out unnecessary services. This is time spent that is well worth it.

7 – Keep track of your expenses daily to keep better control over your money.

Call your bank’s automated teller or check your online statement and get your banking settled before you go to bed. It only takes about ten minutes but it works wonders for your budget and making sure you have the money that you think you do.

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Originally posted 2020-12-29 05:58:49. Republished by Old Post Promoter

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4 Things You May Not Know About Budgeting

Sunday, April 12th, 2009

Budget your finances.

While most of us understand the basic concept of having a budget and sticking to it, there are many misconceptions about budgeting that keep people from implementing one. Let’s address the most common things that you may not know about budgeting.

1. It’s not that difficult.

The prospect of frugality frightens many people and we instantly think that we’re going to be deprived and that it will be difficult to keep to our budget. Often, this leads to abandoning the idea all together. However, your budget doesn’t have to be terribly strict, or hard to follow. You can even budget in certain items to ensure that you don’t feel deprived. Here’s a quick tip: Allow yourself a little wiggle room at the end of the month to treat yourself to something special. This is a great incentive that can help you stick to your budget each month.

2. You can’t spend more than you earn.

This is a major problem for thousands of people and many may not even realize that they are doing it. The bottom line is – if you spend more than you earn you’re going to find yourself in deep financial trouble. A budget can help bring you in line and assist you in realizing just how much you make and how much is going out the door every month. Once you get a better idea of how much you really spend, your budget can be very beneficial in keeping you financially solvent.

3. Budgets are not hard to work up.

Although many are under the impression that working up a budget requires special software or templates, in actuality, you can do it with a pen and a piece of paper. The first step towards setting a budget is writing down how much you make every month. Then, catalog how much you want to spend. You may find it helpful to keep a log of all of your expenses for one month to get a better idea of what areas need to be addressed in your budget. Don’t let the prospect of setting up a budget intimidate you. Anyone can do it, and you don’t need special tools.

4. Your budget doesn’t have to be the same every month.

As you get your finances in order, chances are you’re going to be able to free up some extra cash each month. Our bills aren’t always the same and your budget shouldn’t be either. Taking the time to customize your budget every month will help you get a better idea of what you’re looking at and you’ll be able to plan ahead.

Budgeting is not difficult, and really only takes a few minutes of your time every month. For many, it’s the part about sticking to a budget that is the hardest to accomplish. However, you can train yourself and once you do get into the habit of using a budget, chances are you’ll find it easier each month.

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Originally posted 2020-12-12 05:03:51. Republished by Old Post Promoter

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