Why does spending get out of control?:
We Over-focus on Income.
- 1. We ignore the associated costs associated with a purchase: depreciation, insurance and taxes, for example. Instead we focus on the immediate gain: a bigger house, a newer car, a longer vacation. We overestimate anticipated income increases and underestimate expenses when asking: “Can I afford this?”
Spending Shift 1:
Stretch the boundaries of your reasoning about “hidden” or “underestimated” costs. Write them out.
We Ignore Interest Rate Costs
- 2. We will hold savings with a low rate of return instead of applying those savings to pay down debt with a much higher rate of interest. Classical example: a 2% savings account and a 12% – 18% credit card debt.
Spending Shift 2:
Feeling safe because there are savings may be a false assurance if interest is eroding your overall financial health.
We Feel Falsely Secure.
- 3. Asset appreciation does not equate to an increase in spending power. That is, homeowner equity may go up, but disposable income (cash on hand) remains constant. Even so, many people will increase their spending because they think they are better off.
Spending Shift 3:
Think about the difference between
Are you currently looking for an effective way to get rid of your cable subscription? In the past few years, some new alternatives have emerged. These are viable and will allow you to maintain your entertainment, while also saving money! Of course, only one of these options will be right for your particular situation. Below, you will be able to find a breakdown of these options.
Sling TV or KlowdTV
Some demand live television! Unfortunately, there aren’t many ways to watch live television online, without breaking the law. SlingTV and KlowdTV are two excellent options. KlowdTv is a little new to the game, but is quickly establishing itself as a leader. It offers a small number of channel options, but these can be purchased separately, which is definitely cool.
SlingTv is bigger and bolder. With this streaming service, you can watch all kinds of awesome channels, including AMC, SundanceTV and even HBO. Unfortunately, some have reported performance issues with the company’s service. However, they have improved their servers in the past few months, so they’re consistently getting better.
Also, there are many on-demand streaming services, such as
There are many reasons it would be financially advantageous to purchasing a house. You may have recently graduated from college, are a newlywed, expecting your first child, or have accepted a new high-paying job. There are long-term financial advantages and tax benefits to homeownership, but one of the largest roadblocks to purchasing a house is often the down payment. Below is a list of suggestions that you can use to save money towards a down payment on a new house.
• Create a Household Budget – Write out a list of all your monthly expenses. Go through your checkbook and receipts for the past three months and find out exactly how much you are spending per month. Create a budget that you can live with that limits your expenses. Track your spending, this will help you realize what expenses you may be able to eliminate.
• Open a Savings Account – After creating your monthly budget, devote a certain amount or percentage of your monthly income to savings. Your savings should be used only for special purchases or holiday spending to avoid using credit cards or
Did you know that there are some simple ways to save money by doing ordinary things? There most certainly are! What in the world am I talking about? I will explain in this article.
My first tip is for when you go grocery shopping. Are you aware that the generic brands of the foods you normally buy are just as tasty as the name brands? This is true! In fact, very often the generic (or store-name brand) of a particular food item tastes better than the big name brand. Best of all they cost far less. Also at your supermarket, do not be afraid to buy whatever items they have on sale at the time. You can pick up some really great stuff this way. Remember to clip coupons out of your weekly local newspaper. Chances are good that your supermarket advertises in there. You can find out what is on sale and clip your special coupons at the same time.
Tip number two. Do not be afraid to shop at your neighborhood dollar or thrift store! Whether it is a big store like Walmart or
You ever hear that saying “time is money”? It feels like I’ve personally heard it a thousand times from a thousand different people. Even though that phrase is overused and annoying sometimes, it doesn’t mean that it isn’t true. Another common phrase is “money makes the world go around”. Of course money isn’t the physical source that causes the earth to rotate on its axis, but it does play a part in everything humans do on this earth. Money can take many forms, be used for multiple purposes, and can dictate whether someone lives or dies in extreme cases. As much as we would love for everyone to be equal and on a level playing field, that world only exists in fantasy land. The truth is that people who don’t have money want it, and people who do have it want more. The more you have, the more options become available to you.
Since I can remember I’ve had an interesting relationship with money and how I choose to use it. I was raised by a single mom, who worked extremely hard to make sure
You know how when you book a holiday and you know the amount of money you need to spend on that trip – you go, “Right, that’s it! I’m saving up from today – so for the next 3 months, strictly no shopping/no drinking (well, maybe just one glass every now and then) and no crazy night outs!” (You are not alone!)
But imagine if you had this sacred “holiday account” you have been keeping aside $100/$10 every week, for the past year! Having $5,200 ($100/ week) or even $1,200 ($10/ week) handy in this account isn’t bad at all, is it! As the saying goes, “every little bit counts” and it is surprisingly true!
As human beings, we subconsciously live by our values, which is basically an overwhelming desire to pursue what it is that makes you happy; be it a holiday, have a big fairytale wedding, a lifetime Zumba membership, spend more time with loved ones, have the freedom to do what they want – i.e. moving out of home, or buying your own home.
No matter where you are in your life, you have
Regardless of whether you opt to become a leader, or prefer to remain an involved, concerned and committed member of an organization, your ability and effectiveness will be positively enhanced, and your actual degree of personal responsibility, is often directly related to your willingness, ability and understanding of the essentials of organizational budgeting. While nearly every group mandates creating and approving an annual budget, very few do so in a way that actually makes the group more effective. Wouldn’t it make sense, therefore, if groups dedicated time and effort, to training their constituents, and especially their leadership (and most involved and concerned members), to all the essentials and necessitates of the various aspects of budgeting, and how to use it effectively? With that in mind, this article will briefly discuss five things you should know and understand, before you prepare, consider and review a budget.
1. What are the needs, priorities and goals for the organization? Budgets should never be created in a vacuum, but rather must be tools for evaluating needs and priorities, and allocating the best proportion of time, money and other resources,
1. Don’t go inside to pay for gas!
When you go inside a gas station, you are tempted to purchase candy, soda, lottery tickets, and other items that may not cost much, but do add up over time! Paying and staying outside keeps you from spending those extra dollars every time you fill up!
2. Buy a coffee-maker!
Why would an answer to saving money be spending money? When told not to drink coffee everyday, people freak out (understandably). Instead, make an investment in a Keurig or other coffee-maker. This will save you time and money that you otherwise would have spent on McDonald’s coffee, Dunkin’ Donuts, or Starbucks. Soon enough, your coffee-maker will be paid off and you will be saving up!
3. Thrift shop!
Need new clothes for that interview? For a date? Get thrifty! If you put in the effort, you can get a whole outfit for $50, or $30, or even $20! Sure, not buying new clothes would save you even more money, but you aren’t getting that second interview with holy, stained clothes!
4. Sell the things you don’t use!
Do you still have that musical
There are literally hundreds of article and books devoted on budgeting money carefully. I will write on two methods that help me budget money carefully in hopes that others may be able to use this knowledge to help them in their future endeavors.
Method #1: If You Use A Credit Card, Always Check Your Statement Online At Least Once A Week
Most Americans probably own and use a credit card whenever they make purchases, either because it’s convenient and/or because they can get reward points for it. Most Americans are probably aware of the countless stories and articles about credit card debt. However, most credit card debt could be avoided if one pays attention every week to their credit card statements every week.
Whenever I look at my credit card statement every week, I can see how much my balance is as well as what I am spending my money on. When you take a look at what you are spending money on, you can see what expenses you are acquiring that are not always necessary such as eating out or buying things you might not need.
Whenever someone is working on a financial goal, one of the topics that comes up is working with or within a budget. The fact is that there are three distinct types of budgets, each with their own structure and approach. This subject is definitely not a “one size fits all” topic. Understanding the different types of budgets will help you track the right information for the task you are working on.
Most of the time when someone is talking about their budget, they are referring to an operational budget. An operational budget is one that tracks ongoing financial activity. This the day-to-day budget of a business or a family.
An operational budget tracks both income and expenses. The purpose of this document is two-fold. First, by tracking all financial movement, or “cash flow”, a person can get a much clearer picture of the financial situation. Hopefully, this picture will allow a person to make any desired changes in an efficient manner. Second, the focus of this budget is on the difference between income and expenses. In a business, this is the profit; for a family,
The first month of the year is over and now it’s time to compare how you did last month. But you can’t because you don’t have anything to compare to since you haven’t yet completed your budget for the year.
It is important that you prepare a budget, no matter how small or large your business is. It’s almost impossible to experience growth and profitability without one.
Here are three reasons why you need to have a budget for you business.
1. Plan for Profit. The number one reason you need a budget is so you can plan for profit. You can’t just say “I’m are going to make $500,000 this year” without documenting how you are actually going to reach it. See within your budget you will have detailed out where this income is going to come from such as the different services and/or products you offer. You will break down which months will have higher revenue then others so that you can plan your spending. You with chart out the new opportunities and program launches costs as well as the offsetting and expected revenues. Listing
If you want to save more money, you have to start using your common sense. If you are trying to keep up with the Jones’s, stop; because you will go broke. Always try to live within your means, or better yet, try living slightly below your means.
I’m not talking about going to Sam’s Club to get the free food samples that they hand out and consider that your super. I’m talking about taking an assessment of where you are spending your money and whether it is totally necessary to buy the things you are buying. It boils down to your needs versus your wants. Just make sure that the things you buy are truly important, and don’t spend more than you make.
I have friends and family members who will go out and buy their kids a pair of basketball shoes that cost, are you ready for this, $650 dollars or more. There is a big disparity in the cost of basketball shoes; they could have purchased a cheaper pair in the $50 to $100 dollars’ range, but if you listen to your kids, quite
If you have recently graduated from high school or college and are entering the workforce, establishing credit and developing a sensible household budget is the foundation to your future success. Creating and sticking to a budget based on your current income with a commitment to spend within your means is the first step to creating long-term financial success. The following suggestions will help you develop your budget.
• Monthly Income – Depending if you are a salaried employee, paid hourly, or receive tips and commission income you will need to determine your average monthly income. If you receive 1099, tip, or commission income, you should gather your most recent pay stubs and last year’s tax return to calculate what you typically earn on average each month after taxes. You should also consider: child support, alimony, disability, or cash income that you receive as part of your monthly income. Once you’ve added up all the sources of your typical monthly income you now know what your expenses can be.
• Monthly Expenses – Look at your checkbook and your most recent bank statements to determine what you
You can do a lot more with your finances if you learn how to properly budget and save. You could go from sitting at the house watching television during your paid time off of work to taking a nice vacation with the spouse. You can do much more with your life if you learn how to handle your money like a pro. I’m going to give you 3 tips that if done correctly and steadily will be very effective. Some of these tips may seem obvious; however, too many people fail to do them!
1. Learn To Budget – As painful as it may be this all comes down to the old fashion way of grabbing a pen and a piece of paper and doing some math. Figure out your average monthly income and write that number down. Then, subtract all your bills. After that, take 5% or 10% of the remainder and add it into your savings account. Finally, you have to reward yourself. So hopefully you have something like $300 left, so take $100 and use that for recreation and put the remaining