How To Manage Your Money Better – Need to Spend Money

How To Manage Your Money Better - Need to Spend MoneyWhen it comes to money management everyone seems to have an idea of what works best. While all of those ideas are great in theory none of them seem to matter to most people when it’s payday and a really hot pair of shoes are staring at them from a shops window. The three things that have seemed to finally work for me and allowed me to go on lavish trips, shopping sprees and finally move out west was having a savings account not linked to my checking, creating a budget and setting up various types of daily and transaction alerts from my numerous accounts. Having a savings account is what most people think is the key to saving but it’s the complete opposite of that. I’ve stood at checkout lines many times trying to make a last minute decision on purchases and always end up transferring money from savings into checking within minutes. After a few times doing that I decided to look into other ways and opened up an ING account. With ING I can set up direct deposits from my checking account and in order to withdraw funds I have to wait five business days and that gives anyone enough time to get over an impulse buy and keeps their savings account growing. Creating a budget and having things on paper (or on a screen most likely) is a way to visual where a person wants their money to go, what they actually need to spend money on and give themselves a set amount of money for fun things like dining out, drinks and shopping. I always feel accomplished when I create a budget because it lets me visualize what I’m hoping to achieve.

Once I have it all written down I can begin to take control and do things like mass grocery shopping, pay off my bills, put the allocated amount into my savings and then begin to shop with the rest. It’s win win. My internet service doesn’t get cut off while shop online for shoes and dresses. The one part of budgeting that I dread is receiving all my transaction alerts. I have it set up so that I receive an email for every purchase made that’s over five dollars. In additional to that I have the (dis)pleasure of waking up to my daily balance via email. As if waking up isn’t’ bad enough on its own, having my spending staring at me through half open eyes is enough to shock me into putting a hold on my spending for a few days. All in all, there are many ways for us to try to mange our money better but those were a few that have worked for me. No matter what anyone does the only surefire way to not live check to check is by living at home, not having a social life and not having any bills such as cellphone, cable or internet. Being that that’s not realistic or fun all anyone can do is try and try again. And put the $400 pair of shoes down for the time being.

How To Manage Your Money Better – Don’t Spend It

How To Manage Your Money Better - Don’t Spend ItHow to manage your money better always seems to be a hot topic for people today and throughout time. Just how you do you it? I always tell people the best way to manage your money is don’t spend it. The problem with that answer is no one likes it and I do not blame them. If you are waking  up early to go to a job your not particularly thrilled at to make money you are going to want to go out a reward yourself by spending your hard earned money, right? So here are some tips to be able to work and play.

1. Before you go out to play make sure that you have enough money to go do what you want to do. Make sure that you are financially secure to endeavor on the activities you would like to.

2. Make sure you are aware of where your money is coming from. How often do you get paid? Do you have extra money saved? If not is it really worth it to go out for the night?

3. Make sure to always manage your bank accounts. Always keep records of each transaction. Make sure to balance your check account once a month. This way you will always stay on top of all withdrawals and deposits.

4. Budget your money. This is very important if you would like to manage your money better. This way you can see exactly what you spend most of your money on. If there are some things that are taking up the majority of your money it will let you really think do I really need to be spending all that money on this?

5. Start saving money. Each month put away an allotted amount and then do not touch it. I repeat do not touch it. They are some great options with different savings accounts and then you can start to earn money by letting it sit there.

6. Make sure to use your credit cards wisely. Remember a credit card does not equal free money. You are temporally borrowing this money and will have to pay it back and maybe plus some. So please use sparingly.

Like I said in the beginning the best way to manage your money is not to spend it, but that is not fun and people work so they can enjoy their life while they are not working. Just remember that it is very important to manage your money better. By following these tips you should be on your way to understanding your money spending in a better way. This will allow for you to cut costs where needed so you can go on that vacation you have dreamed of.

 

How To Manage Your Money Better – Manage It More Efficiently

How To Manage Your Money Better - Manage It More EfficientlyThough not entirely intentional I have been partaking in an evident unrelenting disregard to the concept of managing my money in a proper fashion and have, over the years, managed to aggressively defy such a notion.I have never exactly been one to manage my assets wisely, as I tend to forget about the long-term goal of expanding my seemingly decreasing nest egg.  I do so by partaking in a vicious cycle of getting caught up in the moment and begin swiping my credit cards left and right in a flurry of excitement over new baubles that advertisements and sales departments make me feel as though I “need.”Of course, there are countless other occasions where I need no assistance in throwing my budget woes to the wind.There always seems to be an increasingly large trail of charges that I conveniently and vehemently deny are mine; these thoughts of mine are futile, because there has never been once such occasion where the damages to my bank account were not done by my own hand. On one occasion I managed to buy fifteen candles, because I thought it was such a good deal; I also thought I was being savvy with my money because I use candles so much that it just had to be a smart investment. In hindsight, it is such instances that I can see clearly that it is no wonder I cannot seem to hold onto any type of substantial amount of money in my bank accounts. I struggle to differentiate between “wants” and “needs” on a constant basis, and I know that I am not the only person who puts themselves in such a situation.

I had read about a concept to help one manage their money more efficiently, and it consisted of leaving their credit cards out of their wallet or purse and carrying around cash instead when going shopping.  I can honestly say that my “frivolous” expenses have decreased substantially after humoring this advice.  When indulging in online purchases or swiping a credit card at a retail store, it does not seem like an expense at the time.  All you are doing is delaying the inevitable realization that you are depleting your precious bank account.  The idea of handing cash over for said purchases ingrains the concept of spending money you do not have. Another method of managing your money better is drawing out an expense chart to help you properly determine how much “play” money you are able to spend without detrimentally hurting your ability to make ends meet.  This expense chart will help remind you about upcoming bills, such as rent and utility that you may forget about when pursuing “retail therapy.”  Viewing a physical reminder that you paid five hundred dollars in vet bills four months prior, can help curb your unnecessary expenses and help you manage your money better.

How to Make a Personal Budget – Financial Maturity

How to Make a Personal Budget - Financial MaturitySo you are tired of having more bills at the end of the month then money and it just seems like you are in over your head every single month.  Having more month then money is leaving you feeling financially frozen but defrosting the bitter coldness of being tight financially takes skill and know how.  The skill is very easy to learn and once you know how, you can vow to live with financial maturity. Some find a personal budget to be restrictive but on the flip side it can be a very freeing practice for an individual looking to learn the ways of the wealthy.  Being wealthy grows from the result of spending less than you earn.  This is the first key to creating a personal budget. A common financial goal is to have money left over at the end of the month, but a bigger common mistake is not being proactive by way of keeping a personal financial budget.   Not having a personal budget can leave you feeling financially frustrated because money can come and go blindly when there is no budget in place to monitor true necessities versus a wish list.   To avoid the financial fumble of having money one minute and not having it the next a personal financial budget is the best way to conquer financial frustration.  Financial budgets are the best way to be proactive in becoming financially emancipated.

When creating a personal budget it is important to be as detailed as possible and gather as much information necessary.  Anyone can create a personal budget as long as the most important and simplest rule is followed, which is spending less money than you make.  Playing financial housekeeper is a step toward financial freedom.  This is why wealthy people are wealthy.

  • After all sources of income have been identified, it is very important that money, that has already been spoken for is taken out first.  These are expenses that are the same cost month after month like car notes, mortgage, phone service, etc.
  • Collect all financial documents such as, bank statements, supplemental income sources and expenses.   It is very important to understand how much money is available on an average.
  • Document all income including supplemental sources of income, being mindful that paychecks are tax deductible, so considering the take home pay is fine and record all of the income as one monthly amount.
  • Comprise a list of monthly expenses.  Create a list that includes all of the expenses you plan to incur over the course of a month, such as a car payment, mortgage payment, auto insurance, groceries, utilities, entertainment, dry cleaning, retirement or college savings and basically everything you spend money on.
  • Categorize expenses into fixed and variable.   Fixed expenses do not change and are the same month after month.  They include expenses such as your mortgage or rent, car payments, cable, Internet service, credit card payments, etc.   These expenses are part of your livelihood and for the most part will not change in the budget.  Variable expenses do change month after month, and included items like eating out, grocery shopping, and entertainment.   You must pay close attention to this category because it can fluctuate.
  • Total your monthly income and expenses to see if you have money left, or if you will need to cut back to fit the budget.
  • Once you have figured out all of your expenses, your anticipation is that the income and expenses are equal.   Everything has been budgeted for specific expenses.
  • At this point if you noticed that expenses are greater than income you would review your variable expenses, and choose which items to cut back on in order to save some money.

The most important part of having a budget is to review it each month to make sure everything is good to go.  When you review your budget you will identify where you are on track and where you need to make adjustments to get back on track.

How To Make A Personal Budget – Prevent a Forced Bankruptcy

How To Make A Personal Budget - Prevent a Forced BankruptcyLiving in a consumerist society, we tend to spend more than we bring in, leaving our bank accounts with little left to the imagination. The best way to prevent a forced bankruptcy is to create a personal budget, which will only take minutes of your time, and possibly save your bank account. Creating a personal budget will keep you in check with the bills, taxes, and spending, all while remaining stress free. The first step to making a personal budget is to figure out the ugly numbers of how much you are forced to spend ever year, such as how much money is used on bills, taxes, and the other fixed numbers. This is a good start to making a cash flow statement—which is basically a list of fees and how much you are worth in the end, or how much leftover money you are saving. To keep it simple, we can first figure out the income that you make overall. In order to do this, we need to find out the total income that you make from your full time job, part time job, or other sources of income such as investment on stocks. After taking note of your revenue, we can split the fees, bills, and miscellaneous things into different categories such as shelter, transportation, groceries, and other expenses. Under shelter would be the subcategories mortgage, utility bills, house insurance, and taxes. For example, if the mortgage every year was fourteen thousand dollars, the utility bills up to three thousand five hundred dollars, and property taxes up to around two thousand dollars, in total the cost would be nineteen thousand five hundred dollars.

Keeping this in mind, we do the same thing for transportation, sub-categorizing it with loan payments, insurance, gas, and maintenance. Similarly for the bills that are not fixed, including groceries and other miscellaneous items such as clothes, phone bills, social events, and credit cards. Eventually, you have all the numbers recorded and come to the point where you subtract the money spent, from the money made, and contemplate about the money you want to save, from the money you want to utilize for more expenses. From that you obtain the leftover money not used on expenses. If you find that the total cash out is eighty one thousand dollars while your total income is ninety thousand dollars, you have nine thousand dollars left over yearly, which you would thus save to buy that red Lamborghini or that new house that you were saving up for. Creating a personal budget can be fairly simple, and it will keep you from avoiding that unneeded pain and stress of making sure you can keep up with your bills.  After making a personal budget, the only thing left to do is to review it every so often. You can always make changes to the budget of course, adding or subtracting from the expenses and unfixed bills to save more. Remember, making a personal budget will make you more organized, and give you satisfaction when you reach your end goal.

How to Make a Personal Budget – Purpose of your Personal Budget

How to Make a Personal Budget - Purpose of your Personal BudgetPersonal budgeting, while not particularly difficult, tends to carry a negative connotation among most consumers.  When I hear the term “budgeting” it reminds me of my Father sitting at the kitchen table trying his best to explain why it was important to have a financial game plan. Unfortunately all I heard was, “I can’t buy those shoes, I’ll have to settle for a less expensive tennis racquet, and OMG he wants me to save my own money to buy that new stereo system!  I use to feel like I was the only person on Earth struggling with being a good budgeter – until the nightly news made it plain that we as Americans had drifted off the straight and narrow and wholesome budget path a long time ago. So let’s get back to personal budgeting.  It’s never too late to learn to do something that would have saved you much grief if you had listened to your parents and some of the ‘experts’ that you could at least understand.  A PERSONAL BUDGET is a finance plan that allocates future personal income towards expenses, savings and debt repayment.  Past spending and personal debt are also considered when creating a personal budget.  There are several methods and tools available for creating, using and adjusting a personal budget.  As a matter of fact there are so many theories and concepts on personal budgeting that you can be quickly overwhelmed and sink back into that method you’re using now that’s not really working so well. KEEP IT SIMPLE…the more complicated the budgeting process is, the less likely you’ll maintain.

The purpose of your personal budget is to identify where your income and expenditure is present in the common household; it is not to identify each individual purchase ahead of time.  Here are some basic guidelines to help get your monthly budget started. Categorize your expenses…when you begin setting up a monthly budget, start with big categories before breaking your budget down into smaller expense categories. From your list of expenses, develop two separate budget lists, one for essentials and the other for extras. Look through these lists to find flexible budget expenses where you can cut back (please not the Prada bag.) Estimate what you spend.  Go through your checkbook and other receipts you’ve kept recently so you can track how much you actually spend on both essentials and extras. Add up your budget essentials list and extras list separately.  Subtract your essentials first, if you still have money left over, subtract the extras. If you still have money left over, congratulations!  If not, look for places on your extras list to cut back and prioritize for next month.

How To Make a Household Budget – Essentials are Things That You Need

How To Make a Household Budget - Essentials are Things That You NeedCreating a household budget is very similar to creating a regular budget. It is important to keep your finances in order to keep your home happy. Use a notepad, Microsoft Excel, or budgeting software to help you complete your budget. Track your expenses and make a list of everything that you spend money. Start with the big items. This would include rent or mortgage, bills (water, gas, electricity), car and vehicle payments, and insurance. From here, work down and calculate your smaller expenses like supplies and groceries.  Calculate your every day essentials like gas. Essentials are things that you need, not just the things that you want. Keep track off everything you buy and determine which things are essentials and which things are luxuries. Once you have all of your expenses tracked it is time to move on to earnings. Track down your earnings. This not only includes your salary, but “under the table” jobs, tips, money your aunt gave you, money you find, and any money from any other source. Earnings are different from income. Make an area in your budget sheet for your monthly income. This is what your home makes after taxes have been taken. This is not your total earnings for the time period, but the amount on your paycheck. Align your monthly income and your totally household expenses. Make a final list of your expenses into necessities and luxuries. Luxuries are items that can be cut out, such as eating out for lunch, going for coffee, having a drink at the bar, and buying magazines.

If the total amount of your expenses is greater than your income, it is time to cut back on your spending. The area you cut back on will not be your necessities, but your luxuries. You may have to cut out your expensive phone plan or your coffee dates. If your monthly income is higher than your expenses, don’t splurge! Put this money into your savings. The money could also be used to save for college tuition, or to start a second mortgage. Create weekly and monthly buffers that you can afford. Buffers will allow you to be able to go slightly over your weekly cash spend limit without killing your wallet and putting you in further credit card debt. A buffer can also save you when it comes to unexpected bills whether it’s medical, car, or house problems. If this money does not get spent for the year, you will have a little extra money to put into your savings. Calculate your goals and how much they are going to cost. For example, if you are planning on buying a car, calculate how much it is going to cost. If you plan in advance for large items like this, you will not need to draw from your long-term savings. Aim to buy things only if you have saved for them. Create a new budget, accounting for the changes you have made. Cut out luxury items, save the necessities, and plan for large spending.

How To Do A Household Budget – Creating a Successful Budget

How To Do A Household Budget - Creating a Successful Budget

A household budget is something that every household make and keep track of, but often times don’t. Creating a successful easy to follow household budget helps people realize where their money goes each month and what items can they cut out of their spending. Having a household budget planned out gives households the freedom to live comfortably within their given financial situation. First thing first, you are going to want to get organized. Start collecting the information you are going to need—pay stubs, receipts, bank account statements, etc. Write down all your expenses on paper or put it on the computer in an excel program. Add up two separate columns: variable expenditures and fixed expenditures. Fixed expenditures are going to be things like rent, car payments, tuition, etc—its bills that are the same every month that you will be paying month after month. Variable expenditures include anything from food to entertainment. Once you have your expenditures accounted for it is time to calculate how much money you have coming in. This means adding up your monthly wages, investment returns, and any money you might receive from the government.

Now that the money you have coming in and the money you are spending is accounted for you can start to budget successfully. The most important thing when it comes to budgeting successfully is making sure you have enough money to cover your necessary expenses. These are bills you have to pay to stay in your home, keep the lights on, stay out of bankruptcy, etc.  Once these necessities are paid for the remaining income is yours to do with as you please. Spend some on things that you enjoy doing and try to save as much as possible. Household budgeting can get tricky when your income is constantly fluctuating and job security is virtually non-existent, but dedicating yourself to creating and updating a household budget is your first step to financial independence. If this is your first time creating a household budget then grab all the required information (pay stubs, expenses, receipts, bills, etc) from the previous three months and calculate a household budget from there so you have a nice average to work off of. Sit down, do your due diligence, and pursue a debt-free, stress-free life by establishing a household budget and sticking to it.

How To Do A Household Budget – Planning Financial Situation

How To Do A Household BudgetA household budget is something that every household make and keep track of, but often times don’t. Creating a successful easy to follow household budget helps people realize where their money goes each month and what items can they cut out of their spending. Having a household budget planned out gives households the freedom to live comfortably within their given financial situation. First thing first, you are going to want to get organized. Start collecting the information you are going to need—pay stubs, receipts, bank account statements, etc. Write down all your expenses on paper or put it on the computer in an excel program. Add up two separate columns: variable expenditures and fixed expenditures. Fixed expenditures are going to be things like rent, car payments, tuition, etc—its bills that are the same every month that you will be paying month after month. Variable expenditures include anything from food to entertainment. Once you have your expenditures accounted for it is time to calculate how much money you have coming in.

This means adding up your monthly wages, investment returns, and any money you might receive from the government. Now that the money you have coming in and the money you are spending is accounted for you can start to budget successfully. The most important thing when it comes to budgeting successfully is making sure you have enough money to cover your necessary expenses. These are bills you have to pay to stay in your home, keep the lights on, stay out of bankruptcy, etc.  Once these necessities are paid for the remaining income is yours to do with as you please. Spend some on things that you enjoy doing and try to save as much as possible. Household budgeting can get tricky when your income is constantly fluctuating and job security is virtually non-existent, but dedicating yourself to creating and updating a household budget is your first step to financial independence. If this is your first time creating a household budget then grab all the required information (pay stubs, expenses, receipts, bills, etc) from the previous three months and calculate a household budget from there so you have a nice average to work off of. Sit down, do your due diligence, and pursue a debt-free, stress-free life by establishing a household budget and sticking to it.