Budgeting Finance

For many, having and keeping a car will be one of the greatest costs you have, and nowadays we are all trying to spend less and improve earnings. Some may be experiencing debt issues or trying to pay off credit cards and thinking how to spend less. There are three primary expenses for a car: petrol, insurance and maintenance. It's in these three areas in which you will be able to make savings.

i) Fuel savings

Avoid wasting money on petrol by a) keeping your rev counter below 3000 rpm. Also once you go above 55 - 60 mph you start you use more petrol, so try and keep under these speeds b) not putting your foot to the floor. By pressing your pedal to the metal and using quick acceleration, you use up fuel much faster than necessary. Go easy on the accelerator and you will save on your gas bill; c) keeping pressure on your tyres at their recommended levels, because if you don't, you will discover that they will cause you to use more petrol; d) always using the right gear if your not driving an automatic; e) eliminating anything could cause additional drag on the roof, such as roof boxes and roof bars.

ii) Insurance savings

Hunt around for better insurance premiums. A lot of us remain with the same insurance provider for a long time because we can't be fussed with the hassle of swapping companies. Many don't know how much they could be saving by just changing insurance providers. Search around online to see what better deals you can get. There are some useful insurance comparison sites available.

iii) Garage savings

When it comes to garage servicing, you have certain items that require regular expenditure like exhausts, tyres and braking system. If you shop around, you will find that there can be a significant difference in costs for these products from one garage to another. It's definitely worth comparing different garages. Depending on what country you live in, the government may require yearly automobile checks. These checks and any resulting repairs can be quite costly. Look for a garage that has a good reputation within the community, and also has competitive prices. Ask buddies and neighbours who they get to do the work on their car and how much they usually pay. An excellent garage will normally always manage to build a good reputation in a neighbourhood and have loyal and regular customers.

Interested in science, music, finance and computers.

Free UK Debt Advice

View the original article here

This post was made using the Auto Blogging Software from WebMagnates.org This line will not appear when posts are made after activating the software to full version.

Budgeting is a lot like dieting. Neither are fun and are approached from a position of doing without something or sacrificing. It is a wonder that these topics are written or read about so much. Perhaps we are all looking for the magic bullet that fixes everything painlessly and effortlessly in order to become thin and financially fit.

There actually is a better way than sacrificing. It starts with what we really want to achieve and implementing a positive non-sacrificing means to accomplish want we want.

Instead of thinking of budgeting as doing without, think of it as your spending plan. This is a very quick and easy exercise. Each month make a list of each category of spending and savings. Plug in your anticipated expenditures and spending based on previous months. Be sure to include in your planned money outgo the extras for fun and entertainment that you wish to do for the month. Total the amounts up and be sure that the planned expenditures do not exceed your income. Make appropriate adjustments if necessary. Make your savings plan the first automatic debit of the month and all else follows. Keep track of all income and all money that goes out on a daily basis under each category. Consistent tracking has a way of curbing your destructive actions and really takes a very minimal time on a daily basis. You develop a constant awareness of where your money is going and also develop a more discriminating thought process as you track your spending. You will find that less adjustments will need to be made as months go by, and that you will be putting more into savings, paying off credit cards, etc. You will also find that you will be more mentally inclined not to use the cards once they are paid off, because of the increased good feelings you experience by spending your money better.

I have found that it is very rewarding to end the month with my savings growing, all bills paid, and having had special times that were already financially planned. Not only do you become very aware of your financial fitness, there are no guilt feelings and you start to feel good about where your money is going. As you start this path and continue on to achieve financial peace of mind, you will continue to start spending your money more wisely and will become more aware of ways to put your money to work for you instead of you working for it!!! It is a very empowering and sustainable way of handling your financial life. After all, it is your money!!

View the original article here

This post was made using the Auto Blogging Software from WebMagnates.org This line will not appear when posts are made after activating the software to full version.

One of the most frustrating aspects of suffering from bad credit is that it becomes extremely difficult to gain better credit to improve your rating. Without access to better forms of credit, you end up paying more on worse types of credit facilities, which means that you have less money available to pay off your regular outgoings and tackle outstanding loans. It's clear that it is very easy to enter into a vicious circle where you are constantly trying to get your head above water.

The good news is that it is possible to improve your credit rating, it just takes a lot of work. That doesn't mean it can't be fun however, and that doesn't just apply to the satisfaction of ultimately improving your rating: making sure you are getting the best deal and value is a useful skill and one that your friends are likely to wish to utilise!

Firstly, make sure that any and all financial obligations in the month can be met. Your first target should be to reduce any high interest debts, whether this is a mortgage, a credit card bill or other outstanding loan. Making sure the money is available and paid to the creditor on time may involve making some adjustments to your lifestyle or foregoing a few luxuries or evenings out, however this is only for a short period of time and won't be something you will have to do forever.

If you have a number of loans, you may be able to consolidate these into one loan, and pay a single interest rate on this as opposed to multiple loans at various rates; you will need to go through these and add up what the costs are to determine which method is cheapest.

To free up more money, always shop around for your services. Things like insurance policies can often come 'packaged' with a mortgage, but should be reviewed every year to make sure they are competitive. Some policies include too much cover or for situations you don't need... you can find that looking at different quotes may save you up to half your current payment. Prepare a list of items and their cost and go through this with an advisor from different companies to see which works out best.

Do the same with your energy suppliers, you can find that getting both gas and electricity from the same supplier may entitle you to discounts, or often there is a 'locked' rate you can apply for which caps prices for a year. Given that energy costs have only risen in recent years, fixing the cost is a good way to avoid sudden rises and also allows you to know what the exact amount will be.

Be careful when you shop for groceries too, the consumer index has seen some of the biggest rises in household items, and supermarkets are trying their best to get shoppers to increase their spending at a time when people have less money. Try to prepare a meal planner so you can re-use ingredients that you can buy in bulk (and so save money and reduce wastage). Be prepared also to shop around for the best deals on the ingredients you need, rather than opting for the convenience of the nearest or largest supermarket.

Once you have some breathing room in your budget, try to overpay on the largest or most expensive debt that you have. It doesn't have to be by much, but this will have two bonus effects for you. Firstly you will pay off the capital of the debt faster, which means overall you will pay less on the interest on the outstanding debt that you owe. Secondly, it will send a signal to the credit companies that you are paying off you debt, rather than maintaining a 'holding pattern' with minimum repayments. For a large debt such as a mortgage, overpaying by as little as £50 per month can knock years off the overall term of the mortgage and end up saving thousands of pounds in the long term.

By strategically tackling your debts you will reduce the overall amount that you owe, and by having to allocate progressively less disposable cash to settling payments you will have more funds available to put into savings for a rainy day.

Steve has recently graduated and is always on the look-out for tips to improve credit rating and reduce his monthly debts.

View the original article here

This post was made using the Auto Blogging Software from WebMagnates.org This line will not appear when posts are made after activating the software to full version.

Early Warning System technology (or EWS for short) is a widespread system used by lending institutions to look into the lending and spending habits of their clients: people like you and me. It is more generally a system of risk management, which identifies potential threats to the profit margins of lending institutions, by recognizing the bad habits and practices of their customers. Many people who become aware of EWS are also sometime aware of a program called ChexSystems. If you are in the majority of people who have not heard of it, ChexSystems is a technology system similar to that of EWS, except that ChexSystems focuses on deposit accounts instead of credit and loans. Essentially, EWS technology is used for examining behavior related to credit lines and loans, whereas ChexSystems is used for money you have already deposited into the bank.

EWS looks for bad practices or specific habits that consumers may have related to their loans and credit lines (i.e., late payments, overextended balances, and usage of credit margin). ChexSystems, in a similar fashion, looks for patterns of things like odd or somewhat suspicious account behavior, account overdrafts, fraudulent checks, and negative balances.

While these distinctions explain the differences between the two processes, what they do, and what they are designed, or rather intended to do, a certain confusion among consumers still persists. Why do lending institutions use Early Warning System technology even after using ChexSystems technology? This is a fair question, as the practice almost seems redundant. And while it is easy to understand why banks implement these strategies, it is normal to feel slightly confused by the knowledge that your lending institution either knows, or is trying to know, more about you than you originally intended.

It is also normal to wonder why, if a bank uses a method like ChexSystems, they still need to double up on methods to study how you borrow and spend your money. The most important difference to take note of, is that ChexSystems focuses on how you spend money you already have, and EWS focuses on how you spend money that you owe. For this reason, it makes lots of sense why a bank would double up. They need to examine both habits, to accurately assess risk and reward of an individual customer, in all areas of financial behavior.

Fraud prevention and consumer reporting are extremely important aspects of the banking and lending industry. For the average customer who pays their bills on time and has average usage of both their credit and checking accounts, neither of these systems of examination will encounter such consumers. But these systems exist to limit losses for both institutions, and where identity theft and other fraud is involved, the consumer. So, if a few hoops need to be jumped through, to be certain that no one is being taken advantage of, then both ChexSystems and EWS are observed as worthy additions to the application and extension process of participating in the banking system.

Andrea DeLuca is something of a cross between a ninja & a warrior. Having overcame her battles with negative credit. We all have to start somewhere when it comes to restarting your credit. Andrea hopes to help others create a better and more thorough way of rising above the downfalls of having negative credit. Her main site: Rebuild Credit. Check back for great tidbits and to understand your credit better!

View the original article here

This post was made using the Auto Blogging Software from WebMagnates.org This line will not appear when posts are made after activating the software to full version.

Identifying all expenses is crucial when preparing a budget. If you miss expenses when you first prepare your budget, you'll blow it. That's not a major drama & there's another article in this series on how to manage budget blow out. However, if you can get it right in the first place, you won't need to refer to that article at all!

There are essentially 3 types of expenses:

Fixed Expenses - those which are almost impossible to avoid & difficult to cut down - examples are car registration, mortgage payments, electricity
Variable Expenses - those which make life more enjoyable & are largely a choice, but can vary - examples are health insurance, gym memberships, haircuts, clothes, mobile phones, internet etc
Optional Expenses - your fun money - examples are alcohol, entertainment, eating out, lunches, coffees, magazines, take-away etc

We need to try & find all expenses across these categories.

Here are a couple of simple budgets how-to tips to catch them all:

Fixed & Variable Expenses:

Get out your last 3-6 months worth of bank statementsIgnore any cash and cash card transactions for discretionary spending (e.g. lunch, magazines, take-away etc)Use a highlighter to mark all bill payments which are being automatically being from your accounts on a regular basisGet a second highlighter colour & mark any irregular bills - these may include car registration, electricity, taxes & duties etcFinally look for all other expenses - haircuts, petrol, clothing etc

Discretionary Expenses:

Buy a tiny pocket notepadFor the next month, write down every single cent you spendTry not to change your spending habits, just record themSome of these will fall into 'Variable' Expenses - just record them all for now

Making sense of it all:

Get yourself a budget template. There's a free one available on our website.The budget template should prompt you for most of the expenses you've managed to uncoverEnter & add them up as appropriateMethodically go through your notebook & highlighted expenses, to make sure you don't double any upAlmost certainly you'll find the budget template prompts you for expenses you'd completely forgotten about. Go to work to find out how much you spend on those.

This is probably the most labour intensive part of the budgeting process.

However, of all the articles in this series, THIS is the one you want to absolutely make sure you follow to a tee!

The benefits you'll reap for doing this work diligently will be more than you can imagine:

You will greatly reduce your chances of budget blow-out and hugely increase your chances of budget success.You will reduced budget frustration and enjoy a bigger sense of achievement.Your budget will actually work!

When it comes to making sure you uncover all hidden expenses, the old quote:

"The labours are few, but the Harvest is great", certainly applies.

Putting the effort into identifying ALL expenses is a huge advantage and you will take a giant leap forward on your path way to financial success.

So get stuck into it!

Wishing you much Prosperity, Miriam

Miriam Castilla's passion is teaching people how to be money smart.

Discover a quick & easy system which puts an end to financial stress, starts saving your money and run your budget on auto pilot. Download your Free Budget Template & learn How To Be Money Smart here. Be sure to visit the Budgets How-To Blog for lots of juicy budgeting & saving tips!

Here's to YOUR Financial Success!

View the original article here

This post was made using the Auto Blogging Software from WebMagnates.org This line will not appear when posts are made after activating the software to full version.

When it comes to how to start saving, there are really only 2 ways:

You can increase your income OR you can decrease your expenses.

Because I know you REALLY want to get this wealth show on the road, I suggest you get cracking on both!

We talked about easy ways of culling expenses in our last article.

Now to the fun bit! In this 'Budgets How-To' article, let's talk about some things you can do TODAY which will make your income sky-rocket.

Here are the 3 easiest ways to increase your income:

Be The Best!Follow Your Passion!Think Outside The Square!

Let's look at these in a bit more detail:

1. Be The Best!

Chances are, you're already doing something to earn an income.

My suggestion to you is: Get better at it!

Get so good, that you become the best. Once you're the best, you can literally name your price. Expertise is hard to find & companies will pay huge sums to get the best of the best in a particular niche.

Make yourself indispensable at your work place - educate yourself & practise your craft, whatever it is.

It's not about giving more to your boss for the same monetary reward. It's about educating yourself & improving your skill level so that you can command a high price down the track - and you get to do this on the job, whilst being paid!

This is a great strategy if you like what you do for a living now.

2. Follow Your Passion!

If the first strategy doesn't appeal to you it's probably because you're working in an area you don't feel passionate about. You might be looking to increase your income so you can get out of what you feel you have to do now just to get by.

Here's a thought: You can only get truly good at something if you actually enjoy doing it. You can only become the best at something, if you have a deep & burning passion for it. If you really hate what you do now, consider getting out and following your passion.

You may have to start at the bottom of the rung & make some sacrifices, but at least you'll be able to see your new path and goal laid out before you. This will make you feel excited, alive and that you're living your life on purpose.

Before making any hasty moves, be sure it's what you truly want to do - listen to your heart and best discuss it with your partner.

3. Think Outside The Square

If you're quite happy where you are now and you really just want to earn a little extra or are looking to make a slower transition, just think outside the square!

There are countless ways of earning a bit more money on the side. You can do it online or offline. You can sell on eBay, drop ship, sell, develop & buy property, become a consultant, develop a website, sell eBooks, the list is seemingly endless!

Each capital city hosts many wealth creation seminars every year. Attend one!

There are mentors & programs everywhere full of ideas & inspiration. You'll be introduced to experts who can teach you their own money-making strategies. There truly is something for everyone & every personality.

All you need to do is to make a decision that you will change things. Then act on it! The rest will take care of itself

Budgets How-To training is not just about teaching you to add up the numbers & making the pennies stretch. It's about making you think differently and developing a whole new relationship with your money. It's about managing your money & telling it where to go.

I like to tell my money to go forth & multiply.

Others seem to tell their money to go get lost.

Which would you prefer?

I truly hope you enjoyed this article and will use these techniques. Applied together with other principles, they will transform your money situation faster than you can ever imagine!

The thing with money is that it's fluid and it just loves to gather momentum. Once you start making some changes to the flow of money in your life, supported with some positive, passionate energy you will be absolutely amazed at what happens next.

Wishing you much Prosperity,

MIRIAM

Miriam Castilla's passion is teaching YOU how to be money smart.

As an award winning finance adviser, she knows that most people stress about money She also thinks it's completely unnecessary!

You see, nobody ever really teaches us how to manage our money. So most people just 'wing it', hoping they pay all their bills and accumulate some savings along the way. But there is a better way!

Download your Free Budget Spreadsheet here and discover how to run your household budget on auto pilot.

And be sure to visit the Budgets How To Blog for lots of juicy budgeting and saving tips & tricks!

Here's to YOUR Financial Success!

View the original article here

This post was made using the Auto Blogging Software from WebMagnates.org This line will not appear when posts are made after activating the software to full version.

When it comes to the question of how to start saving, there are actually only 2 ways to do it.

You can increase your income OR you can decrease your expenses. It's Simple!

I suggest you get cracking on both!

In this article we'll focus on reducing expenses.

There are 2 key tasks you must complete to effectively cull those pesky expenses:
Task 1 - Decide which optional expenses you want to reduce or eliminate
Task 2 - Identify any fixed expenses you can save more money on

Task 1:
This is actually extremely satisfying, especially once you've set your eye on an exciting goal. It's very easy to sacrifice the little things, in order to get that BIG thing you feel passionate & excited about.

It's all about taking control!

Here are some tips to help you get ruthless:

When choosing a budget spreadsheet, make sure you can annualize each expense. A good budget spreadsheet will automatically do that for you. It should project what each item adds up to for the full year.
This is a fantastic way to get a quick reality check! Looking at this 'annual expense' column of your budget spreadsheet alone will make a few things very clear to you. You might quickly decide you don't really need to spend $5,000 a year on lunches, coffees & miscellaneous cash items with nothing to show for it at the end of the year! You might be horrified at what some things add up to over a year. That will make the job pretty easy for you.
Go through all your optional & variable expenses. Set an annual budget for them and work your way backwards to how much to allow to allow for that expense each week, fortnight or month. It's much easier to look at the big numbers, make some choices & then translate it back to your normal budgeting period.
Have a little savings fund just for capital expense luxury items. Do it the old fashioned way & save up for the new TV etc so you know what you're actually spending
Remember this is all about choices - will you choose the small luxuries every day or the big fat reward at the end?
If you need some more help, there's another 'Budgets How-To' article you can refer to which explains how to identify each expense.

Task 2:
This is all about shopping around. We often get lazy & stick with what we have, rather than re-evaluate to see if it's still cheap, suitable or even necessary.

A few handy hints to get you started:

Be clever with the shopping: keep a shopping list, plan the week's meals, buy only what you actually need, use up what's in the pantry, cook up big & freeze meals, making meals from scratch, avoid take-away, buy toilet paper etc in bulk. You can greatly reduce your weekly grocery bill eliminating waste
Phone plans can often be consolidated with internet plans. If you're a heavy phone user, get unlimited or generous plans. It'll be more than worth it if you can avoid just one month of blowing out your phone plan! Who still needs a home phone? Do away with it, use your mobile phones. You can also use the mobile phone as a modem by making it a Wi-Fi hotspot.
If you have a gym membership but rarely go, consider cancelling it. Walk the dog or play with your kids instead.
Get rid of cable TV and get out a board game - you'll actually get to know your children!
If you've not reviewed your home loan in more than 2 years, see your mortgage adviser! You can probably save money just by switching to a cheaper product with the same lender for a relatively small fee.
Only buy clothes you actually need - do this when each season starts. Better still: make a list of everyone's needs & buy them at the sell-out of the previous season.
Sell your good-as-new kids clothes on eBay and while you're at it - buy their new ones there too!
Pay your gas & electricity bills in weekly installments. Shop around for the best plans first.
Only consolidate debts if you can get them on a cheaper interest rate so you can pay them off faster.
Give the kids pocket money so they also learn good budgeting skills. Make it enough so they can save up for an 'extras' they want. It also saves you being bled dry.
Review all your insurances. You often get great discounts by putting them with the one company.

There are some fantastic forums full of excellent savings ideas - find a good one & subscribe to it!

As you enter the new figures in your budget spreadsheet, check that annual column and watch the numbers plummet!

This is very satisfying work indeed. You should get very excited as you go through this process.

It's the start of a new financial era for you!

We'll talk about increasing your income in the next 'Budgets How-To' article. That's one of my all-time favorite topics, how about you?

Have a most prosperous day!
Miriam

Miriam Castilla's passion is teaching YOU how to be money smart.

As an award winning finance adviser, she knows that most people stress about money She also thinks it's completely unnecessary!
You see, nobody ever really teaches us how to manage our money. So most people just 'wing it', hoping they pay all their bills and accumulate some savings along the way. But there is a better way!

Download your Free Budget Spreadsheet here and discover how to run your household budget on auto pilot.
And be sure to visit the Budgets How To Blog for lots of juicy budgeting and saving tips & tricks!

Here's to YOUR Financial Success!

View the original article here

This post was made using the Auto Blogging Software from WebMagnates.org This line will not appear when posts are made after activating the software to full version.

I was fortunate enough to experience a great time out at a restaurant with a few friends after many years of being apart for family and work reasons. We were looking forward to meeting up and talking about what's new. During the years we still kept in contact so we knew what we were all up to, thanks to today's ever-expanding social networks. It was over a meal that we discussed how life in general was and going from one job to another. As we discussed about old times we were looking at the menu to see what we could order. It was then that we got talking about the high price rises in some basic dishes. In today's age, for the consumer this is to be expected unfortunately. A main meal, steak with salad and chips was close to $45, excluding drinks and after-meal refreshments.

The conversation turned to how tough life is and how we all try to "scrape by" so to speak. I was a little frustrated to hear this from one of my friends as I know that they do like to spend money on non-essentials in excess such as custom made golf clubs and quality named products. I have no objection to such items if one has the budget / finance to cater for these luxuries in life. So to hear my friend saying that he scrapes by was upsetting in a way. I realise that times are tough, but if you spend unwisely on non-essential items that can bring you debt then surely priorities are not right here. We have all done this in the past, but I'm sure we can all learn from our experiences. Which is why I would like to introduce a very common sense 4-step outline to change those bad 'unwise' habits.

1. The Budget

This is a must for everyone that needs to be in control of their finances. It doesn't have to be fancy, a simple Microsoft Excel spreadsheet can be put together to create one. If you do not have one, then you are in the red already, and may not know about it. Do you know where your money is going? Do you know how much you are spending? Have you broken up your spending in categories to see where your money is going? You may be surprised to see if you do. I encourage you to take the challenge and see for yourself where and how your finances are taking you. If you find that creating a budget is all too hard, there are some really useful applications out there that can help you every step of the way. Some with tutorials and free guides to assist. Consider personal finance software such YNAB and Quicken.

2. Save, Save & Save

If you save money, you will have more money! It is common sense and advice that works. It is easy to say, but at times hard to do. But if you are like my friend whose habit is to spend un-wisely then unfortunately saving money will be hard to grasp and money will simply slip through your fingers. Please don't use the excuse my friend uses, that is to say that in order to save money I need to have money. Although true to some extent, this is not the correct way to approach this subject of saving money. Saving money is really an attitude and not a number. If you believe that then you will see the number grow. By that I mean if you do not change thinking ability and attitude towards saving then you will never successfully save. After our discussion my friend has tried saving $50 a month and has been doing so for the past 8 months. He now has $400. That money she saved is growing every month and not 'slipping through his fingers' as he rightly told me.

3. Take Control of Your Spending

After understanding what savings is and putting on the right 'attitude hat' for savings, it is even more important to not go overboard and make your savings plan difficult. By that I mean spending should be controlled. Your savings should grow whilst your spending should be less. I guarantee you that if following this technique and strictly following your budget plan you will start to live from next month's pay check. For some, and sadly too many, living on each month's pay check is the only option. We do not condone this as this is not the point of the article. Everyone's situation financially is different and we just want to outline the important attitude one should have on how to save and achieve living off next month's budget.

If you are making ends meet, then constantly spending $45 on a premium steak (for example) when you could opt for chicken fillet is not wise. When you are simply getting by, spending over $40 on premium beer when you can opt for a lower and cheaper beer is also not wise. My friend is now suggesting that we think about purchasing two-ply toilet paper compared to three-ply. Well, I think you best be the judge to that as we are only trying to help people budget and not telling people what or not to purchase.

But you see the picture we are trying to paint. Understand your financial situation by identifying where your money is going. Not long ago my friend was interested in how they could save more. I suggested that we look at not only spending habits but identifying what essentials he needs. Phone bill for example. We cut the bill by half simply doing online research with other competing cell providers to get a better deal. Utilities, gas and electricity. Again, look at the market as many organisations are competing and will try to give the consumer the best possible deal for their money. In the end, we managed to save over $75 per month by switching providers. That's a $75 on top of the $50 he is already saving. Come the end of the year, this goes a long way.

4. Do Not Give Up

No doubt that you can now find ways where you can save money. If you are already, good on you! But do not stop there. You need to be in complete control of your finances. Constantly re-evaluate your situation. I personally sit down and every month re-assess where I need to fine-tune my spending and also re-adjust my budget. My budget is changing, but I stick to it. Like we analysed above, there are many ways to cut off from the budget, and add to other areas. As humans we do think that we need to spoil ourselves and give ourselves things that we really could use without. Sure, this is Ok once in a while, but don't fall for that trap, as debt is lurking round the corner if you fall into this bad habit. Have an emergency account where you can use in case of a car breakdown or insurance that needs to be paid. I budget $100 a month on my car insurance and when my yearly re-new comes I am prepared, thus not relying on my pay check for that month. Consider that when you are doing your budget. Perhaps your situation might be different. You may wish to save for your children's college fund or a savings account which pays high interest, or some other reason.

I keep emphasising common sense and having the right attitude towards saving. My friend has also looked at online investment accounts where high interest is paid by the bank for simply increasing your savings. Now not only is he saving $125 a month he is reaping the rewards of his interest credits and other areas of low spending. He doesn't rely anymore of his pay check alone, and is on the road to living off next month's budget.

If you are interested in reading more about how to save and managing personal finances, visit our website which has reviews of software as well as other informative finance articles to assist, http://www.yourbudgetangels.com/

View the original article here

This post was made using the Auto Blogging Software from WebMagnates.org This line will not appear when posts are made after activating the software to full version.

You have made the decision to create a personal budget and the next stage is finding the right software to suit your needs. Below are some guidelines to help you choose the right financial software, along with the possible pitfalls when using free software.

Why make a personal budget? Making a personal budget is simply about making a log of all your expenditures and all of your income so that personal future income can be allocated towards expenses, savings and the repayment of debts. Once all your bills are paid, your bottom line is the amount that is left over for you to enjoy or invest, or the reverse is how much enjoyment you have to cut out of your life before you are in serious trouble financially! Some people have a lot of debt, and the only way to get back on track and get a clear picture of their finances is to make a budget where past spending and debt are considered to create a personal budget.

What features do I need for my personal budgeting? When choosing personal budgeting software, decide what features you require. If you have not made a budget before, keep it simple as the more complicated the budget system is, the less likely you are to stick to it! You do not need to list each and every item purchased, but can put them all into one category, e.g. car, food, etc. When choosing budgeting software, look for a program that can do the following:

Manages cash flowKeeps bank accounts, credit cards and savings information in one placeCreates charts and reports showing your budget activities so you can visualise how you are spending your money and can track progressCreates schedules and alertsManages debtGives savings recommendations/sets up spending goalsHas bills calendar/bills trackerCreates budget/budget calculator showing areas to cut back on and generates a spending plan

Where can I buy personal budgeting software? There are numerous personal budgeting software programs available either as downloads or discs that are installed on your computer. Search online to find software that will suit your needs and read up on the many reviews that are available about each particular package. You might, for example, choose to buy a bookkeeping package which includes budgeting functions. If available, download a free trial version first before deciding on purchasing a particular program. Compare prices, designs and features and see if there are any offers or coupons available when buying online.

Is free web-based personal budgeting software safe? These free sites host all your data online. The pros of this are these sites are great if you cannot afford to buy a program, or if your computer fails, your data can be accessed from any computer by using your password. There could be drawbacks however, as there is the possibility of security issues as not everyone would want to keep their personal data on somebody else's server. If you are just getting started with creating a personal budget, do not get overwhelmed by the task ahead. Once you have made that step and got started, the results will be extremely rewarding when you see your spending clearly set out before you, which will help you to achieve your financial dreams!

Our Personal Budgeting Software Is A Revolutionary Software Program That Will Push You To Get Your Financial Act Together Once & For All And Help You Improve Your Cash Flow! Give It A Try Today: http://www.cashflowbudgetcalculator.com/

View the original article here

This post was made using the Auto Blogging Software from WebMagnates.org This line will not appear when posts are made after activating the software to full version.

Coming to a different country to work can be really tough!

In a new country one is literally a fish out of water. All the towns are different, the traffic may be flowing from the wrong side, people may be speaking with a funny accent and most importantly you may not know any of the banks or lending institutions!

If you are in Australia on a 457 visa, you are here to work and you've found a sponsor who needs your skills in your nominated occupation. All is good and you're on your way to start your new job in a new country. But what is the first thing that your employer requires? That would be a bank account so they can deposit your pay!

If you're like me, all the banks in Australia look like an alphabet soup! You just have no idea which bank can give you a debit account without charging monthly fees, which banks can give you a credit card right away and which bank has the best interest rates for your savings account!

I wish someone had given me some guidance before I opened up my first Australian bank account with the first bank I saw in the corner of the street from where I live! I'm not saying I'm not happy with the service, but I pay monthly service fees and get a very low interest on my savings! However, I'm happy that there are many ATMs so I never struggle to pull out cash when I need it.

There are four major banks in Australia. These are the Commonwealth Bank (CBA), National Australia Bank (NAB), ANZ and WestPac (WPC). There's also a fifth option for the internet savvy, which has no fees and highly competitive interest rates. I will talk about this option later.

The Commonwealth bank places great emphasis on excellent customer support and they have an extensive network of ATMs. When you set up a savings account, they will also give you a debit card and set up your internet banking account. However, if you use the branches for transactions you will be charged $6 per month if your bank balance is below $1000.00. Also, your transaction account only receives 0.01% interest p.a.

NAB transaction accounts are similar to Commonwealth but my personal opinion is that Commonwealth is much easier to reach and the branches are more streamlined to provide quick service.

WestPac is Australia's oldest bank and as such they have an excellent reputation. However, being the establishment does not mean that WestPac passes on the prestige to its customers. There's still a $5 monthly fee for transaction accounts.

ANZ bank has an excellent internet webpage that helps you navigate their products and get a credit card as soon as possible. ANZ transaction bank accounts also have a $5 monthly fee. However, ANZ term deposits have good interest rates starting at around 5% p.a. for a 90 day term deposit for $5000 and more.

The fifth option is a bank that has no ATMs or branches. They can afford to give you more interest with the money they save on cost of business associated with having branches and ATMs. U-Bank offers interest rates starting at around 6% for your savings. However, if you are transferring money from a U-bank savings account, you need to be aware that it can take up to four days.

What would I recommend? My personal recommendation is to initially set up a transaction account with any of the big four banks and then once you have some savings, to deposit it to U-Bank and let it collect interest.

I sure wish I had someone giving me this advice when I first arrived in Australia. However, with money, it's never too late to watch it grow. Just make sure you're placing it in a suitable account that will allow for the growth to take place.

If you're a big spender, locking away some of your cash will actually force you to have savings on the side and this is a good thing!

Ella Utku is a SEO writer / online content manager on a 457 visa in Sydney, Australia. Ella received useful help from visacorp in attaining her 457 business visa.

Visacorp has helped many people with their Australian work visas. They are experts in helping those coming to Australia, looking to contribute to the Australian economy.

View the original article here

This post was made using the Auto Blogging Software from WebMagnates.org This line will not appear when posts are made after activating the software to full version.

One way to become rich is to invest in getting a higher education. Having a higher education opens up new job opportunities for you and will also increase your likelihood of getting paid more. In a few years the money you spent on an education can be made at the job you choose.

Another option is researching which companies are expected to do well in the upcoming years and to buy stock in those companies. Technology based companies would be a good thing to invest in as the world is becoming more and more entirely based on computers. International companies making billions every year are another thing to invest in. Some newly started businesses may be a great investment, as you can buy stock for a low cost now and earn much more when those companies begin to boom. Watch the stock market and learn how to predict stocks and educate yourself well before investing!

If you're smart with money, and innovative with ideas, starting your own home business is yet another option. E-commerce is especially beneficial as you can widen your reach of influence from your business and gain more customers. Think of a product or service that is unique, can be inexpensive in relation to how much your customer will pay for it.

Becoming rich will take time and hard work. Some of the online businesses take a lot of work, but they do eventually pay off. You're going to have to put effort forth to have a good turnout, in other words you reap what you sow. Most of the programs online will give you guides on how to set up a business. All you have to do is pay for the knowledge, but if you think of it like paying for a class in college it can be the best investment for you. Many classes in an average college cost 300-500 dollars per class. And you have to invest years into an education. With most online businesses you can set it up and forget it and watch your profits roll in. With a little start-up money and proper planning, you can get rich over time.

You could also play the lottery. The chances are slim but if you play every day for a couple of years your odds can be better. And if you hit it'll make up for every dime you spent. If you buy the rolls of tickets you are bound to get a 10,000 or higher payout eventually and it has much better odds than picking numbers.

Imagine doubling your money every week with no or little risk! To discover a verified list of Million Dollar Corporations offering you their products at 75% commission to you. Click the link below to learn HOW you will begin compounding your capital towards your first Million Dollars at the easy corporate money program. Click http://www.makeamillionguide.com/ to learn how to make fast money!

View the original article here

This post was made using the Auto Blogging Software from WebMagnates.org This line will not appear when posts are made after activating the software to full version.

In these harsh economic times, cutting down on bills has probably become one of your top priorities. While the gas prices may be rising and thus straining your pockets, you can mitigate this by reducing your household bills. Make your home more energy efficient by reducing its energy consumption levels. A simple step such as upgrading your windows can reduce your costs by a sizeable margin. Consider the following tips to help you improve your home's energy efficiency.

Tip 1: Replace or Upgrade your Windows

Old and leaky windows significantly raise your air-conditioning and heating bills. To counter this, replace them with models that are more energy efficient. You can also shore up their efficiency with storm and weather-stripping windows. These newer models are Energy Star-rated, and can save between 7 to 24 percent of your bills. Single-glazed windows are the most energy-taxing and in need of replacement than other types.

Tip 2: Be Frugal

One way to keep your bills low is to learn to switch off lights or unwanted appliances. While lighting up the whole house creates a sense of security, it also pushes you to dig deeper to pay the rising bills. If you can do without them, why not switch the lights off? The resulting savings can be channeled towards replacing any inefficient devices in your home.

Tip 3: Install Compact Fluorescent Lights

If you use incandescent bulbs, replace them with CFLs. The energy needed to power a single bulb during its shelf life is more costly than the bulb itself. A certain type of CFL about three dollars more and uses 27 watts to produce the same amount of light as a 100-watt incandescent bulb. Its usual life is 10,000 hours, in which it consumes $22 of energy. On the other hand, a 100-watt bulb, though cheaper (at $5), lasts for 1000 hours, hence 10 bulbs are needed to last for 10,000 hours. In this period, the bulbs will consume energy amounting $80. In short, CFLs are much more energy-efficient and although they are initially more expensive you need to purchase less of them to equal the same lighting lifespan and you'll pay for about a third of the energy.

Tip 4: Improve the Efficiency of Water Heating System

Set your water heater's temperature to a warm setting of 120°F. Then enclose your hot water pipes with a proper insulation to avoid loss of temperature in between usage. Next, install low-flow fixtures in your baths and showers. Such measures reduce the amount of energy spent in pumping and reheating water in your home.

Tip 5: Insulate you Wall and Attic

During the winter, heat flows out of your house, while the reverse happens in summertime. With proper insulation, the rate of heat outflow during winter is minimized, while in summer, flow of heat into the house is slowed down. As such, your house will consume less energy to cool or heat the house. If there is no wall insulation in your house, install a blow-in insulation system. Lastly, you should ensure that your attic is properly insulated.

Tip 6: Conduct an Energy Audit

A vital, and possibly first step to improve your home's energy efficiency if you are truly committed to the cause, is to schedule an appointment with your local energy auditor. This expert has specialized skills and equipment such as infrared goggles, which he uses to calculate your home's energy efficiency. He also recommends any measures you should take to improve the existing efficiency levels and also offer you an independent opinion of your contractor's job quality. This way you can find out the most significant upgrades you can do for your house first and use the money you save because of that renovation to fund the other suggested renovations.

Randal Clark
Turnaround Consultant
Edmonton, Alberta, Canada
http://www.randalclark.com/

View the original article here

This post was made using the Auto Blogging Software from WebMagnates.org This line will not appear when posts are made after activating the software to full version.

Just because you don't make a lot of money, doesn't mean you can't save some. Technically, my income is below the poverty line in Canada, and by 'technically', I mean it is. If you're like me (no special skills, suck at math/ science and socially awkward) you have to go the extra mile to save and do what others are afraid, scared or mostly embarrassed to do. First, let's be clear, if you don't have a job and don't want to work at all then sorry, I can't help you. You must have at least some motivation to work, and if you don't, you could never accomplish the 5 steps anyway.

1. No Debt - If you're poor (like me), and you have debt, or worse, high interest credit card debt, it is virtually impossible to get ahead. Even if you save and are good enough to get a decent return in stocks, the 20% interest on credit card debt effectively cancels out any returns, and you are still in the hole. So pay off your debt, or never go into debt.

2. Set Achievable Goals - If you're poor, the savings process starts off very slow and can be frustrating when you're trying hard to save but have very little to show for it. You must start small; save $50-100 per pay check and build up from there. One of my favorite small goals is to not spend more than $5 a day on discretionary items including food. Some days I go way over but if you are trying hard, you will save extra.

3. Think Long Term - Investing is a marathon not a sprint. The money that you save should be put away until you are financially secure. Being a long term investor sounds easy, yet when you wake up one day and all your investments are down, and the culture of crisis is preached on the television, the easy thing to do is sell. Not to mention, the iPad you always wanted just went on sale. Will you cave and spend? (Wait, iPads never go on sale)

4. Think and Act Independently - I find this the hardest thing to do for most people. Generally, people are slaves to society and what other people deem as normal. In my late teens, early 20s, friends of mine would spend a lot of money partying/ drinking, going shopping or collecting DVDs. You must create your own path. If you want to get ahead financially, and you're poor (like me), you simply can't afford to do the above things frequently. Otherwise you'll just be like everyone else; even more poor and in debt.

5. Consolidate Your Expenses - If you're poor, and you just make enough to cover rent, you have to decrease your fixed expenses if you want to get ahead. The easiest way to do this is to find roommates to move in with, or downsize your living space. Maybe there's a nice basement apt in a neighbourhood that has some character (ghetto) that will cut your rent bill in half. If you took on too big a mortgage, admit your mistake and sell your house to downsize. As a renter, go the roommate route or find a significant other to split rent. Id recommend moving back with parents as a very last resort because it's not worth going into debt if your just getting by.

Maybe there should be a number 6, embrace thrift. We don't need 95% of what we buy. If you spend $20 a day on any number of things, that's $7300 a yr, a terrific amount to begin saving. The more thrifty I get, I realize how society shapes us to consume things we don't need. As a teenager, I use to feel sad after I bought an expensive pair of shoes because I knew I didn't need them and they wouldn't make me any happier. All that was left was a whole in my wallet and empty feelings. Remember that feeling, because you don't have to feel like that again if you take control and act independently. (see #4)

Any questions, email me personally. I'm John, my passion in life is teaching about saving, investing and stocks. Glad to answer questions or chat. john@riseofamillionaire.com

John Laframboise is founder and author at http://www.riseofamillionaire.com/, a personal finance Blog that follows his progress to become a millionaire. John has held positions within the Canadian banking industry and has a Bachelor of Commerce from the University of Windsor in Canada.

View the original article here

This post was made using the Auto Blogging Software from WebMagnates.org This line will not appear when posts are made after activating the software to full version.

Finance categories make it simple to manage your cashflow and to keep more of your money for investing and for using toward securing financial freedom. Many clients who I speak to have tried budgeting and have set up finance categories which were far too complicated to keep up with when life started to get busy. In this article, I'll be showing you four simple personal spending categories which you can use to achieve financial freedom starting right now.

The Four Simple Personal Finance Categories

Most likely you have seen the budget spreadsheets which are 60 feet long and which contain numerous personal spending categories. The problem with these is that they are far too numerous and complex to live on and even if you do succeed, they take all the fun out of your life. You can become more involved with the budgeting procedure and lose site of the intent of budgeting. When it comes to succeeding with your personal spending, you need to keep things simple. Here are the four personal finance categories which I found to be the most basic when it comes to managing personal cash flow:

1. Living expenses
2. Giving
3. Cash Reserves (for planned spending or for emergencies)
4. Investing

Every kind of spending that you do can be narrowed down to one of these four categories. By keeping track of your spending in these areas and planning your cash flow management according to them, you will have a much easier time getting control of your financial life. Let's look at a simple way for managing these categories...

The Order of the Four Personal Finance Categories is Key

Making the four personal finance categories work is all about allocating your disposable income according to what your highest priorities are. Here's an example:

1. Investing of 10%
2. Giving of 10%
3. Cash reserves of 10%

Once you've made these three a priority, the remaining 70% is usually more than enough to pay your expenses. Of course, this can be difficult to believe if you've been living paycheck to paycheck, but just try it for a month. Even if you think you cannot allocate the percentages above, choose a lesser amount, which you can allocate consistently until an increase can be made. If you manage your spending according to these four personal finance categories, you'll discover that you have more money than you thought and having more control of it will help you get more value out of it.

Before you spend any more money, download this FREE personal finance report.

View the original article here

This post was made using the Auto Blogging Software from WebMagnates.org This line will not appear when posts are made after activating the software to full version.

Creating a budget may not be the solution to all your financial woes but it is a start to redefining and setting straight your financial path. Basically, a budget is a financial plan; a simple way to record your income and expenses. It is a goal that you set for yourself to obtain and maintain a stable financial health by keeping track of how much comes in and how much goes out. Simply put, a budget is a combination of your income, expense, and goals. If you need financial security in life and want to save yourself from piling on debts, creating a budget is a necessity.

Though, it is fairly easy to build a budget, sticking to it will be a tad bit tougher. Initially, you may have problems abiding by your set budget but know that, your budget shouldn't necessarily be restrictive. You can accommodate few changes here and there but remember to not go all out. The main aim for creating a budget is to have control over your finances and if that is fulfilled then, tweaking a bit isn't a problem.

How to Budget Money

There are many ways to create a budget. You can use spreadsheet programs, accounting software or simply a pen and a paper, whichever you are comfortable with. A good budget plan incorporates all sources of income, expenses (all 3 types- fixed, variable and periodical), debt (if any) and savings. The most important thing to remember is to be realistic while creating a budget. Setting unrealistic goals will only fail you in the end. So, don't cut out, cut back. For instance, instead of going to movies every week, go twice a month. If you are eating out everyday, start cooking few days a week at home. Remember, these small changes will add up to a larger sum.

A Sample Budget Format

Categories
Budgeted (B)
Actual (A)
Difference
Income (I)

Total
Total
Total (B)- Total (A)
Expenses (E):

Fixed

Variable

Periodical

Total
Total
Total (B)- Total (A)

Record all your sources of income in the income row. Similarly, list your forecasted expenses- all 3 types: Fixed expenses (rent, electricity, water bills, loan repayment, pre-paid costs), Variable expenses (shopping, restaurants, utilities), Periodical expenses (tax, insurance). At the end of the month, input your actual income and expenses. If there is a difference between the actual sum and the budgeted sum, you need to find out where you went wrong. Work on those areas and see if you can stick to your budget next time around. Hence, it is important to review your budget time and again; make changes where necessary.

Penny Likes to write about how to budget money on her site pennyseeds.com!

View the original article here

This post was made using the Auto Blogging Software from WebMagnates.org This line will not appear when posts are made after activating the software to full version.

These days we all have to keep a tight rein on our household expenses. One of the best ways to keep control of your finances is to use a budget calculator. This will help you see where your money is going and where you may be able to make savings.

Budget Calculator - Getting Started: It is probably a good idea to collect your last twelve months bank statements to make sure you don't forget to include all your quarterly and annual bills. Collect the records of all your income, including investment income and interest on savings. Your expenses fall into several categories - some are unavoidable, some are discretionary and some are unexpected. Your unavoidable expenses include things like mortgage or rent, electric and gas and of course food. Discretionary expenses are things like eating out or a day at the spa. Unexpected expenses include things such as repair of an essential household appliance or a new boiler.

Which Budget Calculator? When you have got your paperwork to hand it is time to find a budget calculator. There are loads of budget calculators on the internet - have a look at a few and see if there is one suitable for your needs. If you can't find one that looks right for you, you could set up a personalised one on a spreadsheet. Go through your bank statements and make a list of all your monthly, quarterly and annual bills. Then add one third of the quarterly and one twelfth of the annual bills to your monthly column. Next list all your monthly income in the same way. Transfer the information to your chosen budget calculator and see where your money is going.

Go through your discretionary expenses and see if there is anything you could do without - eating out once a month instead of once a week, walking to work rather than using the car every day or taking a packed lunch instead of going to the café. If your budget calculator shows that you do not appear to be able to live within your budget, don't despair - there are steps you can take.

Adjust your Budget: Firstly your mortgage - you have several options here. You could increase the term of your mortgage, making your monthly payments lower. You could take a further advance and use the money to pay off your much more expensive credit cards - it is important to get rid of your most expensive debts first. Next check that you are with the cheapest suppliers for gas, electric, telephone and internet - it's not much trouble to switch and you could save a lot of money.

Food shopping - always make a list, it's too easy to pick up things you don't really need. Consider buying different brands if they are cheaper, instead of just picking up the one you always get. You will find that fruit and vegetables are generally cheaper from a market or a greengrocer - and you have the added advantage of only buying what you want (instead of a pack of three lettuces for instance). Hope this has helped with your budget calculations.

Our Budget Calculator Is A Revolutionary Software Program That Will Push You To Get Your Financial Act Together Once & For All And Help You Improve Your Cash Flow! Give It A Try Today: http://www.cashflowbudgetcalculator.com/

View the original article here

This post was made using the Auto Blogging Software from WebMagnates.org This line will not appear when posts are made after activating the software to full version.

Budgeting is the most important key in any kind of plan for finances. It does not really matter if you are a monthly paid employee or if you receive a pay check that most people can only imagine. You need to have good knowledge on how to handle your money. It is not just about knowing what to buy and what not to buy but it is also knowing the power of the money that you have and then making a plan on how you are going to allocate your funds.

Budgeting is highly needed because you need to have knowledge on how your money is working for you. Track your expenses and uncover cash flow problems so that you will not have to have bigger problems in the future. Budgeting is important for you to be able to reach your ultimate financial goals.

Devise a budget process that works for you. You can create a list, a spreadsheet or a chart that will help you have a representation of your money and all the things that are associated with it. It is important that you stay true to this budget and you follow it to the letter. You need to have a sense of discipline and control so that you will be able to let your budgeting work for you and not against you.

You can search the internet for readymade spreadsheets that you can utilize for your budgeting. You should be able to extract all the categories that you need for your budget and then organize everything so that with one look, you can easily spot the red flags and be able to deduce what action you need to do in order to save you and your finances when necessary.

It is important that you do not overspend. This is the main problem of people who cannot keep their finances in order. Make sure that you are meticulous about your budget plans so that you will be able to keep your finances in check at all times. Do not try to go beyond your means so that you will not encounter problems that may be a little bit harder to solve in the future. If possible, use cash at all times and avoid using credit. While using a credit card may be convenient, you may not be able to handle all the additional costs when you go over your limit or fail to pay your dues.

This article was written by Mike, who is currently working for What PayDay Loans who speicalise in the short-term loan industry, helping you to get cash quickly and easily.

View the original article here

This post was made using the Auto Blogging Software from WebMagnates.org This line will not appear when posts are made after activating the software to full version.

This first "event" is a hypothetical budget of a young couple. It may help stir your own thoughts about future costs and ways to "cut back" when, for instance, a 1st child arrives. Study the inputs to see a "typical" budget life. It's interesting that a human life can be summed up in the 15 questions listed below. Detailed questions were answered and estimates of typical household costs were used to calculate savings growth over the next 4 years.

Budgeting Event No. 1

A young 20-something about 3 years out of college, with a working wife but no kids. Here is their possible scenario over the next 4 years (assuming the stork doesn't visit them soon). These are the inputs selected for this young couple:

1. YOUR TRADITIONAL MONTHLY PENSION CHECK = 0
2. 401K(S) PRESENT BALANCES = 20000
3. MONTHLY INSURANCE PAYMENTS = 100
4. TOTAL "NET MONTHLY" SPOUSE INCOME + YOUR WORK INCOME + ANNUITY + MUTUAL FUND INCOME + OTHERS JOB MONTHLY NET INCOME? - Average next 4 years = 4000
5. "MONTHLY" HOUSE RELATED PAYMENTS (MORTGAGE/RENT/TAXES) = 1000
6. MONTHLY MEDICARE PART B? = 0
7. MONTHLY FOOD & PROPERTY MAINTENANCE = 500
8. MONTHLY UTILITIES = 225
9. MONTHLY CLOTHES = 200
10. MONTHLY ENTERTAINMENT & AUTO FUEL = 550
11. Monthly EMERGENCY FUND = 200
12. IRA VALUES = 5000
13. SAVINGS & CHECKING = 2000
14. BROKERAGE & OPTIONS ACCOUNT VALUE = 5000
15. "OTHER" YEARLY EXPENSE - AVERAGE NEXT 4 OR 5 YEARS (VACATION COST, ETC.?) = 2000

And the following shows the debt balance for each of the next 4 years, unless the above numbers change. The calculation these numbers came from assumes $75,000 in liquid savings as a proper "cushion" before saying you are at "break even" (in the black):

PRESENT "EXTRA SAVINGS" ACCOUNT BALANCE PROJECTION above a recommended $75,000 "cushion" - NEXT 4 YEARS = -$55,258, -$42,516, -$29,774, -$17,032.

Notice the debt decreasing by around $12,000 per year. When these numbers turn "BLACK" around the 6th year (assuming nothing changes), it just means this young couple has a $75,000 liquid "cushion" that will help with a house down payment or to start a family.

Calculations are done in an EXCEL spreadsheet that allows any person, of any age, to understand their household situation every 4 years or so, when they re-run their own numbers based on their existing household situation at that time. It can truly help in "budgeting your life". This is a very valuable exercise that allows anyone to see how lifestyle incomes and costs affect future savings. The aim is to make intelligent adjustments, as needed, to reach a near term goal. Life is simpler when broken up into a series of shorter goals.

If you want to run your numbers, email me at rostrowski85@gmail.com. I'll send you the spreadsheet.

View the original article here

This post was made using the Auto Blogging Software from WebMagnates.org This line will not appear when posts are made after activating the software to full version.

Once you have decided you are ready to find your way to financial freedom, it tends to be an uphill battle from there. The first few months of cutbacks and saving for you emergency fund can be difficult for someone who is used to spending money instead of holding on to it.

In the beginning I had two goals: cut back my monthly expenditures to the bone and build up an emergency fund. It actually sounds just as hard as it was to implement these changes. Here are some of the ways that I personally cut back spending during the month:

Assess your monthly gas usage. Of course, we all think about gas prices, but I had never really looked into how much gas I was using frivolously during the month. I would take extra trips during the week on my lunch break or after I had already come home from work. Most of the extra usage occurred on the weekends, where I would find myself driving to 2-3 places every day that were not close. I decided to cut weekday trips out totally only driving back and forth to work and limit myself to only one outing on the weekends each day. I was paying $60.00 per week, and after my change, I am down to $40.00 per week. That is a savings of $1,040.00 approximately per year. That's huge!
Lowered my Netflix subscription. At the height of my Netflix addiction, I was at unlimited streaming and 3 movies at a time. Now that I am reading more, working more, and live at home, I decided to cut that down to unlimited streaming and 1 at a time. From 26.00 per month to 16.00 per month that saves $120.00 a year.
Eating out. This is perhaps the most flexible area to lower expenses. Of course, you can totally cut out going to restaurants to eat. It is pretty difficult for me to have the motivation every single day of the month to cook. Instead, I choose to eat out a maximum of 2 times per week, maybe even less. All I did was make the effort. At the end of the month, February, I had eaten out a total of $254.55. Knowing this, going into March was like a challenge to see if I could do better. End of March came and I had only eaten out $114.83. That was a savings of $139.72.
Buy Generics. This may seem like a no brainer, but even I was hard pressed to buy generics, even in my financial strain. Be that as it may, almost all food and toiletries have a generic brand for usually 2/3 or half the price. These generics are sold next to the brand because they have the same main ingredients. The only thing that is different is some of the inactive ingredients.

Here are some other great ways to cut spending:

Eat dinner leftovers for lunch at work the next day.
Cut out cable.
Cut down internet. When I paid for cable, ATT had a DSL internet package that was only $20 bucks a month. It was the slowest supposed speed and the lowest plan. I could still watch Netflix and surf the internet at a pretty decent speed. You could always cut out internet totally and use the internet at the library free of charge. Of course, that is pretty extreme for most of us.
Cut your own hair. As a woman, I cannot personally say that I will ever be able to do this. Since I already have very long hair, I choose to just not cut my hair at all. It may be easiest for guys to shave their own heads as an alternative to weekly cuts.
Use the dryer and washer less. You don't have to wash everything that has only been used one time. Use your best judgment. Hanging clothes on a clothes line rather than drying can save kilowatts on your money electric bill.
Keep a price book. Mark down all the prices on the things that you regularly buy and see from there what items you can cut back on, buy generic, or buy during sale cycles. I take pictures with my camera phone to make sure I don't forget price and package size.
Shop at thrift stores. Always look for used first. I regret now that I never shopped for used clothes and toys for my child. So many brand new items were wasted and given away anyways for lack of use or outgrowing. Children's clothing is along the lines of a disposable item, because they grow out of clothes quickly.
Invest in a smaller home. I am currently house hunting and only need 2 bedrooms. It's hard to convince myself that going with a house that meets only my needs is the best idea. I don't really need a few more rooms; I just want a few more rooms. For me, a small starter home is good investment for a low mortgage and rental opportunities in the future.
Make the move to a more minimalist lifestyle. The less money you spend on things, the more you have to save and invest. Invest in only your needs and not always all your wants.
Stay home. Become a homebody and spend time with family and friends. It will save you on gas, eating out, and mindless shopping.

The best thing to do before trying any of these tips is to remember this is not a permanent change. Feeling like you will have to go the rest of your life without, let's say, cable can be quite a deterrent for anyone who is starting out. Try a few of these suggestions at a time or maybe just one a month. All of these changes at once can be very overwhelming.

The good news is that doing all of these things to cut down on the monthly expenses can save a lot of money and get you on a track to a more frugal lifestyle, which can only lead to financial freedom and peace of mind. Since I have implemented most of these changes, I feel better about the savings I have experienced and I find that I truly enjoy being more frugal in life. It puts more money in my pockets!

View the original article here

This post was made using the Auto Blogging Software from WebMagnates.org This line will not appear when posts are made after activating the software to full version.

Budgeting and Cash Flow.....two simple phrases that you would expect to learn the meaning of in grade school. If not, certainly by High School. Well guess what...NEITHER!!! I suspect this is the main reason why so many young people get into financial trouble at such an early age. They have no idea how the whole process works. Did you hear the joke about the newlyweds arguing...one says "Why do we always run out of money before we run out of month", the other one snaps back "We can't be out of money, we have plenty of checks left!" The truth of the matter is that without proper budget planning, your financial freedom will be at risk!

When starting out to prepare a budget you must keep one underlying principle at the front of your mind. That is Honesty is the best policy. When you first start out, you have to do some estimating. Here is where you have to be truthful to yourself. For instance, if you are trying to figure out how much you spend on food each day, don't forget the daily stop to Java Palace on the way to work, or the afternoon snack at the office canteen etc. etc. A well thought out Budget will keep you on track to meeting any and all the goals that you set for yourself. Additionally, just writing down everything on paper that you are going to need when budget planning will help you uncover all the black holes that mysteriously consume your paycheck, month after month. Once you have your Budget in place, honesty has to kick in again. You have to honestly try to stick to your Budget or else you will fail. It does not happen automatically. There will be certain parts of Budget Planning that you can put on auto pilot. Doing so will help you in your quest to achieve financial freedom.

So where and how does one begin to make a Budget. Since I did not learn it in school either, it was a rather fortuitous encounter that started me on the road to never bouncing a check or never getting a collection phone call. Many years ago, while applying for a new auto loan, the bank had some loan documents prepared for me to fill out. One of them was a Personal Financial Statement (PFS). I filled it out then and I have been filling one out every year since. I think it is the greatest tool to learn how to budget. If you have never seen one, go to your local bank branch and ask for a PFS. If they ask why, just say you are preparing to apply for a mortgage. Anyway, I haven't gotten one from the bank in a long time as it is very easy to make your own PFS. In a nutshell, here is what you do. Get a blank piece of paper and draw a line down the middle. At the top of the left side, title it INCOME, and at the top of the right side, title it EXPENSES. Now here is where the fun starts. Back to the left side...write down all your sources of monthly income on an after tax basis. This is important because you cannot pay bills with before tax income, meaning your gross paycheck number is of no value for this exercise. Also keep in mind that if you get paid weekly, take the after tax number and multiply by 52 and divide by 12 to get your true monthly after tax number which is higher than just multiplying your weekly number by four thanks to that extra week that will sneak in once every quarter. When finished, add up the left side to get your total monthly income from which you can work your magic. Now move over to the right side. Start by listing all your monthly expenses that are fixed, meaning they are the same every single month as in your home mortgage and your car payment and your utility bill if you have balanced billing, which by the way if you do not have balanced billing, you should consider it as it will help you stay on track. When you are finished listing all your fixed monthly expenses, start listing all your variable monthly expenses. Here is where some estimation may occur. Do your best to guess and do not leave anything out. Don't forget birthday gifts, entertainment, bowling night, newspapers and the daily Java stop if it fits. Last, put in a miscellaneous category, because you know you are going to need it. Add up the right side. Is the number greater than or less than the left side? If it is less than the left side, you are in fine shape for performing budget planning. If it is less than the left side, you have some work cut out for yourself if you want to succeed with financial freedom.

If the answer above was positive or in other words, you are spending less than you are bringing home, then Congratulations are in order. You are in good company and on the path to financial freedom. You probably have some good habits drilled into you from your upbringing or some other source of financial know how. Let me ask you one question. When you listed all your expenses on the right side, did you make an entry for your self? Did you include an entry called savings? Are you putting any monthly income into a 401(k), I.R.A. or funding any type of retirement planning? I suspect you are addressing this most vital aspect of your finances. One other question. You did include credit card debt right? Is this number growing, declining, or remaining the same? Again, if you are in this camp, I suspect all is well on this front.

If the answer above was negative, well then you just might be related to the couple we spoke about in the beginning that runs out of money every month before running out of month! What to do? In a word...DISCIPLINE! It takes discipline to put your finances in order. One of the reasons that your number is negative is because you were honest enough to write down ALL your expenses and that is a good thing. However, your day of reckoning has arrived. Now you have to start doing some inner reflection. You must ask yourself "Of all those things on the expense side...Do I really need all that stuff?" Is 5 monthly magazine subscriptions really necessary? Is it so important to go out to eat once a week? How about once a month instead! If you made that one change alone, not only would your budget planning look better, but when you actually did go out, it would take on much more significance. Believe it or not, it will bring you more pleasure than the "weekly grind" of going out to eat. If you don't like the word discipline, than I will throw out another word at you...TWEAKING. Time to start tweaking the right side of the sheet. Take a long hard look at every single entry, line by line to determine where you are going to tweak. This is the only way to make the right side fall in line with your resources. Sure you can increase the left side, but that is easier said than done.

Now that you have a general idea of how to start building a budget, we need to turn our attention to fine tuning the right side of the equation because in the early going, that is where you have the most control. For the time being, the left side is out of your control. Sure you can work more hours or get a second job or start a side business all of which will raise the income side of the equation, but as we just mentioned, that is easier said than done. Get this part of budget planning right and your financial freedom will become a reality before not too much time passes by!

Chris Borg is a practicing pharmacist and financial adviser who writes about health care and investing. Chris's latest website on financial freedom is at RatraceBgone, where Chris provides financial tips such as the 9 steps to financial freedom: 9 Steps To Financial Freedom

View the original article here

This post was made using the Auto Blogging Software from WebMagnates.org This line will not appear when posts are made after activating the software to full version.

When there are so many different money management software packages available, it can be difficult to decide which program is best for you and your needs. There are several websites offering comparisons and reviews on the best finance software, which is a great place to start.

Before buying money management software or personal finance software, you need to ask yourself what you would like your software to do for you. Not all programs will have the same features and some have extra features that you will never use. Before purchasing your money management software, check the following meet your criteria:

Is it easy to use? Purchase software that suits your computer skills and your knowledge of financial accounting, as some programs can be extremely complex.
What will the software allow me to manage? Ideally the best package will be one that allows you to manage your online banking, checking accounts, savings, loans, bills paid, credit cards and mortgages with regular updates on transactions and account balances. The software should be able to import all this information but if you are not happy with it downloading transactions automatically, check you can import transactions manually once you have downloaded them yourself onto your computer.
Will the software remind me to pay bills? Most software will schedule reminders to pay bills, transfer money, etc.
What sort of reports will it produce? Line graphs and pie charts which clearly show where your money is being spent will help you get a clearer picture of your finances.
Will the software help me to budget? Check to see if the package has a budgeting tool to help you create a personal budget.
Does it have personal investment options? If you need to manage bonds, stocks, funds, etc. choose software that will help you with this in order to track and analyse your investments. This will also assist you with home purchases, planning for retirement and other future financial goals.
Does the software incorporate tax options? If you need help with preparing your tax returns, purchase a programme that will carry out simple returns and estimate your tax.
Will the software determine my net worth? Check your software will allow you to do this if required so that you can accurately see your net worth at any time.
What help and support will I get? Check that the money management software has a support system via email, customer forum and an online user manual.
Is it secure? Lastly, and very importantly, check out the security features of the software. You will be entering extremely confidential information such as bank information and personal details.

Money management software will enable you to manage your finances easily and make your money work for you. Being able to have a clearer picture of your finances will help you keep track of your hard earned money and allow you to budget and keep focused on keeping your finances safe, secure and protected.

Our Budget Calculator Is A Revolutionary Software Program That Will Push You To Get Your Financial Act Together Once & For All And Help You Improve Your Cash Flow! Give It A Try Today: http://www.cashflowbudgetcalculator.com/

View the original article here

This post was made using the Auto Blogging Software from WebMagnates.org This line will not appear when posts are made after activating the software to full version.

Despite the constant burden being placed on drivers with added tax, increased petrol prices and higher insurance premiums, there are benefits to be gained by installing a GPS tracking system to your car. Drivers will find that on the road they will no longer find themselves in endless streams of traffic with their engines expensively ticking over.

Cheaper car costs
The use of a GPS tracker means that travelling to and from work, or whilst on the road as part of your job, you can save money on petrol by taking the most effective route. By taking the most economic journey drivers are able to save time, petrol and ultimately money on their essential trips and GPS tracking devices are one of the most efficient ways of managing fuel consumption.

Figures show that the average car can reduce its running costs by as much as 20% when fitted with a GPS tracker, a saving which will more than pay for its installation within 6 months.

GPS savings
These savings are all important as the cost of running a car continues to rise and by monitoring such things as speed and idling times you not only save money on petrol but also cause less damage and wear and tear on the vehicles engine, brakes and tyres. The system can also be used to advise you when your car is due for a service or if there is any essential maintenance that ideally should be done.

Certain areas such as road tax and insurance costs can affect your choice of car, by selecting lower banded vehicles, smaller engines and diesel cars you can also start making savings at the point of purchase.

GPS insurance
Insurance is another area where GPS tracking is enabling drivers to make savings with several insurers offering policies that utilise GPS technology to monitor vehicle usage and adjust insurance costs accordingly. The premiums are made up from actual usage based on the mileage, driving conditions and driving habits of the insured rather than retrospectively calculating the cost on perceived driving.

This involves the insurance company fitting a GPS tracker into your car from where they are able to download and record your vehicles use. This gives them a real time view of exactly how you use your car and how carefully you drive, low mileage drivers are able to reap the rewards of cheaper car insurance. A number of leading car insurers are offering these policies and drivers who consider themselves good, considerate drivers are benefiting from the offers.

Alex has used GPS tracking services on numerous occasions and he has become a great fan. At university he first started looking at how GPS tracking equipment can change our every-day lives.

View the original article here

This post was made using the Auto Blogging Software from WebMagnates.org This line will not appear when posts are made after activating the software to full version.

One of the most important qualities of successful business people is they know the true value of money. Unlike others who prefer luxury, these highly successful business people focus on managing their wealth and learning endless ways on how to make it grow.

I have known a lot of people who used to be very rich and in just a snap, everything seemed to fail for them. From riches to rags, there they are; working hard like never before but not earning enough like they used to. The sad part is, some of them don't know how to adapt. They end up doing desperate measures like selling drugs or some of them just lose their minds and start their journey to total insanity. God knows what is going to happen next.

Many people new to business world often make a major mistake. They tend to focus on entering business world to earn lots of money. When they finally have their business going, their eyes are there, gazing fiercely at the result; which is the cash! Green is indeed hypnotizing, isn't it? However, what they fail to focus on is the business itself.

As a person who made his first million during his teenage years and author of You Call the Shots: Succeed Your Way, Cameron Johnson once said, "...money is not an end in itself; it's just a tool!" This simply means, money should be considered as an instrument to achieve your goal to succeed in life. Furthermore, people should know how to control it. Golden rule still applies here - 'Do unto others what you want others to do unto you'. Now let's change 'others' for 'money'. Do unto money what you want money to do unto you! If you make your money a slave through spending it to dead investments, which is luxury, in return, money will enslave you! Makes sense?

Money is like bacteria. A bacterium preserves its life through a host. The host is the person, the host is you! The longer it stays in the host, the faster it can multiply. When you take it out from the host, it dies. Same as money, when you keep it, invest wisely and manage it correctly, it multiplies. If you take it out from your pocket and spend it to get your WANTS not NEEDS, it dies.

If you want success in life, manage your own business by controlling your money. Be your money's boss! Don't let money become your boss. It will take you nowhere when you allow that. Use your money to grow your own business and in return, when your business grows, your money grows. That is the simple logic!

I have some recommendations for you to learn more about making your money work for you. Firstly, read books about entrepreneurship. I know a lot of people are already knowledgeable about this, especially those that have business degrees, however, you can still learn a lot from books. Every author, though some of their ideas resemble, they still have something unique to share as every person has different perspective from one another. So why not learn from them? These ideas could have never been taught in school as these can be from the results of different approaches to achieving success in the business world.

Secondly, if you already own a business, investing the profit is a very good idea. Rather than spending it for luxury, why not use your profit to make your current business bigger. Better yet, learn and try another business with little investment. If you want to try something different like what I am doing now, why not use the internet. Internet Affiliate Marketing is one good business to consider. Internet is very powerful and a lot of people still have no idea how internet can generate tons of money. So do not get left behind.The internet has a lot to offer. It can teach you how to earn money online. Learn, discover and succeed!

Hi! I am Mr. Villacorta and I am new to online business world but I have been learning a lot through the help of an online community that teaches how to achieve success in an honest, ethical and legitimate way. A lot of opportunities are now open for me and I'm gonna grab everything. If you want to grab one and join this community, follow this link Internet Income Opportunity.

View the original article here

This post was made using the Auto Blogging Software from WebMagnates.org This line will not appear when posts are made after activating the software to full version.

Getting The Most Bang Out Of Your Party Planning Buck

Throwing a party can be such a fun adventure. You envision a room filled with happy, smiling guests all complimenting you on the food and the drinks. The only thing standing between you and making that fantasy a reality is your budget.

You may be having champagne dreams while your bank account can only shoulder soft drink essentials. There are ways to incorporate any budget into your event planning and still come out with a party to be proud of.

Most people don't indulge in alcoholic beverages in the early afternoon, so you could instead serve a punch or coffee or iced tea. This is very refreshing and along with some small snacks and perhaps a tray of assorted sweet tooth delights, you've offered your guests refreshment without the added cost that an event later in the day requires.

Another consideration when event planning is whether or not you need the services of a caterer. Caterers can be invaluable, especially when you are hosting an event of a significant size. If however, your guest list isn't as vast, doing much of the menu planning and cooking yourself can save more than a few pennies.

Perhaps the best money saving technique when it comes to the area of food is to host a potluck event. This idea can be included as part of your event planning process. You plan the party or gathering based on the idea that every guest will supply an item of food or drink. Some many bring a main course or a salad while others will bring a bottle of wine. Once everyone has arrived there is an enormous amount of different food to sample. This is a great way to include the guests in the party planning process and they feel good knowing they've contributed.

Food isn't the only area that you can scrimp and save in. If you are hosting a children's birthday party you can ask a friend or relative to dress up as a clown instead of hiring a clown. There are many adults who love to interact with children and the only payment they'd expect would be a room full of young smiles and a slice of birthday cake. Decorations also don't have to break your budget. If you're hosting a garden party, you can create beautiful, soft lighting by hanging the white lights that normally adorn your holiday tree around your garden. Your guests won't be the wiser, but you will for having opted not to invest in a new set of lights you probably will never use again.

Careful thought while you are event planning can save you money and let you enjoy your party without fretting about finances.

View the original article here

This post was made using the Auto Blogging Software from WebMagnates.org This line will not appear when posts are made after activating the software to full version.