Budgeting Finance

One cannot be more clear on its theme, "How can I spend if I don't have the money?" No hidden costs, no credit card fees, just simple payment with cold hard cash (although cheque payments can also be made).

Here Comes The Cash

The practical concept is really quite straight forward. From the time you get paid, put into each envelope the nominated cash amount that you wrote down on the back of the envelope. The envelope represents the category you chose to spend money on. Now as time goes on, record how much you spent from the category, by taking out the cash and replacing it with store receipts. Another method is to record the spending in a log, and insert that log into the category envelope. It won't take long for you to see where your money is going and how much you have spent. But be careful for your category not to run out of money too soon!

If that happens, well there are two choices you may wish to consider: Take the bullet and don't spend any more for that category, OR take it out of another envelop (category). The choice is yours. Either way, you will not end up in negative amount. It is very important to consider the consequences of taking out from another category before topping up the other. Spending behaviour and money management should tell you what sort of spender or saver you are. Hopefully this envelop method will provide self-discipline.

Balance and Adjustments

No doubt that over time you will be making adjustments to many categories and feeling a sense of reality of where the money is being spent. That is why a good budget is necessary because not only will it teach you to manage and grow your finances but it also give you a lesson or sometimes a touch lesson in reality of where and how your money is being spent. If after months of applying this method you are still shifting and moving money from one envelope to another then you have not applied this method correctly and the budget method has been ignored. Why do you budget? To spend less than what you earn and potentially save and stop living from pay cheque to pay cheque. Do you remember that word we used earlier in this article? Self-discipline!

If applied correctly, this method can set you free from financial debt, anxiety, frustration and perhaps your dearly loved child that goes on and on about wanting that $350 electric car to ride on (trust me I've done it myself)! He may be tempted to say just take the cash out of another envelope, but your self-discipline will enable you to share your reasoning by replying "do you wish to eat less, risk not having electricity or a house to live in?".

Much to our discussion about reducing debt, have a read of the short article explaining how to reduce credit card debt. Feel free also to post your comments or email us and share your experience on how the envelop budgeting system has worked for you.

Visit us at http://www.yourbudgetangels.com/ for more information and our latest articles and stories for budgeting and software reviews.

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Cash Management is a broad-based expression that covers a number of activities that aid individuals and businesses to process receipts and payments in a methodical and proficient way.

Managing your cash flow is vital for company's survival and growth. The aim is to administer the cash balances of a company in a manner that optimizes the accessibility of money without running the risk of insolvency.

Aspects that should be scrutinized in a money management system should include the administration of cash balances, the business's level of liquidity and its investment tactics.

In many ways the administration of cash flow is a vital part of a business manager's job. Should a company be deficient in cash at the time an obligation falls due, the company becomes insolvent and there is a very real risk of bankruptcy. Such a threat should serve to motivate businesses to administer their money carefully.

Cash management carried out effectively can not only prevent bankruptcy, but can increase profitability. It is to be expected that companies incur expenses in the production of goods or the provision of services prior to payment being received from the clients who eventually receive those goods or services. At the same time employees' wages and other outgoings will deplete significant funds. Such issues make efficient money management essential for the success of any company.

In times of economic recession, falling sales together with inadequate cash management can spell the end for a business. In such circumstances proprietors must take the time to carry out a thorough cash management analysis in order to tackle reduced spending, shortfalls and attempt to enhance income plus putting in place an improved cash management program.

Businesses can also encounter cash flow problems during times of economic growth, but there are actions that can be taken to reduce the influence of these difficulties and to ensure the company remains a viable proposition. Such actions could include:

Generate a practical cash flow budget which sets out funding in the short term (say 30 - 60 days) and the long term (say 1 - 2 years).Take steps to ensure outstanding payments are received and speed up the collection of receivable accounts. Make sure your invoices have a due date on them. Contemplate offering a slight discount for punctual payment. Of major importance to make certain of good cash flow from clients is creating robust collection and invoicing systems.Carefully scrutinize all outgoings and rank them in order of importance. Hold accounts payable until the last day possible without incurring a penalty.Retain inventory items at the lowest possible practical level.Consider other sections where it may be possible to reduce operational costs, such as payroll, goods or services that return low profit margins.

Cash management is essential for any business; it gives you instant access to your financial records, saves time and money by eliminating the necessity to sift through receipts and paperwork. It puts you in control and will increase your profit margins!

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/

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What's your purpose? What's your goal? What's your next step?

Josh is a 16 year old contractor I hired to help me produce a video for a new product. My purpose for hiring Josh was not simply because he's got a ton of skill and experience in video production. Josh is just getting started so it makes sense to me that I can hire him cheap ($10 an hour which is ridiculously cheap!). My purpose is not to be cheap. If you knew Josh (and his purpose), you would know what makes him really special. And, you might be able to guess my purpose for hiring Josh. I've never told Josh my purpose for hiring him and he probably has no clue. There's really no need for him to know my purpose. Its my purpose and its my business.

When it comes to your money - and your life - it's kind of the same. And, it may be very different. We'll get back to that in a minute. But first, let's answer the second question:

What's Your Goal?

In order for Josh to make a great video to help me sell my product, he may not have a clue about my purpose for making the product or the video - but he better know my goal for the video I hire him to produce. What message do I want to communicate in the video? If I don't really have a clear goal when I hire Josh to produce the video, what message do you think might be communicated in the video? And, will that message be clear? And, will I have more or less chance of meeting my real purpose - assuming that I do have a clear purpose and I do have a specific goal... And, if I do have a specific and clear goal for the video, and I communicate my goal with crystal clarity to Josh, will he be more likely to great video to help me sell my product?

Your Life and Your Money

Over the years, many people have hired me to help them manage their finances. The work of a Certified Financial Planner is kind of like helping people produce a video of their financial life. My goal as a CFP was to help people manage the risk of everyday life, recover from the unexpected, and realize their dreams. To do that, I had to know their financial goals! The conversation about purpose is one that some people appreciated, some people felt like I didn't need to know their purpose for money - they thought the question was too personal for financial planning. I get that. For some of us, knowing each other's purpose more clearly means knowing each other more honestly. Trust is what matters most in any relationship and it takes lots of trust to share your goals, your hopes, and your dreams. It takes even more trust to share your purpose.

A New Way to Think About Life and Money

In ever session of every financial workshop, I remind participants of a few basic assumptions that are built into the workshop. One of those assumptions is that we are all prisoners of how we think about life and money. Some of us live in random response to whatever happens. Others see external circumstances, challenges, and opportunities as what defines our plan and our choices. Most Americans, and I'm one of them, have some experience living in outright denial and avoidance when it comes to difficult challenges and opportunities. Each of us can choose to think and live with more purpose and more intentionality. It starts with an idea. A new way to think about life and money. Knowing your purpose gives you the answer to the question why. Once you know why it's important, you'll be that much closer to knowing what it is. Knowing your specific goal answers the what question. And if you're one of the 1% (okay, its more like the 5% but I couldn't resist), then you already have some experience with the third question. 

What's Your Next Step

No matter why you want to do it (your purpose), no matter what it is you want to do (your goal), your chances of success will improve exponentially when you know exactly what you will do next to achieve your goal. That's where a little planning can go a long way. For many of us, the next best step is to review our current plan to see what might change if we ask these three questions. Maybe its time to have a conversation with my wife, my team, my trusted friends, or with Josh to make sure our video production plan is good, right, and clear.

Jim Munchbach is a financial coach in Houston, Texas, where he offers financial workshops for people in Houston area churches. His extensive experience with clients following disasters like the Northridge Earthquake, Hurricanes Andrew, Katrina, Ike and dozens of other catastrophes has taught Jim the tremendous value of planning-before the unexpected happens. Jim offers Make Your Money Count workshops because he believes good money management is a discipline that builds financial, emotional, as well as spiritual muscle.

With gripping and heart-warming stories, Jim highlights powerful principles that provide clarity and a strong sense of direction in the journey to success, significance, and satisfaction.

Please contact Jim at his website if your church is interested in offering Make Your Money Count workshops. The workshop is offered in 8 one hour sessions or as a weekend retreat.

Contact Jim today at http://www.makeyourmoneycount.org/contact.php

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The cost of living has risen drastically over the past few months, and many are struggling because of it. With the price of gas at $4.00+/- a gallon, even the thought of just paying to get to work overwhelms some people. Now more than ever, people need to think about creating a budget for their home expenses.

A budget needs to be a work-in-process if it is to be successful. It also needs be set up with realistic goals. If you create a budget for every penny that you make and you overspend in one area then you will never be able to stay within your budget plan. Here are just a few suggestions to help you set up a budget for your life:

Keep it simple-don't feel like you have to know the exact amount of everything. For example, if your electric bill is normally $92.56 then base your budget on $100.00.
Start with a list of what your current spending habits are. This is called your "reality check" budget as it will show you exactly where your money is currently going and can show you areas that you can "trim" some savings.
Be honest with yourself. Everyone has spending habits that could be improved. If your "reality check budget" shows that you have more money going out monthly than you have coming in then you need to make some serious changes. How many times a week do you stop for coffee or swing into a store to pick up one item and end of picking up a lot more than just that one needed item.
Create your new budget with goals of what you can spend in each category (i.e. Groceries, gas, "fun money", etc.)
Make lists for grocery shopping and staple shopping and stick to them. Retailers design their stores to make you compulsively spend. If you go in with a list and stick to that list you will get out of the store spending less.
Be determined to make your budget work and yet flexible to adjust your budget as your priorities change (i.e. Daycare versus summer camp expenses)

Creating a workable budget is one of the most important things you can do when the cost of living continues to rise. Knowing where and how you are spending your money will hopefully help you make the right choices when it comes to your spending habits. It's never easy to change spending habits but at times it's very necessary especially when the cost of basic living essentials continues to rise.

If you would like assistance in creating a workable budget please feel free to contact New England Credit Consultants at credit@necreditconsultants.com or by phone at 207-321-9111.

Joanna Murphy is Certified in Bankruptcy and is a Certified Financial Counselor by the Credit Union National Association. Her company, New England Credit Consultants is the ONLY licensed and bonded credit repair agency in the State of Maine. For more information about NECC and to read other articles about Financial Fitness, please visit http://www.necreditconsultants.com/.

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Money Saving Ideas

Each and every person that you speak to about budgeting will have personal money saving ideas. Chances are that some of the ideas will be beneficial and others will be completely useless. People will make suggestions about buying second hand items rather than used, and they will offer advice about ways to conserve on your grocery bill. These are all wonderful ideas, and they will work, but you have to start by creating a budget.

A budget is far more than just a way of keeping track of your spending. It is a way to plan for your future and understand your personal spending habits. It will give you a guide that you can build on. Additionally, if followed, it will enable you to better manage your income and will permit you to reach your financial goals.

When you are working on your budget following these tips will make certain that you are able to stay on track:

1> A budget is a family plan. If you are in a relationship, it is essential that both parties are involved in the planning stage and are willing to work together to achieve the same goals. If both people are not willing to work towards the same goal, the budget is doomed to failure.

2> Always plan to put some money away as soon as your check arrives. You have to build a savings cushion. This money always comes first. Regardless of your debt, make certain that you pay yourself first.

3> Put the credit cards away. Cards should only come out in cases of emergency. They are not to be used on a daily basis. At the beginning of the week or month, each person is given their cash allowance, when this money is gone, there is no more money.

4> All large purchases, i.e. any purchase over a hundred dollars must be agreed upon by both parties. This lessens the chance of either person making an impulse buy.

5> Keep all of your receipts, absolutely everything, and have a notebook to record any and all spending. This includes the coffee at the vending machine and the pack of gum at the corner store.

6> Reassess your budget regularly. Things change, and you need to be flexible. You may realize that you have to re-evaluate things and reallocate your funds.

7> When making your plan, set up a convenient way of paying your bills. Try to have only one or two dates a month when bills are due. Furthermore, you can talk to your creditors and ask them to change the date of your payments. If necessary speak to the credit card companies and have a direct payment method put in place. Late fees and overdue accounts will quickly add up and will throw your careful budget off track.

8> Set up goals. If you want to redecorate the bathroom, plan to put money aside for everything that you need. Do not make any purchases on your credit card. Have a special savings account or keep the money in a cookie jar. This money is for decorating and nothing else.

9> If you discover that you do have money at the end of the month, it goes into your savings. This is not money that you can just spend freely.

10> Create a realistic budget. Remember you have to be able to adhere to this plan. People often fail the first time that they try to setup and implement a budget because they make it too rigid. It is essential in the planning phase that you are willing to compromise and adjust to the needs of your partner.

A budget is going to take time, and you have to give it a chance. You are not going to change your habits overnight. However, it is one of the best money saving ideas that you can implement.

Rick is the author and is always looking for a way to save money. The website tightwadsdigest.com was started to share ways to save money. On the site there is a FREE Money Saving Tips Book available for you to download. You will find information on budgets, money saving ideas, frugal living, grocery shopping tips and other money saving ideas. There are many Money Saving Ideas resources located at http://www.tightwadsdigest.com/

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Everyone knows they must eat to stay alive, and food is a continuing expense. It is possible to cut luxuries and even more critical good from a budget, but groceries expenses can never be eliminated. Fortunately though, they can be reduced. Through good shopping habits, everyone can find good daily savings in their grocery budgets. Over time, these savings can really add up and bring considerable savings on groceries bills.

Bulk is not always the best
Buying in volume saves money, correct? While almost everybody assumes the answer is yes, it is not always so. Manufacturers have caught onto the fact that most consumers simply presume the volume items are more affordable and occasionally charge a price premium on bulk items in excess to the extra volume of non-volume purchases. There is also the possibility of spoilage. For this reason, take a minute and do the math before purchasing volume items.

Watch out for eye level
Marketers have long known the people are most likely to buy things that are at the same level they are looking. For this reason, stores will put products with the highest profit margins at the level customers are most likely to look. Therefore, it is an excellent practice to look higher and lower to get the best possible deals.

Stick to a purchasing list
One of the greatest enemies to saving money on food is impulse buying. It is always a good idea to find out what is on sale before going to a store and to make a list based on what is really needed. Then, stick the list and avoid buying anything else not on the list unless it is certainly something that is really needed and being sold at a good price.

Keep clear of convenience items
While prepared foods save time, they usually are very low in nutrition. They also will cost more. Nothing is more important that health. Taking the time to prepare food is a good investment since it will insure the meal has the highest nutritional content possible for the lowest possible cost.

Clipping coupons
Many consumers fail to really take advantage of the savings offered by coupons. With a small amount of organization, they can give enormous savings to people who use them. One bit of caution is to avoid buying items that are not needed. Even the most heavily discounted item is not a good buy if it is not really required.

Look for day-old items
Consumers turn their noses up at many items well before they have truly begun to spoil. The differences between day-old and totally fresh foods are usually very minimal if there is any real difference at all.

Do not be pulled into buying
Another old merchandising trick is to entice individuals into stores with sales so that they will purchase other items. Be cautious not to fall for this trick when going to a store and only buy what is on sale.

Do not shop on an empty stomach
It is the most difficult to keep from straying from the sales when one is hungry. If at all possible, do not go grocery shopping when on an empty stomach to steer clear of making costly, unneeded, fatty purchases.

Shop at a farmer's market
Farmer's markets are often a pleasant way to get wonderful fresh food and a good price. Take advantage of them.

Choose the right recipes
The cost of a meal has as much to do with what is eaten as the deals one can find on food. Look for and try out thrifty recipes to high-quality dishes that can be prepared cheaply.

Other ways of saving on groceries such as buying generic are out there. Every consumer has unique needs so everybody will need a different strategy. Do not be afraid to keep trying things to unearth the best means to supermarket savings.

See Money Saving Tips for many tips on saving money on everything from utilities to taxes as well as putting money away in ways to include gold as an investment.

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Budgeting or financial planning involves estimating the amount of income and the expenses of the coming financial year. This is important in that it helps in the management of goods. It is able to make an enterprise to know what it can and can not be able to do together with its achievements at the same time.

The budget should be in a position to show the goals and priorities of the organization. This enables long term planning which will enable the organization achieve its goals. In order to be able to determine all the expenses and the income received the financial reports and records should be submitted to the finance committee at all the time. The committee should not rely upon the verbal reports of the manager, accountant or the bookkeeper as the main source of financial information.

All the sources of income to the business entity should periodically hand in income and expenses budget to the committee. If examinations show other obligations hat are past due then their payment plan should be incorporated in the budget. All the expenses and incomes should be budgeted for conservatively and realistically. Any additional funds should be put aside in order to cater for future needs that the organization might face. It may be on operational expenditure or repair/capital usage.

If the entity is a school then the finance committee should be having all the copies of the whole budget of the school. This helps to determine the amount of money that the school needs and the amount of money it can be able to get from its sources. After the finance committee has gone through all the projections of income and the budgets from all the various departments and the organization should be in a position to develop a budget that caters for all the needs of the organization effectively. If the committee can not be in a position to achieve this it should then come up with other alternatives that will balance all the needs of the organization. These alternatives may be things like fund raising ceremonies, giving willingly, sharing of equipments between departments and revaluating the need for new equipments.

The budget should be balanced between the organizations goals and objectives. The financial trading year budget should be prepared and approved by the finance committee who has the final approval authority. The budget should then be at the disposal of all the members of the organization.

Cash management budgeting. This involves the anticipation of revenue and expenses monthly allowing planned expenditure to reduce cash flow problems. The organizations cash should be in balance with the expenditure of the month. Cash of more than three months should be invested. Bank balances on commercial banks should not be more than 100,000 as more funds than this are not federally insured. Loan funds are some how safe for organizational or institutional funds. To manage cash in the proper manner the organist ion should have proper knowledge of the organizations expenses and planning for the usage of money in the right and appropriate way.

I am a freelance writer who interest in writing about finance issue! You can read more about it by visiting my finance blog

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In these harsh economic times people are looking to save money wherever they can. Let's face it pay rises are minimal & in fact many people have had pay cuts & lots more count themselves lucky to still be employed. Therefore the only way to get more money in your pocket is to save on what you are already spending.

Utility payments for residential properties are just like a businesses fixed costs in that they are expenses that must be paid, however if you can make savings you increase your "bottom line" ie profit. So in the case of residential customers you can increase the cash in your pocket by saving on your fixed costs.

Saving on utilities however is not as easy as it should be, many utility providers have numerous "plans" that you can be on, all with different tariffs, such as; Standard Rate, Online Saver, Internet Plan, Saver 50, Fixed Tariff etc etc. In my opinion utility companies deliberately confuse consumers who then end up staying on the same payment plan to save on the hassle of switching. This means that thousands of people are paying too much for their utilities. The government is trying to force the big utility providers to make their bills easy to understand, for instance from April 2011 all providers had to provide annual usages on gas & electric bills, this was to make it easier to compare costs with other suppliers. They are now trying to get these same providers to cut down on the number of tariffs available to cut confusion for customers.

Steps to Making Savings

So how do you make sure you are not paying too much? The first step is to contact your current supplier & ask them if they have any "saver tariffs" that you could switch to which would mean you would be paying less. In an ideal world your supplier would contact you & advise you of these "special rates" & so reward you for being a loyal customer; however I very much doubt that this will ever happen. Just to give you an example I did a price comparison check on gas & electricity today using one of the big suppliers, compared to their standard tariff if I switched to one of their "special rate" deals I would knock 17% off my bill! Do you think that this company is going to give me a call & advise that I should switch?

In the above example I used a price comparison site to compare what I'm currently paying against what I could be paying. It is very important that when you do a comparison check that you use your actual usage figures & not simply your postcode & current supplier. If you don't use the actual figures ( remember above I advised that all suppliers must now show these on your bills, if they don't ring them & ask ) then you are not getting a true comparison & you could end up switching to a supplier under the wrong impression that you are going to save money.

Just a warning about price comparison sites, these sites are affiliates of the utility suppliers; this means that if you use their site & click through to a supplier & sign up for their services then the owner of the comparison website will receive a commission. If you do not switch your supplier the comparison site will not earn any money, for this reason make sure that you use more than one comparison site & see if they advise you to switch to the same supplier.

Another tip is, once you receive advice to switch to a new supplier, give your existing supplier a call to tell them you have found a better rate & can they match or beat it.

In the advice above I have mainly been talking about gas & electricity suppliers, water supply is not de-regulated yet so you are stuck with the same supplier, however if you are a low user of water then get a meter fitted & this will save you a lot of money.

Telecommunications & Broadband

For telecommunications including broadband there is the same confusion around as that encountered with gas & electricity supply. There are lots of companies offering all sorts of deals for "cheap broadband" "free calls" " ultra fast downloads" etc etc A lot of the suppliers use what is know as "confusion marketing" where they offer extremely cheap deals to entice you in but then have all sorts of small print & add-ons to totally confuse you. There is no quick fix here at the moment, basically you have to decide what you are looking for ie the fastest broadband or free calls 24/7 & then read all the small print of all of the current offers. Remember that when a company offers broadband at £x per month you have to add line rental to that in order to get the total cost.

Then you have to consider how much data you download every month & whether this will be included in the price. Next you have to consider how many calls you make per month & how much this is currently costing you. Check to see what "free calls" actually means, is there a limit, are 0870 numbers included, what about the cost for calling mobiles? Very often in order to receive these "free calls" there is a monthly charge, so the calls are not actually "free".

As most people take phone & broadband as a "package" in general there is a simple way to chose what you want, taking speed out of the equation, if you only use the internet to browse the web, check emails & do the occasional download then you should go for a package with a capped usage rate which will be the cheapest option. You will probably get evening & weekend calls thrown in with these packages, so unless you are around a lot during the day then this will be fine.

If you are a heavy internet user, or have kids!, then go for the unlimited data packages, that way you don't run the risk of getting a large bill because one of your kids left an online game running overnight!

If you make lots of phone calls from your landline then it makes sense to go for a package that includes unlimited calls 24/7. Some providers will even give you this free of charge. Remember though that these free calls do not include calls to mobiles, there is only one company I know of that allows free calls from landlines to mobiles. For calls to mobiles it is always best to use your free minutes from your mobile provider.

Summary

Please note I have deliberately not used any company names in this article as I do not want to seem biased towards any particular supplier. Switching from your current provider may seem like a lot of hassle, believe me, it shouldn't be. As long as you keep your wits about you & follow the advice above, then you will save money. It is probably worth re-assessing your utility spending every quarter unless there are some big announcements on the TV about prices falling for a particular utility ( when did that last happen? ).

John Mac is a Professional Network Marketer & Platinum Author. He helps people Save and/or Make Money. For more information please visit his Website.

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