Budgeting Finance

One of the most important things you can do regarding your finances is learn how to budget your money properly. But this is often easier said than done. How do you know if you're spending too much or what you should cut back on? How do you stick to your budget once it's made?

The easiest way to determine if you're spending too much is to subtract your expenses from your take home pay for any given month. If you have little or nothing left over, chances are you are either spending too much or not making enough to fit your current lifestyle. Either way, you need to adjust your budget until you have a decent amount left over. Remember, you should be putting at least 5% of your income into an emergency savings account. If you break down your expenses but are not sure where you should cut back, consider this basic breakdown of expenses.

30% - Rent or Mortgage

10% - Utilities

15% - Food

15% - Transportation

10% - Debt

5% - Clothing

5% - Savings

5% - Investments

3% - Charity

2% - Miscellaneous

Some of us might look at the last few categories of the breakdown and push them off to the side but they are equally as important as the other categories if not more so because paying yourself first should always come as a priority if you ever want to get ahead of the game. Even putting away just 10% of your income towards your future can greatly add up over time. Another thing to seriously consider (if you have not done so already) is investing. Don't be afraid to spend a little bit of money on your education of investments since this knowledge can prove to be invaluable in the future.

Of course, this breakdown of expenses is just a rough guideline and you'll have to adjust your budget for your own personal situation. For example, if you are saving up for a down payment, you might want to put much more than 5% of your income and cut back on entertainment expenses instead. If you are severely in debt, you might have to put much more than 10% of your net pay into paying it down. The more you save on interest, the more you will have for other areas of your life.

Those individuals who are great with money tend to put a large portion of their income away to better secure their future in specific investments which they have researched thoroughly. Those who are bad with money tend to spend it as soon as they get it and therefore end up living pay check to pay check. If they do end up putting some money away in their savings, it's always gone as soon as a rough patch comes up, and if they do end up investing at all, they often do it without any research which results in them losing everything instead of profiting. This is why expanding your financial knowledge is so important, so make sure you leave some room in your personal budget to enhance your financial education.

The last thing you need to keep in mind when it comes to budgeting and saving is that it takes time. You have to keep putting in a consistent effort in order to see results in the long run. Don't get discouraged because it seems like it's "taking too long." Those who persevere will come out on top.

For more information, please see Budgeting and Saving

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.

My philosophy is simple; The key to saving money in your everyday life is to take some time out just once a month to look at the everyday things you utilise and pay for and see if there is room for improvement.

These days, what once was a luxury has now become a necessity... yes that money munching mobile phone. How we ever lived without them, we'll never know. And now with iPhones and the like they provide us with more assistance than ever. But the trap with our mobile phones is, it's very easy to let the cost spiral out of control if we don't keep an eye on them. So here's a few things you can take a look at this month to keep your mobile mayhem under control.

1. Review your plan:

I've heard it over and over again, "I wouldn't have a clue how much my calls cost". It doesn't take long to make a quick call to your current provider and find out the facts. If you want to save money, you need to know how much money you're spending! If you know how much you're spending, you'll make a mental note if you need to reduce the length of your calls, the amount of texts you send or the amount of information you're downloading. You'll also gain the leverage you need to go out and look for a better deal and save money.

Remember to keep an eye on when your contract is ending. The best time to negotiate a better deal is when you are nearing the end of your contract. After you know the facts, get online and hunt down the best deal on the market. You don't have to move, simply ask your current provider to beat it. Be strong in expressing your ability to switch providers easily if they are not stacking up and let them know you'll be leaving them behind if they don't provide you with a better offer (of course, check what costs there are to get out of your existing contract if you are not nearing the end). Chances are you'll be transferred to someone whose sole purpose is to retain your business so put your negotiating skills into super drive.

2. Make your existing mobile plan work better for you:

Use your mobile phone wisely and make sure you're getting the most out of any freebies or low cost services. Find out from friends and family which provider they are with so you can take advantage of free talk time or keep your conversations brief if they are with a different carrier. You may be surprised to find you regularly exceed your calls limit but don't use all of your texts, so changing the communication style you use could help you save.

3. Don't let the texts take you away:

Text messaging has become hugely popular and continues to build momentum every day. It's easy, quick and let's be honest, sometimes it's easier to send a text than talk. But just remember, a phone conversation that could take 5 minutes by phone can take a lot longer by text, chewing up both your time and your credits. Texting is easy, but it can be costly.

And if you have kids who have mobiles which you are paying for, here's an interesting fact for you; 1 in 3 teens send an average of 3000 texts per month! Because it's so easy to get caught up in the text phenomenon, the best solution is to find out if you can get a plan which includes unlimited texts to play it safe. Another alternative to text is instant messaging. If you have an iPhone or a similar smart phone, why not take advantage of MSN Messenger and other major messaging clients. If you have friends that you regularly talk to that are online it can be just as easy to send a quick message via IM.

4. Make free calls on the internet:

Do you have broadband and a webcam on your computer? You may consider using Skype software to phone over the internet, anywhere in the world for free! Basically Skype users can call each other at no cost and the most fun part is that you can see the person you're talking to. Skype also offers the service of connecting to 'normal' phone for a small charge.

5. Don't pay for information calls:

If you own an iPhone or a similar smart phone, make it work for you. Many of us are still in the habit of ringing information numbers when we need a phone number or address in a hurry. Calls to information numbers can cost you heaps so why not change this old habit and make your smart phone earn its keep. Simply go online and find the information you need within seconds, it could save you quite a few dollars by the end of the month.

6. Do you really need that app?

Smart phones such as the iPhone are great fun and offer some fantastic applications which not only keep us amused or up to date with the latest music but also help us organise our lives or learn new skills. The cost of applications is really incredibly cheap considering the content we are given in return. To think that a Nintendo game costs you around $100.00 but a new application for your iPhone costs around $2.00 is quite mind-blowing!

These apps are really cheap but the question you need to ask yourself is do you really need it? Say you bought a few apps and songs each month at $2.00 each, let's say 10 a month. That's $20 a month which equals $240 per year! For most people, that would probably cover 2 months worth of phone bills. It adds up quicker than you think doesn't it? By all means if an app is useful to you or you get great enjoyment out of it, go for it. But if it's just the latest fad or a friend tells you to check out an app because it's cute, just take a minute to think about the $240 per year figure again.

7. Make money from your old mobile:

Do you have an old mobile lying around or do you simply give your phone away when you get a new one? Why not get some money to put towards or even cover next month's bill! There are stacks of people ready and willing to buy your old phone, and now there are even businesses that will buy them quickly and easily too. Ebay is a great place to sell your phone, but if you don't like the risk of an auction you can look at companies such as money4mobiles.com.au and be offered a fixed price.

Don't forget, every dollar you spend unnecessarily makes a difference, so take time out this month to check your mobile phone bill and make some quick changes that could make a big difference by the end of the year.

Happy Saving!

© Angela Cooney 2010

Angela Cooney has been helping people save thousands for the past 20 years through home loan company Assured Home Loans. Her passion to help people save money, not just in the home loan sector, saw her start a section in the Assured newsletter called 'Money Savings Tips' which now leads the way with the highest readership and the most amount of loyal followers of any other section.

You can visit Angelas money saving tips at http://assuredhomeloans.com.au/home-loan-learning-centre/angelas-money-saving-tips.aspx

If you'd like to find out more about saving money on your home loan visit http://assuredhomeloans.com.au/

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 just finished grading my college students' final exam papers. I was delighted by the enthusiasm reflected in their answers to the disguised, real-life case study. I drilled into them that their only control over the exam was their preparation; that is it! Therefore, instead of worrying about the likely result, I suggested they focused on what they managed, and the right result would follow. They did, and it delighted me.

Likewise, a budget deals with future events, which you cannot predict or control. That's why you must focus on what you can influence--the assumptions, which must be realistic.

Albeit you cannot predict the result, the immense learning you get during these three budget phases, should convict you to work with a budget: preparation, probabilities, and execution. The issue is not whether you will get the correct result by working with a budget. It is defining realistic assumptions and goals in advance, and adjusting your behavior as you progress to them.

Before examining the three phases, let's understand the goal of a budget. Simply, it is to identify and cost resources needed to get to specific future goals.

Preparation

In the preparation phase, you have two objectives. First, you develop practical goals and assumptions. Second, you pinpoint opportunities and challenges that might affect your journey to achieve your goals. If one of your goals is to save enough for your education expenses, the preparation stage will help you see the sacrifices you might need to do this. Alternatively, it might show you that there should be no issues.

Here are specific lessons you could learn as you prepare the budget:

You will understand likely available resources, and choices, and so allocate funds and time in advance, in the most effective manner. Without this process, you will react to events, often with limited options.You will get a holistic view of your financial health: what you have, and how that might affect what you would like to do. If you are in debt, this will constrain your action. You would know this early, and implement plans compatible with that state. If you by-passed this phase, you would move along, only to halt midway, because you ran out of funds.If you are unhappy with your financial health, the starting point for the budget must show that state. This will be what you must work with. Therefore, you will need to decide before your journey, which plans or projects to accelerate, decelerate, or stop, to take you to your destination.Considering available resources, you will understand the time you might need to reach your goals. At this early stage, you can choose to change priorities and resource allocation, if this time is unacceptable.

Probability

Integral to the preparation phase, but a separate activity, is the need to look at different alternatives' likelihood of success. With this, you can decide how much risk you are willing to accept before committing to specific goals. As well, you can decide between competing goals. You might have to choose between accelerating mortgage repayment, early car replacement, remodeling the bathroom, or a vacation.

Examining the likely effects before deciding, might comfort you as you decide. Besides, it will highlight areas for specific monitoring as you progress. This leads to the third key.

Execution

After you do the budget you should follow the plan to get to the identified goals.

However, as you enter the budget period, the budget assumptions might turn out to be dissimilar to yours. They won't be wrong, just different: the gas price, food prices, clothing, school fees, and so on, might vary from what you estimated. That's fine; the key is to monitor your progress on the path, and immediately you spot a change in assumption, you recalculate its effects and adjust your behavior.

If the gas price is higher, you must review transport plans to see if you can reduce the amount of driving. If you cannot, you must look at other areas for behavior adjustments. Maybe, you must defer buying clothes, and so on. The important point is that you must control your reaction to events. If you do not, you will follow events and borrow funds to do what you planned with the earlier, outdated assumptions.

Summary

You need to do each step to benefit. Doing one without three, or two but not one, will be sub optimal. Following these three budget stages is not a panacea for your financial health. However, the lessons you learn should help build your confidence, which in turn, should lower your anxiety about your finances.

Nevertheless, the key is to understand that if you choose to spend without a budget, events will lead you to debt. Essentially, they will control you.

Copyright (C) 2012, Michel A. Bell

If you want to plan and execute effectively, monthly personal spending plans to stay debt free, learn to work with this free GPS Money Guide: http://www.managinggodsmoney.com/essentialtools/gpsmoneyguide.php.

Michel A. Bell is an author, speaker, founder and president of http://managinggodsmoney.com/, former senior business executive devoted to provide free Christian financial advice to help folks live debt free lifestyles.

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.

If you're like me and thousands of other Australians, there's a good chance you may have made a resolution at some stage to lose those love handles. One of the first things we tend to think of when trying to lose weight, apart from eating the right diet of course, is joining a gym to burn those unwanted calories away. So what does this have to do with money saving tips? I hear you ask. Well while gyms are becoming very popular these days, they can also work out (pardon the pun) to be very expensive, so here are some tips you may like to consider to make sure the only burning you do is off your waistline rather than burning a hole in your pocket!

Is it really worth joining a gym?

Now don't get me wrong, joining a gym can be very effective and motivational and if you go there 4 times a week you will probably be getting your money's worth. The problem is, most people don't tend to keep up this strict regime and honestly, what starts out as a great New Year's resolution ends up being a $65 per month commitment to a gym a lot of people end up going to a handful of times a year.

gymprices.com.au is a website which has recognised that gyms very rarely publish their full membership fees on their websites, so they've invited everyday people all over Australia to report on how much their gym costs. According to their site, the average gym price in South Australia is $65.00 per month. That's $780.00 per year!

If you are considering joining a gym, take a few things into consideration. Try and find a gym that offers a free trial, no lock-ins, no joining fees etc. No lock in means no $780 minimum 12 month commitment if you change your mind. After checking out gymprices.com.au, take a look at each gyms website and see if they have any special offers. For example EFM has an offer at the time of this article which is $25 for 5 weeks membership. 5 weeks is a great amount of time to trial something before committing your hard earned cash.

So what's the money saving alternative? Workout for FREE!

Grab your racquet and head to the nearest court

The great thing about living in Australia is taking advantage of our great outdoor Aussie lifestyle. You shouldn't have to go too far to find a free tennis court around your area, in fact there could be one within walking distance. Don't forget, you don't have to be Lleyton Hewitt to get great value out of a tennis game. No matter what your skill level you get a great cardio workout running for the ball and good muscle tone from those quick takes offs, strong serves and of course bending over to pick up your ball so many times!

Step out and start walking

Walking is 100% free and unlike some of the gym equipment at your local gym, your legs are always available when you want to take a walk. If you can get up early in the morning, walking before breakfast is a great way to set your metabolism and help your body burn fat all day. If you're walking outdoors you also get the bonus of fresh air and some great time to de-stress by yourself. Alternatively you can invite a friend along and catch up on your social life while working out. Also remember there are little things you can do to get some extra walking in like getting off the bus one stop early, walking to the post office to send your mail or if you have an extra family member of the four legged variety, take the dog along with you so while you're exercising your also creating a well balanced furry friend.

If you really enjoy walking and you live in South Australia, there are some great walking trails right on your doorstep which you can find out more about at http://www.southaustraliantrails.com/trail_experiences.asp?type=walking

Bring on the deadlytreadly

Yes I know bike helmets flatten your hair and there's a risk of getting caught in the rain, but cycling is a cheap and effective way to get fit. The bonus is if you have kids, your exercise regime can incorporate some valuable family time and provides a healthier alternative to sitting in front of 'the box'.

Cycling to work will not only make you fitter, but you'll be saving money and the environment at the same time. And don't be too hard yourself if you can't ride to work every day, even once a week as part of your ongoing exercise regime will make a big difference.

Exercise at home

If you're a busy mum like me or just have a chaotic schedule, it can often be hard to find time during the week to venture outdoors, especially if the kids are young and you can't leave them alone. Exercising at home really can be a great option so here are a couple of suggestions;

If you have a treadmill or exercise bike you haven't used in years or it's out collecting dust in the shed, now is the time to clean it up and put it to good use. You don't have to run a marathon to get fit, walking at a brisk pace for 30 minutes three times a week is a great way to maintain your fitness. Hey, if Cesar Milan (the dog whisperer) can get your dogs to do it, surely you can handle it!Get revenge on the kids. If you have a child who is obsessed with the Wii, it's time to give them a break and take over. Wii fit is probably one of the most fun ways to get fit right from your lounge room. It's also another great exercise option than can be fun for the whole family.Buy, hire or borrow exercise DVD's. Exercise DVD's are again a great option to exercise in your own time in the comfort and privacy of your own home. You can find all the latest styles from high energy workouts to muscle toning and relaxing Yoga routines. It really is an inexpensive and convenient way to get fit and you could even build your own personal library to suit the mood you're in.Get free workouts online. It's always worthwhile searching Google for free stuff. If you search for 'free workouts' or free exercise routines' or the like, you'll find downloads, videos and much more available for free 24 hours a day. Gotta love Google!

So if your New Year's resolution was to get fit and join a gym, I hope I've given you some options to think about and of course as always, helped you with some money saving tips.

Happy Saving!

© Angela Cooney 2010

Angela Cooney has been helping people save thousands for the past 20 years through home loan company Assured Home Loans. Her passion to help people save money, not just in the home loan sector, saw her start a section in the Assured newsletter called 'Money Savings Tips' which now leads the way with the highest readership and the most amount of loyal followers of any other section.

You can visit Angelas money saving tips at http://assuredhomeloans.com.au/home-loan-learning-centre/angelas-money-saving-tips.aspx

If you'd like to find out more about saving money on your home loan visit http://assuredhomeloans.com.au/

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.

Many people aim to save money. This article in the 'Budgets How-To' Series explains that not all savings are alike, though!

Savings are high on most people's financial wish list. How about yours?

My question to you: What are you saving for?

You should have a clear, concise answer ready to this question. If not, then you may find you're also having trouble accumulating or holding on to any savings.

A clear goal will give you clear results.

Before we go any further, let me share a quick definition:

When we talk about SAVINGS with clients, we're referring to their WEALTH CREATION FUND.

A lot of people talk about savings, but really mean an emergency fund for any unforeseen expenses. They then often decide at some stage that a holiday, new entertainment system or other luxury expense fits this 'unforeseen expense' category.

The savings usually end up going up in smoke & they're right back where they started!

No need to stand there looking guilty, staring at your shoe laces,.We've all done it.

We're here to talk about how to get you to your financial goals as quickly & painlessly as possible. So we need to plead 'guilty as charged' and learn from it.

First ask: "Do I want to create wealth for myself?"

If, like most people you jump on the nearest desk & yell "Hell, Yes!", then let's set you a high priority goal to accumulate savings for wealth creation.

Then ask: "What else do I want?"

A whole list of thing will come up. These are usually shorter term goals and are often in the luxuries category.

Now, there is nothing wrong with luxuries. In fact, it's very important to enjoy some rewards on the way to your long-term goal!

However, don't be a fool and go mixing up 'saving' with 'saving up for big-ticket items'. One is for your financial security. The other is for fun & self indulging.

Make a list of these luxury items. Try to group them & list them in order of priority. Holidays, birthday parties & an emergency expense fund are important to most people.

I suggest you put a separate entry for each of these into your budget template. A good budget template will let you see the annualised amount for each expense.

This is really useful for planning purposes (eg if you'd like to manage an annual ski trip, you'll have an idea of how much it costs and can break it down into weekly savings needed towards it).

It's also useful for a 'reality check'. See how much that monthly day spa visit adds up to over the course of a year. You might decide to substitute it with a soak in the tub at home by candle light, enjoying your favourite take-away and a good movie afterwards.

The secrets of good 'Budgets How-To' practices is that it's all about making good choices. Every day we make choices which affect our financial future.

The more you can automate your budget system, the less opportunities you'll have to stray from the plan.

Automation is key to your budgets how-to success. Before you automate, though be sure you know what savings plan it is you're setting in place!

Have a most prosperous day!

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.

In order to save an incremental amount each week or month you need to either increase your income or cut back on things you buy on a regular basis. This means that if you do increase your income by finding a second job or getting your spouse back to work then odds are you can find some spare money to save. Most people already work all the hours required in a full time job and so the only option for them is to decrease their spending. This is a lot harder than you think especially if you are not the kind of person who is sorted financially.

This step will require a disciplined mind and organizational skills. You will need to budget a certain amount for all the circumstances and needs you envisage each week including things like petrol, food, clothing, medical expenses, insurance, rent, electricity, phone and a myriad of other expenses. After all this is calculated you also need to include entertainment and money for treats. Of course this is where most people blow their budgets. It is precisely this, the odd cup of coffee, which can send a person bankrupt. After the budget has been made it is up to the individual or family to stick to the plan. It is in the interest of the people themselves that you are strict with each purchase you make ensuring that things you buy are what you need rather than what you want.

Another thing to be mindful of is unexpected bills such as when the car needs repair or something goes wrong with the house. In these circumstances unless you have budgeted for unforeseen incidents you may well need to dip into your savings. At least you do have your savings for this purpose. It is extremely hard for a family to budget properly but it can be done. A lot of families in this time and age do indeed have some sort of budget anyway only it's a little bit more flexible. Just by changing a certain brand of food or product, and tweaking a few changes here and there some families find it quite easy switching to a new stricter budget.

All in all it is about compromise and finding a solution to your problems or needs. If the price is right and you have searched for the lower cost product then it will help you enormously in the long run. All your savings will add up and over time accumulate into a tidy sum. And so long as you have budgeted well you will also find you have not entirely lost out on good offers or special deals. You will be able to take advantage of some further savings by buying in bulk.

Once you get the bug for saving you begin to form good habits and you will find it much easier to say no especially when you look at your flowing bank balance. Along with a great saving history you will also empower you to change other aspects of your life to compliment your newly acquired skills. Saving money is a skill and one that will benefit you in a lifetime once mastered.

For more information, please see Budgeting and Saving

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 writing to the FEMA Assistance to Firefighters Grant, there are many tips that can help win awards.

First - find a competent proofreader. If a proofreader can understand what you are trying to say, then surely the FEMA Assistance to Firefighters Grant reviewer will know what you mean!

Second - ask for what you truly need. No reviewer will approve a huge wish list that includes everything from soup to nuts! You truly want to ask for items that you can prove will enhance your own fire department's ability to provide service to the community for whom you are responsible. Ask yourself- "How will this help save lives and property?" If the answer is clear, then the reviewer will be more likely to give you the points needed for an award.

Third - have a very clear budget. Describe the items you want to purchase with as few words as possible. BUT - list them out clearly with details. For example, tell how many gallons per minute a pump will have OR tell how many horsepower a chain saw will have.

When you have correctly described the items, then delineate them in an orderly price list. It is best to title this section in your narrative. List is out as "BUDGET" or "ITEMIZED LIST" by using all capital letters in this sub-section. Make it clear for the reviewer. Remember, the reviewers are human. They form opinions based on the facts you give them. If your details are unclear, do not total correctly, or are difficult to find in your narrative, then the reviewer may not give you all of the points you need to win an award. This is not their fault if they cannot easily find your information. Do not make this mistake.

Follow these basic rules when you are writing your grant paperwork:

1-Title your information

2-Clearly list your items with prices

3-Make certain that the math is correct for budget totals

Theses hints should help! Now - get writing and win a grant award!

For more help you can search for "AFG Grant Writers" and I am sure that you will get some ideas on how to improve your grant chances for receiving an award! These grant writers will have all of the tools needed to navigate you in the right direction to pursue your future awards. They will be happy to assist you in any way dealing with the FEMA Assistance to Firefighters Grant.

More information can be viewed at http://femafireactgrant.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.