Even when both partners in a family work, money can still be tight. It costs a lot to afford all the essentials in life including a place to live, food and car expenses. Add to that a bit of spending money and some unexpected purchases and there can be little to no money left at the end of the month. Setting up a monthly household budget is a great idea regardless if there’s a little or a lot of money to work with.
Salaries are really the foundation of any financial plan. If the person works at a job where they are paid a certain amount week after week it can be a bit easier to plan a monthly household budget. People who are paid on a commission basis may find it a bit more challenging to work out a financial plan, but it certainly can be done and the salary portion should be an average in this case, as opposed to an exact amount.
If you’ve never created one of these before it can be a bit daunting. The easiest approach is to list all the money coming into the home and all the money going out. To do this effectively a person should really document all the expenses they make in a one month time frame. This includes every stop at the convenience store they make, as well as every penny they spend in vending machines.
It can be difficult to itemize every dollar but it’s really important. Doing this helps the person preparing the monthly household budget by showing them where excess money is going. It’s very surprising how quickly trips to the mall or sporting events add up.
Working the old-fashioned way with a pencil, a calculator and a piece of paper can be time consuming and obviously can lead to some mistakes being made. For anyone with a home or office computer, using monthly household budget software is really the best approach. All that is required is that you key in all the relevant numbers and the program will offer suggestions regarding where money can be saved or where it can be redirected.
Debt can be overwhelming and for someone who is juggling balances from one credit card to another it creates a lot of stress. Preparing a monthly household budget in which the focus is on paying down the debt as quickly as possible is really beneficial. A good way to do this is to think about where money can be saved and then using that to pay a credit card. This might include not buying new clothes, waiting to rent a DVD instead of seeing a movie in a theater or giving up going out to eat for a few months. Once a person sees just how much money they are using on non-essentials when they make their budget, it becomes much easier to save.
A family budget can really help. Here are some helpful articles and resources to help you get control of your family's finances...
Thursday, May 5, 2011
Monthly Budget
One of the best ways to manage your personal finances is to create a viable budget that you can follow. Establishing a monthly household budget is no simple task, though and you may find yourself pretty discouraged in little time at all. Fortunately, there are a few things that you can do to get your finances well organized and monthly spending under control.
I’ve heard plenty of different suggestions including--and I’m not kidding—putting your credit cards in ice. Yes. You got it. You should freeze your credit cards in water so that you have to wait until they thaw before you can use them. How this can help with a monthly household budget is beyond me.
Actually, I do see the logic, somewhat. After all, if you have to wait for the ice to thaw you are less likely to make spontaneously rash shopping errors. Overspending is often done on the spur of the moment and waiting for the cards to thaw is a crafty approach but I know myself too well to include it in my monthly household budget strategy.
Don’t forget that ice can be chiseled in a fraction of the time and in this day and age, all you really need are the numbers to make online purchases. The old credit card on ice is just not a viable option for my monthly household budget maintenance program.
Organization is the key factor in the process of creating a monthly household budget that you can trust. And, let’s face it; there are few of us who are really well organized when it comes to personal finances. It helps to get a professional on your side to help you work through a monthly household budget that will really work for you realistically.
The help comes in all different forms. You can browse through the various options online and in no time at all you can be well on your way to getting your finances under control. Creating a monthly household budget is very important and it is crucial that you look into viable options, not credit cards on ice.
There are printable forms that you can use. These forms help you take a good long look at how much money is coming in as well as how much money is going out. Once you see the information in black and white, you can work towards creating a monthly household budget that works for you and your family.
I’ve heard plenty of different suggestions including--and I’m not kidding—putting your credit cards in ice. Yes. You got it. You should freeze your credit cards in water so that you have to wait until they thaw before you can use them. How this can help with a monthly household budget is beyond me.
Actually, I do see the logic, somewhat. After all, if you have to wait for the ice to thaw you are less likely to make spontaneously rash shopping errors. Overspending is often done on the spur of the moment and waiting for the cards to thaw is a crafty approach but I know myself too well to include it in my monthly household budget strategy.
Don’t forget that ice can be chiseled in a fraction of the time and in this day and age, all you really need are the numbers to make online purchases. The old credit card on ice is just not a viable option for my monthly household budget maintenance program.
Organization is the key factor in the process of creating a monthly household budget that you can trust. And, let’s face it; there are few of us who are really well organized when it comes to personal finances. It helps to get a professional on your side to help you work through a monthly household budget that will really work for you realistically.
The help comes in all different forms. You can browse through the various options online and in no time at all you can be well on your way to getting your finances under control. Creating a monthly household budget is very important and it is crucial that you look into viable options, not credit cards on ice.
There are printable forms that you can use. These forms help you take a good long look at how much money is coming in as well as how much money is going out. Once you see the information in black and white, you can work towards creating a monthly household budget that works for you and your family.
Sunday, February 13, 2011
How to Save Money and Avoid Temptations by Ravinder Tulsiani
Saving money and financial management is very crucial in one's life. Money is very important in order to survive in this world but only a few people know how to manage their household budget properly. Many people have a hard time saving money even if it is for their own good.
Most of the time, you may be motivated to save money but there are times when temptations come your way and before you know it, you have already spent the amount that was supposed to be added to your savings account. Here are some helpful tips on how you can avoid temptations and be able to save money:
1. Try hard to avoid those things that keep you from saving. If you are fond of buying shoes even if you don't really need them, try very hard to stay away from them. Keep yourself away from shoe stores so that you will not be tempted to buy one.
2. When going to grocery stores. Always bring the exact amount and bring with you a grocery list. If you have limited money in your pocket when in grocery stores, you will be forced to buy only those important things that you need. Preparing a grocery list will also help you get organized and will help you in deciding the things that need to be prioritized.
3. Go to the malls only when needed. Do not go shopping if you do not need anything important to buy. Window-shopping will only tempt you to buy the dress you saw in the boutique even if you don't really need it.
4. Do not bring with you your credit cards all the time. Having a credit card in your pocket will only tempt you to buy things that are not necessary. This will also help you lower your balances and have a good credit score.
5. You may want to save money in the bank or invest in time deposits. You will not be tempted to get money from the bank every time you need cash, if they are placed in a time deposit account.
6. You may also want to consider consulting a financial advisor. There are a lot of programs that offer these services for free. They may be able to help you and give you advice on how you can avoid temptations and save more money.
Most of the time, you may be motivated to save money but there are times when temptations come your way and before you know it, you have already spent the amount that was supposed to be added to your savings account. Here are some helpful tips on how you can avoid temptations and be able to save money:
1. Try hard to avoid those things that keep you from saving. If you are fond of buying shoes even if you don't really need them, try very hard to stay away from them. Keep yourself away from shoe stores so that you will not be tempted to buy one.
2. When going to grocery stores. Always bring the exact amount and bring with you a grocery list. If you have limited money in your pocket when in grocery stores, you will be forced to buy only those important things that you need. Preparing a grocery list will also help you get organized and will help you in deciding the things that need to be prioritized.
3. Go to the malls only when needed. Do not go shopping if you do not need anything important to buy. Window-shopping will only tempt you to buy the dress you saw in the boutique even if you don't really need it.
4. Do not bring with you your credit cards all the time. Having a credit card in your pocket will only tempt you to buy things that are not necessary. This will also help you lower your balances and have a good credit score.
5. You may want to save money in the bank or invest in time deposits. You will not be tempted to get money from the bank every time you need cash, if they are placed in a time deposit account.
6. You may also want to consider consulting a financial advisor. There are a lot of programs that offer these services for free. They may be able to help you and give you advice on how you can avoid temptations and save more money.
“Starting Young: Teaching Teens to Save Money” by Ravinder Tulsiani
Parents mostly complain that teenagers do not listen to them. The opposite is true when it comes to advice regarding 'money matters'. Teens actually welcome their parent’s input about their finances.
In the past few years, teenagers have earned billions of dollars with part-time and summer jobs.
Some have spent most of what they earned, while others saved most or even all of it for a big purchase, or for their college education.
Kids these days are becoming more and more aware of their family's source of income and financial status. They apply these money-spending principles when they venture out on their own.
Thus, it becomes more of a parent’s responsibility to start “training” their teenage kids to use their money wisely.
Here are some ways on how you, as a parent, can teach your teens to save those hard-earned bucks:
1. Lead by example.
With your lifestyle, the children will see how you spend your money.
If they see you allotting a certain amount for a specific household need, they will eventually do the same when they get to earn their own keep.
2. Help your teens get a bank account.
Establishing a bank account under their name would give them an instant financial responsibility.
Sit down and explain to them how to manage their own account, and the “rewards” that they get once they save enough.
Their savings could go to their college tuition, or a big purchase like a car.
Additionally, it gives them a sense of accomplishment once they have saved up, with something concrete to show for it.
You may check out the special benefits that banks offer for teens who open their accounts at such an early age.
3. Construct a “spending plan”.
Once they hear the word 'budget', teens tend to cringe at the mere thought of having to restrict the spending of their money.
Instead, you and your teen son or daughter could build a “spending plan”. This would get them excited, and think of ways on how they can wisely spend their savings.
Also, have them list down their earnings versus their expenses.
Let them know the difference between the items that they need and the luxury items that they want, which they can actually do without.
4. Make a “mock” investment in the stock market.
Make them aware of the options that they have financially.
Casually introduce to them the business part of your daily newspapers and have them make “mock” investments for companies who manufactures products that they like.
Monitor the stocks together and this would give them another option of investing their money in the future.
In the past few years, teenagers have earned billions of dollars with part-time and summer jobs.
Some have spent most of what they earned, while others saved most or even all of it for a big purchase, or for their college education.
Kids these days are becoming more and more aware of their family's source of income and financial status. They apply these money-spending principles when they venture out on their own.
Thus, it becomes more of a parent’s responsibility to start “training” their teenage kids to use their money wisely.
Here are some ways on how you, as a parent, can teach your teens to save those hard-earned bucks:
1. Lead by example.
With your lifestyle, the children will see how you spend your money.
If they see you allotting a certain amount for a specific household need, they will eventually do the same when they get to earn their own keep.
2. Help your teens get a bank account.
Establishing a bank account under their name would give them an instant financial responsibility.
Sit down and explain to them how to manage their own account, and the “rewards” that they get once they save enough.
Their savings could go to their college tuition, or a big purchase like a car.
Additionally, it gives them a sense of accomplishment once they have saved up, with something concrete to show for it.
You may check out the special benefits that banks offer for teens who open their accounts at such an early age.
3. Construct a “spending plan”.
Once they hear the word 'budget', teens tend to cringe at the mere thought of having to restrict the spending of their money.
Instead, you and your teen son or daughter could build a “spending plan”. This would get them excited, and think of ways on how they can wisely spend their savings.
Also, have them list down their earnings versus their expenses.
Let them know the difference between the items that they need and the luxury items that they want, which they can actually do without.
4. Make a “mock” investment in the stock market.
Make them aware of the options that they have financially.
Casually introduce to them the business part of your daily newspapers and have them make “mock” investments for companies who manufactures products that they like.
Monitor the stocks together and this would give them another option of investing their money in the future.
"Essential Money Saving Tips for Students" by Ravinder Tulsiani
It is easy to get caught in the rush of things when you are in college. In the midst of studying, part-time jobs, socializing and extracurricular activities that you have, you are most likely to forget one of the most important things, which is straightening out your finances.
Here are some tips on how you can save money as a student:
1. Plan ahead.
If possible, do this even before you move into your dorm room.
Check if you are eligible for scholarships and other grants before signing up for any form of student loan.
Construct a cash flow. First, where do you expect to get money from? Make a list of your “income”, be it from your parents, your student loan or your part-time job.
Then forecast your expected monthly or weekly expenses for food, books, etc. Once you have set aside a budget, be strict with yourself and stick to it.
You will never know what unexpected expenses would come your way so it is better to have a downfall for financial emergencies.
2. Save on food.
One of the major expenses that you have as a student which you might have ignored when you were still living with your parents is your food allowance. Avoid eating at fast food outlets, as this is most likely to ruin your budget. Pack your lunch and plan your meals as much as you can.
3. Take full advantage of student discounts.
Those ID’s in your wallet are not just for show. Student ID’s and memberships in organizations are honored in several establishments which offer discounts.
Also, patronize a certain establishment regularly and you are bound to get bonus cards for being a loyal customer.
4. Use your cash as much as you can.
Since you already have a draft of the items where you will spend your money, it is easier to monitor your cash flow. Avoid using your debit card when you have cash with you. Use your credit cards or write checks only in emergencies. Having debit cards, credit cards and checks handy might lead you to overspend.
5. Keep yourself busy.
Join clubs according to your field of interest.
Keeping busy will let your mind wander and help you stay away from things that you are likely to spend money on when you get bored. Examples of these are snacks, movie tickets or game rentals.
You will be surprised at the amount of money that you will actually save by spending less on luxury items, following your budget plan and saving for financial emergencies that you are most likely to get as a college student.
Here are some tips on how you can save money as a student:
1. Plan ahead.
If possible, do this even before you move into your dorm room.
Check if you are eligible for scholarships and other grants before signing up for any form of student loan.
Construct a cash flow. First, where do you expect to get money from? Make a list of your “income”, be it from your parents, your student loan or your part-time job.
Then forecast your expected monthly or weekly expenses for food, books, etc. Once you have set aside a budget, be strict with yourself and stick to it.
You will never know what unexpected expenses would come your way so it is better to have a downfall for financial emergencies.
2. Save on food.
One of the major expenses that you have as a student which you might have ignored when you were still living with your parents is your food allowance. Avoid eating at fast food outlets, as this is most likely to ruin your budget. Pack your lunch and plan your meals as much as you can.
3. Take full advantage of student discounts.
Those ID’s in your wallet are not just for show. Student ID’s and memberships in organizations are honored in several establishments which offer discounts.
Also, patronize a certain establishment regularly and you are bound to get bonus cards for being a loyal customer.
4. Use your cash as much as you can.
Since you already have a draft of the items where you will spend your money, it is easier to monitor your cash flow. Avoid using your debit card when you have cash with you. Use your credit cards or write checks only in emergencies. Having debit cards, credit cards and checks handy might lead you to overspend.
5. Keep yourself busy.
Join clubs according to your field of interest.
Keeping busy will let your mind wander and help you stay away from things that you are likely to spend money on when you get bored. Examples of these are snacks, movie tickets or game rentals.
You will be surprised at the amount of money that you will actually save by spending less on luxury items, following your budget plan and saving for financial emergencies that you are most likely to get as a college student.
Setting Up A Family Budget by Ravinder Tulsiani
For some, the idea of a budget is often a blur. It is frustrating to see how hard it is to do a budget and realizing that with one wrong purchase, you can actually ruin the entire thing. And this has been a perennial headache for most homemakers.
It is about time to overhaul the way people look at budgeting. It can actually be a great way to keep track of your family's expenditures and help you evaluate the things that you spend the lion's share of the family's earnings on.
What is a budget? A budget is a tool for handling your finances by controlling the family's expenditures in a way that money is enough for paying up bills, and still ensuring that savings are set aside for future expenses - vacations, or children's education, or even for retirement.
Try these simple steps in preparing a no fret family budget, and see the benefits of intelligent spending.
1. Gather three months of your pay stubs and get your average monthly earnings.
2. Get out three months of your monthly bills. Do this for the fixed expenses like the rent, phone bill, car payments and other loans that come monthly. Add them up and get the average. Do the same for other expenses like groceries, and credit card bills.
3. Evaluate the results of your computations. Looking at your average monthly earnings against your monthly fixed expenses and other monthly expenses, think of some ways to economize. Cut back on some items that are somehow unnecessary.
4. Knowing the facts of your income and expenses, develop a family budget and try to stick to this monthly budget.
5. Now that you have a monthly budget, set up a savings account. Save up by making regular deposits to this account.
6. Keep track of this monthly family budget just to see if it is working for you. Try to fine-tune the "rough edges" of this budget as you go along.
7. If you can get hold of a personal budgeting software or spreadsheet application to keep record of your budget, the better. This will make organizing your expenses very easy.
These are the basic steps in developing and implementing a no fret, easy to stick to monthly family budget. Of course each family has diverse needs and wants. You have the freedom to develop your own monthly family budget, depending on your family’s financial background and needs. No matter how you do it, just focus on the end result, which is building a savings that leads to a bright and financially stable future for your family.
It is about time to overhaul the way people look at budgeting. It can actually be a great way to keep track of your family's expenditures and help you evaluate the things that you spend the lion's share of the family's earnings on.
What is a budget? A budget is a tool for handling your finances by controlling the family's expenditures in a way that money is enough for paying up bills, and still ensuring that savings are set aside for future expenses - vacations, or children's education, or even for retirement.
Try these simple steps in preparing a no fret family budget, and see the benefits of intelligent spending.
1. Gather three months of your pay stubs and get your average monthly earnings.
2. Get out three months of your monthly bills. Do this for the fixed expenses like the rent, phone bill, car payments and other loans that come monthly. Add them up and get the average. Do the same for other expenses like groceries, and credit card bills.
3. Evaluate the results of your computations. Looking at your average monthly earnings against your monthly fixed expenses and other monthly expenses, think of some ways to economize. Cut back on some items that are somehow unnecessary.
4. Knowing the facts of your income and expenses, develop a family budget and try to stick to this monthly budget.
5. Now that you have a monthly budget, set up a savings account. Save up by making regular deposits to this account.
6. Keep track of this monthly family budget just to see if it is working for you. Try to fine-tune the "rough edges" of this budget as you go along.
7. If you can get hold of a personal budgeting software or spreadsheet application to keep record of your budget, the better. This will make organizing your expenses very easy.
These are the basic steps in developing and implementing a no fret, easy to stick to monthly family budget. Of course each family has diverse needs and wants. You have the freedom to develop your own monthly family budget, depending on your family’s financial background and needs. No matter how you do it, just focus on the end result, which is building a savings that leads to a bright and financially stable future for your family.
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