So many of the people i speak to just cant find the motervation to budget but they are sick of never having any money and sick of debt or they simple refuse to look at it because they are scarred to know how bad it really is. Now that's counterproductive. At least is you know we can do something about it.
You need to be brutally honest with yourself in this. What is your monthly income? as it stand now not as you'd like it to be. this should include all money coming into your household. Your salary, your partners, a Pension you may receive, returns on an investment, interest on accounts, everything. You got it? Good.
Okay next we need to work out your expenses, most people arn't exactly sure of there monthly expenses and they will vary slightly month to month. Always over budget slightly if its not a fixed expense, better to have money left over for that bill or another then to have to pull a extra amount that you haven't budgeted for.
Saving as far as you are concerned are an expense they come out before you have anything 'left over'. What you do have left over you can either add to your saving to give them a boost or keep it to play with.
Saturday, 17 September 2011
Is your money controlling you?
Are you controlling your money or is it controlling you?
Fact: Most people have to admit at some point in there lives that the later of the two and thats not a great place to be.
All you need to do is employ some simple tactics to start a u-turn on your road to debt, get started saving and know your finances. Get back in control of your money. Your probably thinking how can the words simple and budgeting possibly exist in the same sentence. Don't stress budgeting is very simple we are the ones that make it hard on ourselves by using basic budgeting method's and planing for the long term as well as the short term. What we want to do is tailor a solution that is specific to you but flexible so as your life changes so dose your budget.
Back to the basic's
Always spend less then you earn. seems pretty simple but a lot of people either choose to ignore that advice or there expenses simple just keep adding up. Lets face it, its human nature to want more but living beyond your means isn't sustainable. You might get buy for a year or even two but it eventually catches up with you and the hole you dig yourself into can sometimes be insurmountably.
Avoid unsecured debt's
It's unrealistic to think you can make it threw life with no debt what so ever and honestly some debts are good. What! Don't shun me yet. Some debts can have a positive effect on your overall financial health because they help your secure capital assets like your home. However the type of debt's we want to avoid or keep to a minimum are, credit card debts, pay day loans, high interest unsecured loans and others of the like. i can pretty much guarantee they will keep your personal budgets from balancing.
Be Prepared.
I know I've said this before and ill say it again. Be prepared for anything, life's ever changing and we both know when something something starts going right then there will be something to throw a spanner in the works.
What you need is what my Nan calls a rainy day fund. Money you save and don't touch unless there is an emergency or unexpected expense. I sometimes add a little extra and buy a big ticket item but there must alway be enough there to cover me is anything goes wrong. For example, i just bought my partner and i two brand new laptops, nice and expensive ones, now even after taking those out of my account i was still left with 4500 dollars of rainy day money.
Make the Most of what you Have
Again this means living within your financial means and keep in mind your long term financial goals, other wise is like just having the money sitting there. Why would you work so hard for your money just for that, instead put your money to use. My suggestion is pipelines, but ill cover that off in another post.
Now budgeting has the tendancy to uncover some unwelcome truths, that can make it a little scary or painful. Unfortunatly you'll just have to deal with it, a budget is only as good as the info its based on. So be honest with yourselves and paint a clear picture of both your income and expenses. Simple ways to do that include keeping a expense journal, keeping a detailed record of all your expenses gives you a look at where you can cut back, or collecting your receipts. They are bith great ways to work out where all your money goes.
Till next time keep these in mind they help,
Emily,
Fact: Most people have to admit at some point in there lives that the later of the two and thats not a great place to be.
- Are you being forced deeper into debt?
- Having to make unwise financial decisions, ie. pay day loans, pawn brokers?
- Inability to save?
- Conflict in your relationships? Stressed out?
All you need to do is employ some simple tactics to start a u-turn on your road to debt, get started saving and know your finances. Get back in control of your money. Your probably thinking how can the words simple and budgeting possibly exist in the same sentence. Don't stress budgeting is very simple we are the ones that make it hard on ourselves by using basic budgeting method's and planing for the long term as well as the short term. What we want to do is tailor a solution that is specific to you but flexible so as your life changes so dose your budget.
Back to the basic's
Always spend less then you earn. seems pretty simple but a lot of people either choose to ignore that advice or there expenses simple just keep adding up. Lets face it, its human nature to want more but living beyond your means isn't sustainable. You might get buy for a year or even two but it eventually catches up with you and the hole you dig yourself into can sometimes be insurmountably.
Avoid unsecured debt's
It's unrealistic to think you can make it threw life with no debt what so ever and honestly some debts are good. What! Don't shun me yet. Some debts can have a positive effect on your overall financial health because they help your secure capital assets like your home. However the type of debt's we want to avoid or keep to a minimum are, credit card debts, pay day loans, high interest unsecured loans and others of the like. i can pretty much guarantee they will keep your personal budgets from balancing.
Be Prepared.
I know I've said this before and ill say it again. Be prepared for anything, life's ever changing and we both know when something something starts going right then there will be something to throw a spanner in the works.
What you need is what my Nan calls a rainy day fund. Money you save and don't touch unless there is an emergency or unexpected expense. I sometimes add a little extra and buy a big ticket item but there must alway be enough there to cover me is anything goes wrong. For example, i just bought my partner and i two brand new laptops, nice and expensive ones, now even after taking those out of my account i was still left with 4500 dollars of rainy day money.
Make the Most of what you Have
Again this means living within your financial means and keep in mind your long term financial goals, other wise is like just having the money sitting there. Why would you work so hard for your money just for that, instead put your money to use. My suggestion is pipelines, but ill cover that off in another post.
Now budgeting has the tendancy to uncover some unwelcome truths, that can make it a little scary or painful. Unfortunatly you'll just have to deal with it, a budget is only as good as the info its based on. So be honest with yourselves and paint a clear picture of both your income and expenses. Simple ways to do that include keeping a expense journal, keeping a detailed record of all your expenses gives you a look at where you can cut back, or collecting your receipts. They are bith great ways to work out where all your money goes.
Till next time keep these in mind they help,
Emily,
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