Archive for the ‘budgeting tips’ Category

The Advantages of Home Budgeting

Destroying the Myth

Creating a home budgeting plan does not have to be tedious.  In actual practice, it should be the opposite.   Done correctly, it will arrange things so you can better enjoy life. A household budget will make it so you are not worried about finacnes or your obligations so you be able to focus more on things in life you like to do.

Control Your Spending

If you want to have a successful home budget, part of it must include spending controls.  The first step in this as discussed in the Budgeting Tips section, is to find out how much you are currently spending.  If you have not read that article, do so now.   

Once you have done that step and totaled everything, you can compare it to your monthly income.  Here there are only two outcomes, your income exceeds your spending or your spending exceeds you income.  If it is the latter, you are going to have to adjust your spending.

If it is the former,  you are doing well controlling your spending.

A Safe Limit

Use your home budgeting plan as a way to build a safe limits. When you do, you will discover that you are safe from financial pressures about how you are going to pay the bills, plan for your retirement, pay for your children’s college and much more. This limit keeps you secure from the worry over bills and debts.

It not only makes you feel secure, but over time, will give you the chance to live be financially free. I know you like the sound of that, don’t you? This makes your spending guide a tool and not a chore.   A powerful weapon to building a better life, one with security and peace of mind.

Home budgeting enbles you to get your mortgage paid off early.  It pays off credit card debt and gives you intellignet ways to save money rather than wasting it on interest and fees. Home budgeting creates a secure future for your children and allows you to fund that retirement account, so that your retirment years are enjoyed, rather than filled with worried and regret.

It should be clear by now that your personal spending plan is not destined to be some grinding task. Instead, home budgeting is a skilled discipline that is honed to create a secure financial future for you and your family.

Home Budgeting in Troubled Times – 5 Simple Keys to Budgeting Success

Most people don’t enjoy doing, but retirement planners and financial advisors will inform you that home budgeting is one of the cornerstones to financial freedom. Over and over, when individuals are asked about their finances, as to what would most help their financial situation, the answer is extra income each year. This seems to be accurate across all brackets of wage earners.

I find this very compelling because it indicates, in many situations, the problem lies with home budgeting not income earning. Budgeting money appears to be the problem or else you would not have households earning $50K or $75K or $100K, all saying they need an extra $25K a year to solve their home budgeting problems. If the earnings where actually the issue then the higher bracket earner would not have issues but I have learned from experience, home budgeting problems exists amongst all wage levels.

Here are 5 simple steps one should follow to get on the road to improve their home budgeting process.

1. Awareness – I have found in working with others that this is the number one block to successful home budgeting. Most people simple do not track accurately what they are spending. For the next 30 days, write down everything you and the rest of the family are spending money on.

2. Prioritize – Next, once you see what you are spending money on you need to evaluate whether that purchase was a need or want. It will be eye opening to many to find out what they have been spending money on.

3. Goal Setting – Be realistic in what you cutback on and have an end goal in mind. Household budgeting should not be a painful practice where all the fun is taken out of life. It is merely a way to prioritize your wants so that you can get the most out of your life. Are you doing it to retire sooner, reduce debt, buy a home, etc…?

4. Monitoring and Tracking Results – Once you have started this process you will find it far easier to stick with, if you have the tools to track and follow how you are doing. There are many budgeting software programs and spreadsheets available at little to no cost.

5. Get Your Family Involved – Unless you are single, having the rest of the “team” onboard is essential if you want to achieve long term results. It is never too early for kids to start to learn about money management.

Start today with #1 above and get on the track to financial independence.

Home Budgeting Tip #1

I am surprised at how many people ignore the easiest step in budgeting, that is to determine what you are currently spending.  In our society today, we are constantly bombarded with things to buy and too many people do buy on an impulse basis.  Then before you know it, that impulse buy has become a regular purchase.  The next thing you know, you are spending more than you make.

So if you want to start to regain control of your household budget, do this simple but effective excerise:

For the next 30 days, write down every penny you spend and what you spent it on.  Like this:

3/4/10  Starbucks coffee – $3.57

3/4/10 Exxon Gas – $32.75

Do this everyday for 30 days and you will have an eye opening experience. 

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