Budget to survive
The word budget is probably a household word in today’s hard economic times. I know it is in my house! If you don’t have a budget for your household finances, take a look at your spending and you will see that money is being spent unwisely.
A budget will help one be more aware of where money goes and where it should go. It just makes you be more aware of your finances and if a budget is actually prepared, you would realize that you really do not have the money to spend on what you are currently spending it on, especially if it’s not on any of your household finances or whatever credit card bills you may have.
By not having a budget, you may over spend, not having enough money to pay what needs to be paid (bills). If you pay your bills first and see how much is left over, you will be more realistic as to what you can and cannot do with the extra money (if there is any).
money, money, money…
Money is really getting the intentions of everyone. It was even considered the root of all evil. Money was even becoming one of the most important need of anyone. Of course how one will able to eat, study and live without having any single cent? Aside from the fact that money is being used in our daily expenses there are even people says that money will even decide your fate and happiness. No matter what someone believes in about money. Certainly, money is really essential to daily life. No one will ever survive in this kind of material world without having money. Money is even the reasons why online money making sites were evolving and beginning to conquer the mind of everyone. But of all this things one will always crave to earn and have money every minute and every second because of the growing prices of commodities specially if one will not learn how to save little of his income.
Hosting a party within the Budget
I am planning to have a baby shower this coming December. I will have 20 to 30 guests. My theme is blue and brown color. My husband plan to give me 250dollars as a budget for my shower party. But I want to spend only half the amount. But how am I gonna do that? Plan wisely. Make a list of what to do and list the name of the suppliers. Do canvassing and have a quotations on each suppliers will do. Be creative and include customize decorations and invitations as well. In invitations, you can create your own or make a design using computer software and have it print. Another suggestions is to send invites via email to your friends who live far away from you. It can save courier cost or transportation fare if you plan to send it personally. For foods, you can create unconventional menu. Just make sure that it is your speacialty or the recipe is already tested. For decorations, you can buy balloons at cheaper price. Buy also the machine used to inflate the balloon, I think it’s only cost less than 2dollars. You can re-used them on your next party in the future. Making a party is fun. In this time of crisis, we can still enjoy it by planning it wisely.
System in budgeting
In order to come up with a proper budgeting scheme, you need to include to have a system in implementing it. Proper organization is the key. Make a list to be organize. List down the necessities like groceries and utilities. This is the important things that you should prioritize first. Next is buying new clothes and shoes. If there’s a budget in buying new things but not that important, then go on. This can be gadgets or vices. But make sure to include in the list the extra for emergencies. We’ll never know when this will happen.Just be ready to have it so that there will be no problem when that time comes. When you have this system it will be easier for you to divide your finances. You can device your own at your own convenience but always allot something for emergency purposes.
How to clear your credit card.
Turn all income and saving to reduce debts. As soon as your income come, you have to pay from 90% of your salary, 10% is saving or living cost( if you want to). If you pay 100% of your income to credit card, you can use credit card for daily living. The benefit of this thing is all credit cards will give you some days of interest free. Therefore, you have to clear the old credit to reduce the interest fees, and the new credit you still have some days before the bank start counting the interests. By this way you will clear your credit card debts faster and you can save some buck from the interests.
Fix your money in 3 simple steps.
1. Write down all your expenses as they occur for a month to find out what minimum amount you need for living per month. Now you can keep that amount in your current account every month.
2. Turn savings into debt reduction. Instead of saving you should pay your debt. The money that you save from the debt’s interest will be bigger that the money from your saving account’s interest.
3. Reduce your credit card. If you can’t afford, do not buy! Save the credit card for large amount of spending or emergency case.
How to Save?
It is really hard to save money due to the continues price increase of our day to day expenses. Just for a days gasoline will cost you a big amount and add to that your daily meals. So saving a little money is being a problem by the people nowadays. But there is one person who has a good idea on how to save a little money from our salary. His name was Mr Francisco J. Colayco. Actually he has several book on how to save money one was Wealth Within Your Reach.
According to his book the best way to save is to have this formula: Salary-Savings=Expenses
He also says that one should atleast set aside his 20% of his salary or even 5% if you can’t delegate 20% as your savings. It is also in his book that we should make our savings grow even we are still working.
REading his book really inspire me save a little portion of my income here on the internet and I’m hoping that with this way I can put up my own business. I’m sure if everyone will just follow his advices all of us will cope up in the so called money crisis.
Gaming and Finances
From the awesome Gamers With Jobs:
I am a miser. It is well documented that I do not like to watch numbers decrease; it sparks an uncomfortable dissonance in my progressive world view. I dread the presence of naught where once there was quantity, and so that makes me the kind of person who will put off paying for the heating bill in the middle of a Minnesota cold snap, just so I can artificially inflate my bank account with an impending paycheck before acquiescing to necessary impulses such as not dying of exposure. This stubborn numerical protectionism extends through to almost every corner of my life, save one.When it comes to video games, I will buy virtually anything.
So true! What will you scrimp and save to buy?
Via Will and the Lack Thereof | Gamers With Jobs
Personal Financial Planning: Excellent Tool for Individual Money Management
Personal financial planning is a part of managing your income according to your financial management. Nowadays, it is one of the most important aspects of any individual life. Everyone positively thinks about personal financial planning directly or indirectly.
Personal financial planning is an instrument to carry out some principles of finance regarding money matters of an individual or family. It positively assists you in keeping all records of your earning, spending and saving. It requires a little sensible approach from your side to be successful in your money management. It will not happen overnight. Because individual financial planning is a continuous process. It has flexibility to change with time.
To be good in your financial management, you need to know basic information about it. Planing is the key factor of your financial management. It requires daily observation and reassessment of your income, spending and savings. Below are few points which can be useful for your financial planning.
1. Current financial position - Know your current financial position. Consider you’re all income sources, spending and savings. This includes calculation of your income sources and expenses. Calculation of income sources includes your post tax income, spouse income, investment income and any other. Calculation of expense includes spending on grocery, medical, laundry, house, lifestyle etc. Thus, you should consider fixed expenses which are house rent, children fees, loan repayment, insurance premium, etc. It will assist you in drawing out an outline of your money management planning.
2. Setting financial goals - After reviewing your financial position, figure out your financial goals. Remember, you should draw out goals within your income limits. Your goals should be achievable. Consider how much you are going to earn in the period of completing your goals. This will aid you not to fix your financial goals blindly.
3. Action plan - Create an action plan to achieve your goals. Brainstorm possible ways which are suitable to your plan. While making an action plan, you should not neglect above two points. Make more than one action plans. Those should be drawn out with the help of your financial facts. Choose that action plan which will positively help to your success.
4. Plan implementation - Now it is working time on your action plan. You have selected the best plan which guarantees your maximum success. Be flexible about your plan. You may be required to make slightly changes if there is any necessary demand of time. Carefully made a plan should be carefully followed.
5. Progress observation - Keep daily observation on your plan progress. Because, times and circumstances change. That time you may not be able to work on your action plan. Review your progress and do adjustment as well as changes. If the action plan is doing considerable progress you want, then go ahead with it.
Personal financial planing is an excellent tool to control on your financial life. However, it needs to bring it in reality with true commitment. Then you will get true results of personal financial planning.
Whole Life Insurance and Retirement
Life insurance is one of good ways to fund your retirement. We all want to live life after retirement with enough financial resources. No one wants to be financial dependent on others after retirement. Life insurance provides you an excellent opportunity to make advance financial provisions.
Whole life insurance is one of the types of life insurance. It protects till your death. Cash Value is one of the advantages of whole life insurance. It continues to build more and more until you pay your premiums. Moreover, cash value is tax-deferred.
You can use your policy’s cash value to fund retirement. Pay premiums on timely basis. Then your cash will increase more and more. You can check how much cash value is there. You may borrow some amount from cash value and invest wherever you want. But, you should consider investment types carefully. Because you are going to create financial resources, which will make you financially independent after retirement.