Posts Tagged ‘Budget’
Retirement Back up Plans
Posted by admin | Filed under Retirement Planning
I was at a restaurant recently, when I overheard a lady speaking with her husband, (perhaps lover, significant other) about being scared of the future, and retirement plans.
What has happened in the past year, and in the past 10 years, with many people losing much of their savings, as affected profoundly many people, but especially those who are in their 40’s and 50’s.
As someone who belongs to that group, one of the best strategies, is to have backup plans. Hopefully working, into your 60’s is not plan B or plan C.
Personally, I’ve looked at living where the cost is cheaper. In the last year, I have visited Mexico and Ecuador, and both have a large expat community. I’ve spoken at large with Frank, formerly from Vermont who runs the beautiful Otavalo, Ecuador hotel Ali Shungu someone who made the move over 30 years ago to a life he preferred.
He started by importing into the US articles from Ecuador, and slowly making the move down permanently after spending months at a time for the first 10 years or so.
Living abroad is perhaps not an option for many, but if your circumstances permit it, your money will definitely go a longer way.
Pratical Advice on Making Ends Meet
Posted by admin | Filed under Budget, Credit Cards, Found Money, Reduce Debt
Half of all Americans live on less than $48,000 a year. That total, which is the median income level, is derived form U.S. Census figures from 2006. There is a lot of advice out there on cutting back on spending. But if you fall into this category, which simple math tells me 1 of 2 who read this will, chances are that cutting back on “going out to dinner” advice will not do. Unless of course they mean McDonald’s or Subway.
If your situation is that have more money going out on a montly basis than coming in, what do you do?
There two things you could! Three if you count doing nothing.
Make More Money or Spend Less.
Make More Money
First figure out what your shortfall is each month. Let’s say you need an extra $500 a month to loosen the collar. Some obvious ideas are are overtime at work, a side job, a simple side business, sell what you no longer need on Ebay, etc.
Spend Less Money
It’s very hard cutting back on certain luxuries we have grown accustomed, but sometime it’s necessary if only temporarily. Look closely at what goes out a make hard decisions. Do you need a $40 monthly gym membership or maybe you can exercise outside for free. Now this may be sacrilegious to some but if you’re in deep, what about your cable bill? Do you really need it? How much are you paying in credit card interest rates, moving debt to lower interest cards will lower your monthly payments, if onyl temporarily.
These are just a few ideas to kick start your brainstorming session. Why don’t you shut off the computer and take a yellow pad, with your favorite writing pen ( Very important, this makes a differnce in coming up with ideas), go to a quite place that’s comfotable and think of different wayss ot make some extra money or spend less money. Write everytihng you can down. Don’t worry about how stupid it may seem or that this will take along time to implement. You just want to write at this stage.
Here are some questions to hep you start your personal brainstorming session.
- What are you passionate about?
- What skills do you possess? Think hard, everyone has skills that are needed by someone, just think!
- What needs are out there, where you live, that aren’t being filled?
- Who do you know that you can barter a service? ( Bartering services can be sold)
- Who do you know that can help you locate a part or full time job, or business? (A client of mine started his business by being available to helping out a customer he was caddying. Now he provides a unique service for clients driving there.)
You can probably save or make a few hundred extra each month without too much pain, you just have to think about it objectively, which isn’t always the easiest thing to do.
Personal Debt Relief Will Be Harder to Get Soon
Posted by admin | Filed under Budget, Credit Cards, Reduce Debt
Unless you have been hiding under a rock, you’ve heard about the Banking Crisis, “The Banking Bailout” or the “700 Billion Gambit”. What most people do not seem to realize, is that because banks are tightening up on their money, and their lending guidelines, whether it be home loans, auto loans, home equity loans, or yes, unsecured loans such as credit cards.
This is a huge problem to every American, whether or not you think you are directly affected or not. We can all probably put off selling or buying a house, selling or buying a car, but what if we already have credit card debt. The average American with at least 1 credit card owes more than $8000 in credit card debt.
Here are two scenarios that could get people in trouble.
- If you are credit card surfer, those that shift debt to low or no interest: those offers may dry up, causing minimum payments to go up.
- If you carry high debt to credit limit: debt limits lowered, means high debt ratio > lower FICO > higher interest rate.
In scenario number 1, you want to make sure you have a back-up plan. Do you have other banks offering you low interest rates now! Now might be a good time to shift, because they may not be available. What is your debt to credit limit per card? Ideally you want to have no more than 80% of your credit limit per card and the lower the better overall.
In scenario 2, it may pay (no pun intended) to get more credit now, so that if it your limits get cut back, then you are still below the magical 80% ratio of debt to credit limit.
With the Credit Crisis, you won’t find Credit Card companies with 0% interest and zero fees any more but here is one that is worth checking out.
Discover More offers 0% interest for 12 months, with a maximum Balance Transfer fee of $75.
Why Should You Have A Family Budget?
Posted by admin | Filed under Budget, Features
“The average family exists only on paper and its average budget is a fiction, invented by statisticians for the convenience of statisticians.”
Sylvia Porter
Unlike the quote provided above, seemingly reflective of general opinion on family budgets today, we will attempt to take a much more positive approach to budgeting, as a family oriented, user-friendly, financial management and planning tool and life-enabler.
However, when reflecting on family budgeting and inquiring as to why not more families are actually using it, it becomes self-evident that similar skepticism runs rampant and deep in reality and society, even globally so.
Once you start probing family budgets, expending time and energy researching the subject in-depth, it becomes quite clear, that most families are caught in a vicious, almost never-ending cycle of “What comes in must go out.”
Most families might feel that budgeting is a futile effort, unnecessarily burdening them with thoughts and ways, to go broke methodically and slowly, without the creature comforts and indulgences of our human modern-day society.
Others might voice that they feel as if they are merely throwing money away, in a never-ending and dizzying spiral of spend, spend, spend. People are getting deeper and deeper into debt, no matter how hard they try to get out of it. Questions are then raised : How do we stop these courses of action? How do we change the thinking around family fiscal discipline?
Put simply, in “How to set up a Family Budget”, we focus in on how to empower families to set up better, more realistic budgets, stick to them and celebrate their successes (and learn from their failures!)
Families eventually do have a monthly surplus, see their savings start to grow, consolidate their debt, set aside discretionary funds and personal allowances, build their wealth and become more aware of their pro-active involvement and responsibility regarding their lives and finances. This is when excitement builds and fundamental thought patters as well as spending attitudes are changed.
Budgeting is seen as an accurate measurement of success when significant behavioral transformation is taking place on the landscape of the family budget, spending habits and financial patterns we observe over time!
Do you ever feel that you do not have enough cash at the end of the month to pay bills, buy necessities of life? Are you barely making a dent in your credit card debt balance, no matter how hard you try?
Here is a reality check for all of us: if we choose to spend it, it is gone for good. We cannot spend it on anything else. Are you perhaps worried about a nest egg for your golden years or savings for early retirement? Then you have arrived at a source that can provide some prudent tips on how to start, finish, implement, stick to, revise and refine a family budget.
The family budget is a dynamic process, even more so than a mere static work-product, result, process-outcome or document. It will, can and should change over time. It becomes a barometer of a family’s fiscal circumstance, resources and health.
Maybe budgeting is not as much about reflecting on what you cannot have, but more about thoughts on how to stretch, invest and spend your earned dollars more wisely. In short, it is about making your money going further.
This quick-reference how-to guide was developed to assist you with setting up your own personal, household and family budget, to help you with all of the above and more!
A couple of general money-savings will also be provided in these pages. There are also thoughts and spending patterns that need to change, in order to become fiscally more disciplined and many techniques, attitudes, habitual behaviors that we need to un-earth, evaluate and possibly change, before you even start budgeting.
For example, being a bargain hunter looking for good buys, cutting down on careless spending, being on the lookout for careless credit card spending and letting the person who handles money best in your household actually take care of it, are all good examples of what we mean.
For most households, a budget is no more than a spending plan. Any spending plan can help you see where your money is going. It fits your spending to your income. It reflects how we get the things we want and need most, while being ready and prepared for bills we must pay every month.
For most families it is simply about making a budget you can live with and stick to easily. It is not a difficult exercise, but one most people fear, avoid or dread because of the unknown and perceived complexity of it (sometimes wrongfully so!).
Part of the goal of this guide is to demystify family budgeting and highlight an easy systematic process to setting up a quality family budget.
Many things actually drive our expenditure. We choose to spend our money on things we value, need, prefer or consciously choose. For some it is clothes, for others it might be something as simple as taking that yearly vacation.
Whether you are making financial decisions for yourself or your household, you might have to make some serious choices and adjustments regarding your financial freedom and situation.
“How to Set up a Family Budget”, is a quick-reference, easy, how-to guide, meant to take you through the typical, who, why, when, what, where and how questions typically asked when considering fiscal planning for the household and or budgeting in general for your family need, means and circumstance, now and for the future.
Budgeting is not just about restricting spending and living a cheapskate life. It is about insights, wisdom, informed decisions, action and sustained discipline when it comes to your household financials.
This guide will invite you to learn more in these pages about systematic budgeting. It focuses on practical application and zooms in to apply these “best practice suggestions” in your own home. It empowers you to put together a dynamic, financial plan that suits your pocketbook, means and circumstance.
Financially speaking, assess quickly where you think you and your family are today.
- What kind of a picture do you have?
- Could you come up with something?
- Did you have the data and numbers you needed?
- Would you be able to plan for where you want to be and start living your life today as a fiscally sound and disciplined family with the information you have at your disposal at present?
Money makes the world go round! It is no secret that some of us have more, some have less. We deal with our own personal finances and cash management distinctly differently.
Households have varying needs, means and circumstance. Our money-management skills are also at different levels, as is our debt and savings!
Budgeting has to do with most of these perspectives and reflections.
The purpose and goal of family budgeting is:
- financial situational analysis and informed awareness,
- (ii) cutting cost,
- (iii) gaining control or curbing spending and
- (iv) Starting to save, building up wealth and liquid assets over time.
There are many phases and steps to go through when creating a budget.
If you are looking for ways to manage your money better, making it reach and stretch further, and providing you with financial security and a more solid future, then you have come to the right place.
In this brief introduction on family budgets, we have already introduced our first couple of key questions
- Why an e-book or how-to guide on setting up a family budget?
- Why would or do you need a family budget?
- What is the business case for and rationale behind family budgeting?
- What are the benefits and advantages of a family budget?
We elaborate a little more below. For most people, a family budget is the equivalent of a simplistic process: money is earned and comes in; money is spent and moves out!
It is a fluid, easy-flow, one-directional, cash management process. It is driven by daily life, a spending-orientation, or no plan at all!
For most families, income is also fixed and outflow typically increases over time, as the needs of the family fluctuates and changes. Loading up on debt is also very typical for the majority of our families. If this sounds very much like a vicious circle, it is. Most families are caught up in it and constantly battle to get out.
Mostly, we think that we wisely spend our money on necessities like food and clothing, gas and household or family needs, but can rarely put a finger on where the money actually goes, let alone produce a budget!
A good place to start is to monitor these expenses.
Take stock of your fiscal situation. Start with assessing where exactly you are in your financial life and circumstance. Most of us think we know, but we really do not.
That is, until we take the time to actually list, study and analyze the situation. Figure out what your financial worth is, look at all financial goals, and set a timeline for reaching them. Does this sound like an action plan? Where do you start?
A good suggestion is your bank statements, tax return and recent current credit report – a financial asset statement if you will -and an overview of the current situation.
The premise is simple: you can not get to arrive where you want to be if you do not know where you are today, what it will take to get where you need to be and how to get there.
A well thought out, planned and realistic budget will serve as a roadmap to get you there. It is a financial tool facilitating your financial dreams, goals and aspirations, making them become a reality. Budgeting will enable you to actually reach your financial targets and set goals.