Budgeting your monthly expenses in order to get the greatest return on your income (and perhaps, even put aside some for saving!) doesn’t have to be extremely hard.
Various budgeting programs are available for use. Money management programs provide you with a usual package that allows you to enter your cash inflows and outflows, categorizes your expenditures, and at times, presents to you analysis of your spending patterns. Most of these programs also allow you to input the various payments you have to make monthly, and subsequently track if you have paid your dues on time. Furthermore, some programs even offer you a tax form draft that will help you make sure that you are not missing out on any dues or any deductibles, for that matter.
Another budgeting tool that you can utilize are coupons. Certain stores and magazines give away coupons that you can use to get discounts on various products. Should there be a need to purchase a particular product for which you have a coupon, you will save a fraction of the regular purchase price.
Keeping lists on hand —whether on a piece of paper, on your cellular phone, or on your personal digital assistant (PDA) -- will help you maintain focus on what you have to buy, and in effect, keep track of the purchases that you do make. A classic example is your regular grocery trip. Prior to making the trip, plan out the week’s entire menu and identify what food items and materials you need to purchase that are unavailable in your pantry. Then, make a list of other household items that you’ve run out of (or are eventually going to run out of before you can make the next trip to the grocery). Armed with these lists, you can go to the grocery and know exactly where to go and what you’re going to buy. Without these lists, you will walk idly along aisles, and will likely pick up various food items that you won’t likely need in the immediate future, or already have at home.
A filing system is perhaps one of the best budgeting tools you can have in your home. With simple, labeled file folders, you can put together your bills, your receipts, and whatever bank documents are issued to you when you save or pay. By putting together your bills, your credit card receipts, and the like, you are able to keep track of how much you owe and when your payments are due. For those of you who use the computer regularly, it is a good idea to build a spreadsheet to keep track of your weekly or monthly spending.
Effective budgeting tools are those that best address your needs as a consumer. Create your own budgeting tool or find a program to do it for you—just make sure it suits your lifestyle.
Saturday, January 26, 2008
Friday, January 25, 2008
Sensible Spending Habits For Financial Planning
To get on the right path in terms of effectively planning for your financial future, you have to adopt a lifestyle that will enable to save an adequate amount on a consistent basis, at least initially, so that you will have the resources to allocate to an investment plan.
Over the longer term, if you are guided by the right principles and reasons in deciding to adopt what I would call a financially sensible lifestyle, the day will surely come when you will look back with pride and satisfaction on the rich rewards that will accrue to you.
To start off, try out the following tips to see if you can take them on board; if you find them to be practicable, then incorporate them into your lifestyle.
1. Eating Out - Having gimmicks with friends on a Friday night is fine if you do it once in a while. But this can be expensive if you add them up at the end of the month.
2. Clothing - Naturally, if you are the kind of person who adores signature and designer clothes, do not expect that there will be something left of your take home pay. Instead of being trendy, wear clothes that can easily be matched with your other clothes.
3. Own Home - If you are planning to move out and find a place to settle, do not be overwhelmed by the excitement, instead be practical. As a start, buy a smaller house or try other ways like rent-to-own, do-it-yourself arrangements, and owner-financing.
4. Buying Your Own Car - Shy away from sports cars or SUVs. Just stick to your purpose for buying a car, which is to transport you anywhere you need to go. Check out also program cars like a new car warranty. Maybe this is not just the best time to replace your car with a new one.
5. Shopping for Groceries - As much as possible do not go with items that are branded. Choose non-brands or "house brands" and try looking for items on the highest or lowest shelves for best prices. Grab the opportunity and shop during sales or use coupons.
6. Family Out - There are inexpensive ways to bond with your family and be entertained like going to libraries, local parks, malling, picnics, visit friends and local church.
7. Buying School Supplies - Stock school supplies at home and do not buy anything fancy.
8. Be contented with what you have and try to live within what you earn.
9. Plan your Child’s College Education - Teach them the ways to be independent and self-supporting by encouraging them to apply for scholarships and “on campus jobs”.
10. Be Aware of your Financial Limitations
11. Avoid Financial Pitfalls by Planning - Have always a budget plan so you would avoid impulsive buying.
Over the longer term, if you are guided by the right principles and reasons in deciding to adopt what I would call a financially sensible lifestyle, the day will surely come when you will look back with pride and satisfaction on the rich rewards that will accrue to you.
To start off, try out the following tips to see if you can take them on board; if you find them to be practicable, then incorporate them into your lifestyle.
1. Eating Out - Having gimmicks with friends on a Friday night is fine if you do it once in a while. But this can be expensive if you add them up at the end of the month.
2. Clothing - Naturally, if you are the kind of person who adores signature and designer clothes, do not expect that there will be something left of your take home pay. Instead of being trendy, wear clothes that can easily be matched with your other clothes.
3. Own Home - If you are planning to move out and find a place to settle, do not be overwhelmed by the excitement, instead be practical. As a start, buy a smaller house or try other ways like rent-to-own, do-it-yourself arrangements, and owner-financing.
4. Buying Your Own Car - Shy away from sports cars or SUVs. Just stick to your purpose for buying a car, which is to transport you anywhere you need to go. Check out also program cars like a new car warranty. Maybe this is not just the best time to replace your car with a new one.
5. Shopping for Groceries - As much as possible do not go with items that are branded. Choose non-brands or "house brands" and try looking for items on the highest or lowest shelves for best prices. Grab the opportunity and shop during sales or use coupons.
6. Family Out - There are inexpensive ways to bond with your family and be entertained like going to libraries, local parks, malling, picnics, visit friends and local church.
7. Buying School Supplies - Stock school supplies at home and do not buy anything fancy.
8. Be contented with what you have and try to live within what you earn.
9. Plan your Child’s College Education - Teach them the ways to be independent and self-supporting by encouraging them to apply for scholarships and “on campus jobs”.
10. Be Aware of your Financial Limitations
11. Avoid Financial Pitfalls by Planning - Have always a budget plan so you would avoid impulsive buying.
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