Tuesday, May 12, 2015
How To Go About Saving Every Month
We all agree that it can be difficult to save each month, especially with the cost of living and expenses that just seem to escalate on a monthly basis.
It is however essential that you make some sort of long term plan to save something each month, even if it means going without that new pair of designer boots that you have your eye on.
Apart from saving for your retirement, which most people do by contributing to a monthly pension fund, you also need to have funds set aside for a rainy day. There is nothing worst than your car needing urgent repairs and you not having the funds to get it done.
Make sure that you have a separate account with at least six months worth of Salary put away, as you never know when you will need it. At least if you loose your income for a while you will be able to survive for a while.
The best way to make sure that you put away something each month is to have a set debit order going off your account on the day after your salary comes in. That way you won't be able to spend it. There are plenty of endowment policy type plans or even tax free savings plans that you can contribute to each month, and you will be amazed at the growth with interest after a couple of years. Even as little as a R100 per month can go a long way to making your future more rosy.
My Dad always used to say - save 10 percent of your monthly income, then at the end of each year you can take 10 percent of the interest earned for the year and treat yourself to something special. The first few years may just be a chocolate or item of clothing, but after that you will be amazed at how compound interest can make your savings grow.
Also most of us know that just having a pension is just not going to cut it for the future, you need to make sure that you are as financially stable as possible well into your golden years.
Tuesday, April 14, 2015
Wednesday, April 1, 2015
Saving Money - Make It a Part of Your Family's Budget
Do you find yourself envious of those who have a savings account? Have you ever found yourself having to charge unexpected expenses on a credit card because you don't have any money saved? If you lost your job, would you have any savings to cover your living expenses?
You may really want a savings account, but aren't sure how those who have one actually do it. Maybe you've tried, and just don't seem to have anything left over each month for savings.
Financial experts across the board recommend having a savings account, however. So how do you go about it? Here are some tips for making saving money a part of your family's budget.
Pay Yourself First
One of the reasons many families feel they can't afford to save is that they don't seem to have enough left over after everything's paid. But what if you put money into your savings account first, and then tackled your other expenses with what's left? Think in reverse! It might help to make it a percentage, say 10%, of your income. You'll learn to mentally note this so that you recognize right away that a $1000 check is actually a $900 one.
Windfalls
Has anyone ever asked you how you're going to spend a certain amount of money? Maybe it's a pile of cash you received as a gift, a tax return, a bonus from work, or some other way that you receive money over and above your usual income. A key to saving is, don't earmark the windfall! Instead, put it in your savings account (unless you have an emergency need for it right away) and use as needed. This requires some discipline, especially if someone gives you cash as a gift and wants to know what you spent it on. But this habit of putting windfalls into the bank is a great way to jump-start your savings account.
Study Your Budget
There's nothing like a budget to show you where you can cut back and save more. Review all those optional expenses - cable, eating out, phone apps, whatever - and see where you can trim unnecessary expenditures. Then move that money over into savings.
Split the Costs
When it comes to involving your kids in the family budget, include them in expenses, too. Various lessons, sports and extracurricular activities can cost a lot of money. If your child wants to get involved in something like this, have a portion of the expense (such as for equipment or uniforms) come out of his or her allowance or birthday money. This helps not only to save money but also to encourage your kids to think before committing to an activity.
You may really want a savings account, but aren't sure how those who have one actually do it. Maybe you've tried, and just don't seem to have anything left over each month for savings.
Financial experts across the board recommend having a savings account, however. So how do you go about it? Here are some tips for making saving money a part of your family's budget.
Pay Yourself First
One of the reasons many families feel they can't afford to save is that they don't seem to have enough left over after everything's paid. But what if you put money into your savings account first, and then tackled your other expenses with what's left? Think in reverse! It might help to make it a percentage, say 10%, of your income. You'll learn to mentally note this so that you recognize right away that a $1000 check is actually a $900 one.
Windfalls
Has anyone ever asked you how you're going to spend a certain amount of money? Maybe it's a pile of cash you received as a gift, a tax return, a bonus from work, or some other way that you receive money over and above your usual income. A key to saving is, don't earmark the windfall! Instead, put it in your savings account (unless you have an emergency need for it right away) and use as needed. This requires some discipline, especially if someone gives you cash as a gift and wants to know what you spent it on. But this habit of putting windfalls into the bank is a great way to jump-start your savings account.
Study Your Budget
There's nothing like a budget to show you where you can cut back and save more. Review all those optional expenses - cable, eating out, phone apps, whatever - and see where you can trim unnecessary expenditures. Then move that money over into savings.
Split the Costs
When it comes to involving your kids in the family budget, include them in expenses, too. Various lessons, sports and extracurricular activities can cost a lot of money. If your child wants to get involved in something like this, have a portion of the expense (such as for equipment or uniforms) come out of his or her allowance or birthday money. This helps not only to save money but also to encourage your kids to think before committing to an activity.
Thursday, March 26, 2015
Family Budgets - A Healthy Outlook
Having a family budget means, for some people, whipping out the calculator at every purchase, or viewing the budget on their mobile device in the grocery store. For others, a family budget is just a formality and they never really glance at it. Between these extremes are those who sort of use their family budget with moments of obsessive adherence, or those who try but give up altogether because they go crazy trying to keep track of all the details.
Where's the balance? How can you maintain a healthy outlook without obsessing or ignoring your family budget?
Here are some tips on how you can cultivate a healthy outlook regarding your family budget.
Flexibility
For those who tend to err on the obsessive side, it is a good idea to remember to be flexible with your budget. Of course, flexibility does not mean ignoring your parameters. But it does mean you can take a little from one area and cut back in another when necessary.
Get Your Family On Board
Nothing can make you frustrated with a budget like lack of family participation. Family members might just rack up expenses without giving the budget a second thought, leaving you to tear your hair out trying to balance it and cover the expenses. If the whole family is included and on board with the budget, it can improve everyone's outlook.
You Don't Have to Keep Track of Every Penny
Some people avoid a budget because they don't want the stress of keeping track of every cent spent. They're right - that is stressful. But it's not the only way. Look into budgeting in a general way, or simply work out a list of expenses, income, and how much you have in the bank right now.
Customize
Don't be afraid to get creative with your budget, and customize it for your family's needs. Your outlook is likely to be a lot healthier if your budget is suited for your income, expenses, and personality. Your family dynamic should be taken into consideration when you form your budget.
Forgive Yourself and Family Members
Everyone makes mistakes and breaks the budget now and then. Beating yourself up over a budget mess-up is not conducive to a healthy outlook, and neither is nagging and punishing family members. If it's a chronic "mistake," it may need to be addressed in a civil family meeting. But to keep a healthy outlook, let the minor offenses go.
Know When It's a Real Emergency
What constitutes an "emergency" can differ between family members. Dipping into the emergency fund for non-emergency expenses can deplete the money pretty fast. Make sure everyone knows what a real financial emergency looks like for your family.
Where's the balance? How can you maintain a healthy outlook without obsessing or ignoring your family budget?
Here are some tips on how you can cultivate a healthy outlook regarding your family budget.
Flexibility
For those who tend to err on the obsessive side, it is a good idea to remember to be flexible with your budget. Of course, flexibility does not mean ignoring your parameters. But it does mean you can take a little from one area and cut back in another when necessary.
Get Your Family On Board
Nothing can make you frustrated with a budget like lack of family participation. Family members might just rack up expenses without giving the budget a second thought, leaving you to tear your hair out trying to balance it and cover the expenses. If the whole family is included and on board with the budget, it can improve everyone's outlook.
You Don't Have to Keep Track of Every Penny
Some people avoid a budget because they don't want the stress of keeping track of every cent spent. They're right - that is stressful. But it's not the only way. Look into budgeting in a general way, or simply work out a list of expenses, income, and how much you have in the bank right now.
Customize
Don't be afraid to get creative with your budget, and customize it for your family's needs. Your outlook is likely to be a lot healthier if your budget is suited for your income, expenses, and personality. Your family dynamic should be taken into consideration when you form your budget.
Forgive Yourself and Family Members
Everyone makes mistakes and breaks the budget now and then. Beating yourself up over a budget mess-up is not conducive to a healthy outlook, and neither is nagging and punishing family members. If it's a chronic "mistake," it may need to be addressed in a civil family meeting. But to keep a healthy outlook, let the minor offenses go.
Know When It's a Real Emergency
What constitutes an "emergency" can differ between family members. Dipping into the emergency fund for non-emergency expenses can deplete the money pretty fast. Make sure everyone knows what a real financial emergency looks like for your family.
Friday, March 20, 2015
Friday, March 13, 2015
How to Know When You Need a Family Budget
Do you really need a budget? Isn't that just a boring list of numbers that means you never get to spend money on what you want?
A budget is really just a way to take control of your finances and debt. It does not necessarily mean you can't ever spend your money on what you want; it just means you spend your money smarter. In fact, if you are always denying yourself and never buying anything you want for fear you can't afford it, a budget could be liberating. Dealing with real numbers tends to be a lot less stressful than dealing with vague impressions of your income and expenses.
So how do you know if you need a family budget? Here are some tips to help you know if you need to form a budget.
1. Your credit cards are never paid off.
If you are paying only the minimum balance on your credit card, and/or using one credit card to pay off another, then it's time to work out a budget to get out of that hole.
2. Money "burns a hole" in your pocket.
Do you feel like you have money for a moment or two, then it's gone? This could mean you have too many expenses, or that you are too quick to spend on wants rather than needs.
3. You don't put any money into your savings, or you are random about how much and when you put money in.
Having a savings plan is an important aspect of financial management. If you don't have any regimented plan for putting money into savings - say the first 10% of your net income always going to savings, or all bonuses from your workplace going straight to savings - then your savings will tend to languish as you keep spending on things you want.
4. You don't have a savings account at all.
If you don't have any savings or emergency fund, it may be a sign that you need a budget. A good family budget can help you make savings a priority.
5. You're always saying, "I can't afford it."
Do friends ask you to go out to lunch, or to an event, and you say you "can't afford it" all the time? This may be true, or it may not be; forming a budget will help you know what you really can and can't afford.
6. You never seem to have enough.
Money can be deceptive - what seems like "plenty" can suddenly be not enough. Forming a budget can help you get a grip on what you really have; you may be pleasantly surprised that you do actually have enough, or that it's feasible for you to make some strategic cuts so that you will have enough.
A budget is really just a way to take control of your finances and debt. It does not necessarily mean you can't ever spend your money on what you want; it just means you spend your money smarter. In fact, if you are always denying yourself and never buying anything you want for fear you can't afford it, a budget could be liberating. Dealing with real numbers tends to be a lot less stressful than dealing with vague impressions of your income and expenses.
So how do you know if you need a family budget? Here are some tips to help you know if you need to form a budget.
1. Your credit cards are never paid off.
If you are paying only the minimum balance on your credit card, and/or using one credit card to pay off another, then it's time to work out a budget to get out of that hole.
2. Money "burns a hole" in your pocket.
Do you feel like you have money for a moment or two, then it's gone? This could mean you have too many expenses, or that you are too quick to spend on wants rather than needs.
3. You don't put any money into your savings, or you are random about how much and when you put money in.
Having a savings plan is an important aspect of financial management. If you don't have any regimented plan for putting money into savings - say the first 10% of your net income always going to savings, or all bonuses from your workplace going straight to savings - then your savings will tend to languish as you keep spending on things you want.
4. You don't have a savings account at all.
If you don't have any savings or emergency fund, it may be a sign that you need a budget. A good family budget can help you make savings a priority.
5. You're always saying, "I can't afford it."
Do friends ask you to go out to lunch, or to an event, and you say you "can't afford it" all the time? This may be true, or it may not be; forming a budget will help you know what you really can and can't afford.
6. You never seem to have enough.
Money can be deceptive - what seems like "plenty" can suddenly be not enough. Forming a budget can help you get a grip on what you really have; you may be pleasantly surprised that you do actually have enough, or that it's feasible for you to make some strategic cuts so that you will have enough.
Monday, March 2, 2015
Debt Control and Sticking To a Budget
So you have a family budget. There's only one problem - you haven't stuck with it! Maybe your budget is nicely outlined and detailed, but sits unused on your computer or in your desk drawer. Sound Familiar?
Formulating a budget is a challenge, but once you have it done, it doesn't do any good unless you stick with it. Of course, sometimes you do need to compromise, and your budget does need to be somewhat flexible. But you can periodically tweak and adjust your budget and still stick to it. Here are some creative and even fun tips for sticking with your budget.
Have a Look-See
Maybe your budget didn't work out because it didn't fit your needs. Take a fresh look at your budget and ask some of the following questions:
* Is it too detailed? You might find it exhausting trying to keep a budget that has dozens of categories.
* Is it too simple? If your budget is too general, you may have let it slide because there just weren't enough details to get a true grasp on your finances.
* Does your budget include alternatives? If your family is not the creative type, you may have had trouble coming up with alternatives to the budget cutbacks. For instance, if your budget revealed that you needed to cut back on eating out, and you didn't have an alternative plan for what you were going to do instead of eating out, you might have slipped up and deviated from your budget. For some people, this is natural; others need to write in alternatives.
* Are you realistic about your income? A budget may fail if your income section is more about goals and ideals than actuals.
* Are there rewards? A budget should have some rewards worked into it - a vacation, a movie out, or a new pair of shoes.
Include Fun Alternatives
As noted above, having alternatives to fill the void created by cutbacks is helpful to keeping your budget. Having creative and fun alternatives may be even more helpful. Here are some ideas.
* Instead of eating lunch out, pack a fun lunch Bento-style.
* Lunch-in can be a fun picnic, indoor or outdoor.
* Staying home for dinner can be fun if it involves a cookout or, if you're really in the mood to be creative, experimenting with a homemade solar oven.
* Cutting back by getting rid of cable need not be too painful - high-speed internet access is generally a whole lot cheaper than cable, and the family can have fun gathering around the computer for movie night online.
* Instead of going to the movies, make your own. Have a family make-a-movie night and put on plays, puppet shows, or what-have-you. Capture the fun using your digital camera or webcam.
* Look up how to make your own skin cleansers, household cleaners, and even shampoo online. Learn how you can make these things for pennies, saving by shunning store-bought versions and having fun in the process.
Sometimes, just getting creative and customizing your budget to fit your family can go a long way toward encouraging everyone to stick with it.
Formulating a budget is a challenge, but once you have it done, it doesn't do any good unless you stick with it. Of course, sometimes you do need to compromise, and your budget does need to be somewhat flexible. But you can periodically tweak and adjust your budget and still stick to it. Here are some creative and even fun tips for sticking with your budget.
Have a Look-See
Maybe your budget didn't work out because it didn't fit your needs. Take a fresh look at your budget and ask some of the following questions:
* Is it too detailed? You might find it exhausting trying to keep a budget that has dozens of categories.
* Is it too simple? If your budget is too general, you may have let it slide because there just weren't enough details to get a true grasp on your finances.
* Does your budget include alternatives? If your family is not the creative type, you may have had trouble coming up with alternatives to the budget cutbacks. For instance, if your budget revealed that you needed to cut back on eating out, and you didn't have an alternative plan for what you were going to do instead of eating out, you might have slipped up and deviated from your budget. For some people, this is natural; others need to write in alternatives.
* Are you realistic about your income? A budget may fail if your income section is more about goals and ideals than actuals.
* Are there rewards? A budget should have some rewards worked into it - a vacation, a movie out, or a new pair of shoes.
Include Fun Alternatives
As noted above, having alternatives to fill the void created by cutbacks is helpful to keeping your budget. Having creative and fun alternatives may be even more helpful. Here are some ideas.
* Instead of eating lunch out, pack a fun lunch Bento-style.
* Lunch-in can be a fun picnic, indoor or outdoor.
* Staying home for dinner can be fun if it involves a cookout or, if you're really in the mood to be creative, experimenting with a homemade solar oven.
* Cutting back by getting rid of cable need not be too painful - high-speed internet access is generally a whole lot cheaper than cable, and the family can have fun gathering around the computer for movie night online.
* Instead of going to the movies, make your own. Have a family make-a-movie night and put on plays, puppet shows, or what-have-you. Capture the fun using your digital camera or webcam.
* Look up how to make your own skin cleansers, household cleaners, and even shampoo online. Learn how you can make these things for pennies, saving by shunning store-bought versions and having fun in the process.
Sometimes, just getting creative and customizing your budget to fit your family can go a long way toward encouraging everyone to stick with it.
Subscribe to:
Comments (Atom)