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.
Wednesday, February 25, 2015
Why You Need an Emergency Fund for Your Debt Control
Some may question the necessity of an emergency fund in your quest for debt control. After all, is it really necessary? How do you go about it? Does it need to be a huge amount? Here are some ideas and suggestions that should help answer these questions.
Is an Emergency Fund Necessary?
Generally speaking, yes, an emergency fund is necessary. What form it takes can vary, but it is a good idea to have an emergency fund. Such a fund can help you avoid high-interest debt, and it helps reduce stress. After all, life is full of changes - many of them sudden and not good - and having that "cushion" can help you feel ready and calm.
How Do You Go about Creating an Emergency Fund?
First, determine your expenses. Look at three to six months' worth of living costs and count on saving that much in a fund. This can help you keep your standard of living for a time if you lose your job, or it can cover a large expense such as vehicle repair.
Then determine how long it will take you to save that much and how much you have to take out of your paycheck each month to reach that goal.
Once you've determined how much you need to save and how long it will take to save it, it's a good idea to change your mentality to put payments into the emergency fund before you pay for anything else. If you can do it by automatic deduction, go for it - see if you can have a portion of your paycheck taken out and put into a savings account. Otherwise, make it a habit to put money in your savings first and foremost, and then take care of your other expenses after.
What If You Have Low Income?
Even if you have low income, you can set aside something each month. Try saving a percentage of your income, such as 5 or 10 percent. It may take you longer, but it will accumulate.
Does It Have to Be Huge?
In short, no. An emergency fund does not have to be massive - but it certainly should cover unexpected expenses. To determine the size of your fund, consider what sorts of emergencies you'd want covered by the fund. Remember that buying insurance may be a more cost-effective way to guard against emergencies, too - evaluate the scope, likelihood, and potential cost of possible emergencies and this should give you a clearer picture of how large your fund needs to be.
Is an Emergency Fund Necessary?
Generally speaking, yes, an emergency fund is necessary. What form it takes can vary, but it is a good idea to have an emergency fund. Such a fund can help you avoid high-interest debt, and it helps reduce stress. After all, life is full of changes - many of them sudden and not good - and having that "cushion" can help you feel ready and calm.
How Do You Go about Creating an Emergency Fund?
First, determine your expenses. Look at three to six months' worth of living costs and count on saving that much in a fund. This can help you keep your standard of living for a time if you lose your job, or it can cover a large expense such as vehicle repair.
Then determine how long it will take you to save that much and how much you have to take out of your paycheck each month to reach that goal.
Once you've determined how much you need to save and how long it will take to save it, it's a good idea to change your mentality to put payments into the emergency fund before you pay for anything else. If you can do it by automatic deduction, go for it - see if you can have a portion of your paycheck taken out and put into a savings account. Otherwise, make it a habit to put money in your savings first and foremost, and then take care of your other expenses after.
What If You Have Low Income?
Even if you have low income, you can set aside something each month. Try saving a percentage of your income, such as 5 or 10 percent. It may take you longer, but it will accumulate.
Does It Have to Be Huge?
In short, no. An emergency fund does not have to be massive - but it certainly should cover unexpected expenses. To determine the size of your fund, consider what sorts of emergencies you'd want covered by the fund. Remember that buying insurance may be a more cost-effective way to guard against emergencies, too - evaluate the scope, likelihood, and potential cost of possible emergencies and this should give you a clearer picture of how large your fund needs to be.
Thursday, February 12, 2015
Keys to a Successful Family Budget
Creating a family budget is within everyone's reach, but creating a successful one requires some particular methods. Here are some tips to help you create a successful family budget.
Get Everyone on Board
The more inclusive your budget is, the more likely it is to work well for your family. Include every family member who is old enough to understand. A budget affects everyone, and it's a good idea to listen to input from other members of the family.
Leave Room for Luxuries
Some budgets are so tight that it may seem there's no room for any luxury. But if you get a bit creative about what constitutes a luxury, you will probably find you can in fact afford some kind of privilege or luxury. It could be something like buying your favorite brand name item at the store instead of settling for the store brand, or maybe buying fresh fish instead of frozen once a month. Maybe ordering a pizza or Chinese food is a luxury for your family that you can include in your budget.
If you are budgeting with more money, your luxury could be a family vacation or new piece of electronic equipment. The point is to include some kind of luxury in your budget. This helps keep family members motivated and makes the budget easier to deal with.
Get a Good Estimation
To do this, it's a good idea to take your last three months' worth of income and create an average. When in doubt, round down so that surprises will be more likely to be on the plus side. The same is true for expenses - include at least three months of expenses to get a true picture.
Be Patient
It takes a few months for a budget to sort itself out and become habit. There will be bugs that need to be worked out. Understanding this can help you stick with it as it needs tweaking and adjusting.
Software
For some, using software to lay out the family budget can be very helpful. Software that is designed for the purpose may make creating the budget easier.
Combine
As you look at the things that cost you money, remember gas and miles on your car. Combining errands is something most people try to do; but there might be some other combinations that you hadn't thought of. For example, visit out-of-town family members during your vacation.
Distinguish between Optional and Necessary Spending
This distinction is harder to make for some people than others, and it's tougher in some family dynamics than others. What one person thinks of as a "necessity" might be looked at as a luxury by someone else. If you're in doubt, check budget formats and accepted principles in this regard that come from a third party.
Pay off Debts
It's unpleasant, but paying off debts needs to be high on the priority list for your family budget. The sooner they're paid off, the sooner you'll have more money left over!
Get Everyone on Board
The more inclusive your budget is, the more likely it is to work well for your family. Include every family member who is old enough to understand. A budget affects everyone, and it's a good idea to listen to input from other members of the family.
Leave Room for Luxuries
Some budgets are so tight that it may seem there's no room for any luxury. But if you get a bit creative about what constitutes a luxury, you will probably find you can in fact afford some kind of privilege or luxury. It could be something like buying your favorite brand name item at the store instead of settling for the store brand, or maybe buying fresh fish instead of frozen once a month. Maybe ordering a pizza or Chinese food is a luxury for your family that you can include in your budget.
If you are budgeting with more money, your luxury could be a family vacation or new piece of electronic equipment. The point is to include some kind of luxury in your budget. This helps keep family members motivated and makes the budget easier to deal with.
Get a Good Estimation
To do this, it's a good idea to take your last three months' worth of income and create an average. When in doubt, round down so that surprises will be more likely to be on the plus side. The same is true for expenses - include at least three months of expenses to get a true picture.
Be Patient
It takes a few months for a budget to sort itself out and become habit. There will be bugs that need to be worked out. Understanding this can help you stick with it as it needs tweaking and adjusting.
Software
For some, using software to lay out the family budget can be very helpful. Software that is designed for the purpose may make creating the budget easier.
Combine
As you look at the things that cost you money, remember gas and miles on your car. Combining errands is something most people try to do; but there might be some other combinations that you hadn't thought of. For example, visit out-of-town family members during your vacation.
Distinguish between Optional and Necessary Spending
This distinction is harder to make for some people than others, and it's tougher in some family dynamics than others. What one person thinks of as a "necessity" might be looked at as a luxury by someone else. If you're in doubt, check budget formats and accepted principles in this regard that come from a third party.
Pay off Debts
It's unpleasant, but paying off debts needs to be high on the priority list for your family budget. The sooner they're paid off, the sooner you'll have more money left over!
Monday, February 9, 2015
Creative Budgeting - Customize Your Budget to Fit Your Family
Your family budget does not necessarily have to fit a template - even if you do use a template, you can customize it. A budget that really fits your style and family dynamic tends to be a lot easier to stick with, and can even be fun! Here are some tips for making a creative, customized family budget.
It's Your Budget
Get your whole family to participate in creating the budget to make it really yours. Create common goals and brainstorm for fun and creative budgeting ideas.
Cookouts
The great American cookout is a great way to have an "outing" while saving money. If you grill seasonal garden vegetables, it's an even bigger money saver. Get creative - you can grill inexpensive, "ordinary" foods and make them seem like a treat. For example, mix up some flat bread dough and cook it on the grill. You can even do pizza on the grill!
Go "Shopping" for What You Don't Need
This can be fun as a family. When you're out running errands or at the mall, make a point of pointing out all the useless things you see that you don't need. Some people can have a lot of fun with this - they find the craziest looking clothes, for instance, and laugh about how much they don't need them and how much they're saving. It's fun, but it also teaches your family some important lessons about needs versus wants.
Creative Savings - a New Take on the "Swear Jar"
Have you heard of a "swear jar"? Some families who are trying to improve their language will institute a swear jar. Any family member who swears has to put a quarter into the jar. Get creative with your family - is there something your family would like to improve on that could use a "swear jar"? Here are some ideas:
* Every time your child talks back he or she has to put a quarter in the jar.
* Playing video games, watching television, and other entertainment media "costs" 50 cents for every half an hour.
* Family members must pay a quarter each time they don't put away their shoes, toys, or whatever item always seems to be left on the floor each day.
* Complaining about dinner will cost family members 50 cents each.
Another method is simply never to spend change. When you pay cash for something, always use paper money - if the total is $5.26, give the clerk $6. Then put this change into the jar. You'll be amazed at how this can accumulate over the year, especially if you use cash often.
DIY Videos
Make use of all those online tutorials to fix minor problems around the house. Try typing your problem into your search engine and look for tutorials. It's amazing how much information is on the internet, even for solving obscure problems.
It's Your Budget
Get your whole family to participate in creating the budget to make it really yours. Create common goals and brainstorm for fun and creative budgeting ideas.
Cookouts
The great American cookout is a great way to have an "outing" while saving money. If you grill seasonal garden vegetables, it's an even bigger money saver. Get creative - you can grill inexpensive, "ordinary" foods and make them seem like a treat. For example, mix up some flat bread dough and cook it on the grill. You can even do pizza on the grill!
Go "Shopping" for What You Don't Need
This can be fun as a family. When you're out running errands or at the mall, make a point of pointing out all the useless things you see that you don't need. Some people can have a lot of fun with this - they find the craziest looking clothes, for instance, and laugh about how much they don't need them and how much they're saving. It's fun, but it also teaches your family some important lessons about needs versus wants.
Creative Savings - a New Take on the "Swear Jar"
Have you heard of a "swear jar"? Some families who are trying to improve their language will institute a swear jar. Any family member who swears has to put a quarter into the jar. Get creative with your family - is there something your family would like to improve on that could use a "swear jar"? Here are some ideas:
* Every time your child talks back he or she has to put a quarter in the jar.
* Playing video games, watching television, and other entertainment media "costs" 50 cents for every half an hour.
* Family members must pay a quarter each time they don't put away their shoes, toys, or whatever item always seems to be left on the floor each day.
* Complaining about dinner will cost family members 50 cents each.
Another method is simply never to spend change. When you pay cash for something, always use paper money - if the total is $5.26, give the clerk $6. Then put this change into the jar. You'll be amazed at how this can accumulate over the year, especially if you use cash often.
DIY Videos
Make use of all those online tutorials to fix minor problems around the house. Try typing your problem into your search engine and look for tutorials. It's amazing how much information is on the internet, even for solving obscure problems.
Thursday, February 5, 2015
Practical Steps to Getting Started on a Family Budget
Are you ready to get started on a family budget? Are you overwhelmed? It can seem complicated at first - how do you categorize everything? What about expenses that fluctuate or aren't monthly? The best thing to do is take a step back and look at some practical steps toward formulating your family budget. Here are some tips.
Estimates and Actuals, not Ideals
Remember that your budget is a tool, not a dream machine. Goals are important, but a family budget should first focus on the numbers you're dealing with. That's the basic first step. Once you have a grasp on that, you can begin a bit more idealizing, such as saving for vacations, desired items, etc.
Start with Your Net Income
First, figure out your net income for each month. This means your income minus taxes, insurance, 401K deductions, and so forth. If you are self-employed, subtract estimated taxes, insurance costs, retirement account savings, etc. At this point, you just need numbers.
Expenses - Keep Categories General
Next, figure out your monthly expenses. If they vary, figure out an average by looking at the last three to six months' worth of expenses. For instance, if your electric bill was $150 last month, $140 the month before, and $175 the month before that, then you can estimate a monthly expense of around $155 for electricity. Alternatively, you could take the highest amount, $175, and go with that.
It's a good idea to keep your categories as general as possible while still preserving clarity. Otherwise, you might get confused or overwhelmed by all the "hair splitting." For example, instead of having "food, paper products, drug items, etc." as categories, you can lump all those expenses under "groceries." Items like "pet supplies" can be their own category, but you might want to include vet bills in that category. Here are some suggestions for categories:
* Charitable giving
* Payment off debt
* Home (mortgage, rent, property tax, insurance, repairs, etc.)
* Vehicle
* Utilities
* Health Care
* Birthday and Christmas gifts
* Cushion (this is money set aside to offset surprises, mistakes, or unexpected expenditures)
* Personal (eating out, hair appointments, etc.)
Stop and Look
At this point, stop and take a look at what you've got so far. Are your expenses greater than your income? It's time to cut back significantly, or find another source of income (or both).
Actual Expenses
So far, you have two columns - income and estimated expenses. Now you need to add another column: actual expenses. Keep track of the real numbers each week over the next month and see how much/if they differ.
Now you're well on your way to a workable budget!
Estimates and Actuals, not Ideals
Remember that your budget is a tool, not a dream machine. Goals are important, but a family budget should first focus on the numbers you're dealing with. That's the basic first step. Once you have a grasp on that, you can begin a bit more idealizing, such as saving for vacations, desired items, etc.
Start with Your Net Income
First, figure out your net income for each month. This means your income minus taxes, insurance, 401K deductions, and so forth. If you are self-employed, subtract estimated taxes, insurance costs, retirement account savings, etc. At this point, you just need numbers.
Expenses - Keep Categories General
Next, figure out your monthly expenses. If they vary, figure out an average by looking at the last three to six months' worth of expenses. For instance, if your electric bill was $150 last month, $140 the month before, and $175 the month before that, then you can estimate a monthly expense of around $155 for electricity. Alternatively, you could take the highest amount, $175, and go with that.
It's a good idea to keep your categories as general as possible while still preserving clarity. Otherwise, you might get confused or overwhelmed by all the "hair splitting." For example, instead of having "food, paper products, drug items, etc." as categories, you can lump all those expenses under "groceries." Items like "pet supplies" can be their own category, but you might want to include vet bills in that category. Here are some suggestions for categories:
* Charitable giving
* Payment off debt
* Home (mortgage, rent, property tax, insurance, repairs, etc.)
* Vehicle
* Utilities
* Health Care
* Birthday and Christmas gifts
* Cushion (this is money set aside to offset surprises, mistakes, or unexpected expenditures)
* Personal (eating out, hair appointments, etc.)
Stop and Look
At this point, stop and take a look at what you've got so far. Are your expenses greater than your income? It's time to cut back significantly, or find another source of income (or both).
Actual Expenses
So far, you have two columns - income and estimated expenses. Now you need to add another column: actual expenses. Keep track of the real numbers each week over the next month and see how much/if they differ.
Now you're well on your way to a workable budget!
Budgeting Basics for your Debt Control
Budget Basics
Have you been talking about a family budget, but aren't sure where to start? Sometimes it's good to start with the basics, such as the basic outline for a budget and the categories you want to include. Here are some tips to help you formulate a simple family budget.
Income
The first place to start in the outline of your budget is with your income. There will be some estimating here, no doubt; but make sure it's estimation, not dreaming, say experts. The income area of your budget is not the place to write down ideals. Simply take a look at your net income over the last three months and estimate an average monthly income. Or you might have income that changes very little month-to-month; it should therefore be pretty easy to figure out your monthly income.
Expenses
Your next category should be expenses. It's good to include enough detail that you have a grasp on things, but splitting your expenses into dozens of little categories will probably only frustrate you. Try to make your categories fairy general - "entertainment," for example, is a more general category than "computer games, movies, cable, and DVDs" listed as separate categories. There will probably be more estimation here than in the income category.
As you break down your expenses into understandable categories and numbers, remember that charitable giving or any giving away of money should be also listed as an expenditure.
Actual Expenses
Estimation gives way to "real" numbers when you write down your actual expenses during the month. This is the last section of your budget plan. Keep a running tally of your expenses for several months, and then look at where you are.
Some Basic Principles
In budgeting, there are some principles that are considered basic. Here are some of them.
* Distinguish between wants and needs. This can be a hard one, but it's vital for a budget to function properly. Beware of convincing yourself that a want is a need when it isn't - you may just be trying to find an excuse to buy the item. Real needs are things like clothes, food, and shelter; but designer clothes, gourmet food, and a palatial dwelling are more like wants!
* Expenses should not exceed income. You may find yourself surprised the first time you do a budget and discover that you actually don't make enough money to cover your expenses. If you discover this, you need to look carefully at your income section and see where you can increase it, and look just as carefully at the expenses and see where you can make cuts.
Have you been talking about a family budget, but aren't sure where to start? Sometimes it's good to start with the basics, such as the basic outline for a budget and the categories you want to include. Here are some tips to help you formulate a simple family budget.
Income
The first place to start in the outline of your budget is with your income. There will be some estimating here, no doubt; but make sure it's estimation, not dreaming, say experts. The income area of your budget is not the place to write down ideals. Simply take a look at your net income over the last three months and estimate an average monthly income. Or you might have income that changes very little month-to-month; it should therefore be pretty easy to figure out your monthly income.
Expenses
Your next category should be expenses. It's good to include enough detail that you have a grasp on things, but splitting your expenses into dozens of little categories will probably only frustrate you. Try to make your categories fairy general - "entertainment," for example, is a more general category than "computer games, movies, cable, and DVDs" listed as separate categories. There will probably be more estimation here than in the income category.
As you break down your expenses into understandable categories and numbers, remember that charitable giving or any giving away of money should be also listed as an expenditure.
Actual Expenses
Estimation gives way to "real" numbers when you write down your actual expenses during the month. This is the last section of your budget plan. Keep a running tally of your expenses for several months, and then look at where you are.
Some Basic Principles
In budgeting, there are some principles that are considered basic. Here are some of them.
* Distinguish between wants and needs. This can be a hard one, but it's vital for a budget to function properly. Beware of convincing yourself that a want is a need when it isn't - you may just be trying to find an excuse to buy the item. Real needs are things like clothes, food, and shelter; but designer clothes, gourmet food, and a palatial dwelling are more like wants!
* Expenses should not exceed income. You may find yourself surprised the first time you do a budget and discover that you actually don't make enough money to cover your expenses. If you discover this, you need to look carefully at your income section and see where you can increase it, and look just as carefully at the expenses and see where you can make cuts.
Wednesday, February 4, 2015
Basics on Budgeting
Have you been talking about a family budget, but aren't sure where to start? Sometimes it's good to start with the basics, such as the basic outline for a budget and the categories you want to include. Here are some tips to help you formulate a simple family budget.
Income
The first place to start in the outline of your budget is with your income. There will be some estimating here, no doubt; but make sure it's estimation, not dreaming, say experts. The income area of your budget is not the place to write down ideals. Simply take a look at your net income over the last three months and estimate an average monthly income. Or you might have income that changes very little month-to-month; it should therefore be pretty easy to figure out your monthly income.
Expenses
Your next category should be expenses. It's good to include enough detail that you have a grasp on things, but splitting your expenses into dozens of little categories will probably only frustrate you. Try to make your categories fairy general - "entertainment," for example, is a more general category than "computer games, movies, cable, and DVDs" listed as separate categories. There will probably be more estimation here than in the income category.
As you break down your expenses into understandable categories and numbers, remember that charitable giving or any giving away of money should be also listed as an expenditure.
Actual Expenses
Estimation gives way to "real" numbers when you write down your actual expenses during the month. This is the last section of your budget plan. Keep a running tally of your expenses for several months, and then look at where you are.
Some Basic Principles
In budgeting, there are some principles that are considered basic. Here are some of them.
* Distinguish between wants and needs. This can be a hard one, but it's vital for a budget to function properly. Beware of convincing yourself that a want is a need when it isn't - you may just be trying to find an excuse to buy the item. Real needs are things like clothes, food, and shelter; but designer clothes, gourmet food, and a palatial dwelling are more like wants!
* Expenses should not exceed income. You may find yourself surprised the first time you do a budget and discover that you actually don't make enough money to cover your expenses. If you discover this, you need to look carefully at your income section and see where you can increase it, and look just as carefully at the expenses and see where you can make cuts.
Income
The first place to start in the outline of your budget is with your income. There will be some estimating here, no doubt; but make sure it's estimation, not dreaming, say experts. The income area of your budget is not the place to write down ideals. Simply take a look at your net income over the last three months and estimate an average monthly income. Or you might have income that changes very little month-to-month; it should therefore be pretty easy to figure out your monthly income.
Expenses
Your next category should be expenses. It's good to include enough detail that you have a grasp on things, but splitting your expenses into dozens of little categories will probably only frustrate you. Try to make your categories fairy general - "entertainment," for example, is a more general category than "computer games, movies, cable, and DVDs" listed as separate categories. There will probably be more estimation here than in the income category.
As you break down your expenses into understandable categories and numbers, remember that charitable giving or any giving away of money should be also listed as an expenditure.
Actual Expenses
Estimation gives way to "real" numbers when you write down your actual expenses during the month. This is the last section of your budget plan. Keep a running tally of your expenses for several months, and then look at where you are.
Some Basic Principles
In budgeting, there are some principles that are considered basic. Here are some of them.
* Distinguish between wants and needs. This can be a hard one, but it's vital for a budget to function properly. Beware of convincing yourself that a want is a need when it isn't - you may just be trying to find an excuse to buy the item. Real needs are things like clothes, food, and shelter; but designer clothes, gourmet food, and a palatial dwelling are more like wants!
* Expenses should not exceed income. You may find yourself surprised the first time you do a budget and discover that you actually don't make enough money to cover your expenses. If you discover this, you need to look carefully at your income section and see where you can increase it, and look just as carefully at the expenses and see where you can make cuts.
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