| |
| |
|
Personal Finance Information |
|
|
|
Budgeting your Savings - Did You Let Your Piggy Bank Get Away?
I think most of us have at some point in our lives. Some how we forget to feed the little piggy. And, like most neglected "pets", your piggy bank will disappear if you don't feed it. A personal budget is important to create financial independence and setting goals for feeding that "piggy bank" should be an important part of your budget! The most successful financial plans allow you to INVEST IN YOURSELF! It just makes good sense. A plan to build financial security should always be considered essential to any budget. Even if you're on a plan to reduce debt, you need to include plans to build a foundation for future financial security. A good savings routine and variable expense account are essential to building a strong foundation for financial independence. A variable expense allowance in the budget is important to save for those expenses that seem to "hit us unexpectedly". Funny thing is, we know these expenses will occur. They are an inevitable fact of finances for most of us. So, why do we call them unexpected? I can't explain why, but there are many of us who make this very BIG mistake in our budgeting. Some expenses don't occur monthly. Some are paid out every now and then, quarterly, yearly, or bi-monthly, or semi-annually. These are expenses like car insurance and maintenance, home insurance and maintenance, property taxes, income taxes, medical expenses (prescriptions, deductibles, co-pays), pet care, school expenses (supplies, trips, activity fees, books), and clothing. Some of these are huge expenses that can put a ripple in any good budget if not planned for. Most of us have good intentions, but it's easy to fall prey to the credit card companies without a plan to cover all of these "unexpected" expenses. The term still makes me chuckle. I mean, don't we "expect" to wear clothes? It's even funnier to me knowing that I was guilty of this very thing. Poor Planning! Not expecting what should be expected. Lesson ???.Don't forget about this expenses in your budget. They will sabotage the best of intentions! The other essential ingredient to a successful budget is a savings plan. A good savings plan should have a goal to reach at least the minimum amount necessary for you to survive for a three to four month period. It may take time, but this a strategy that provides a fail safe against a financial crisis. Crisis such as serious illness or job loss. Trying to save money by cutting your savings budget out will eventually backfire on you. It is essential to build financial security, in order to remain debt free, you must not compromise your savings expense. Only if there is no way to avoid it should you reduce the amount of your monthly savings commitment. Start with 2-4% of your monthly income if you have to. A little is better than nothing, and then you can build it up from there to at least 10% of income as funds become available. Some Important Points: Applying extra funds to your debt first will not help you gain financial security. Emergency savings and variable expense savings goals should be met before debt is reduced in order to remain debt free. After all, these sources will be the foundation you will fall back on in order to remain debt free. If you can build a reserve for emergencies you won't have to use those nasty credit cards. This is an important defense that builds financial security. If you use a good debt reduction plan, debt will reduce, and in a reasonable amount of time. As long as you stop creating debt. Just be patient. Paying more on your debt, instead of saving, is not going to help you pay for that major car repair when the car breaks down. It will most likely do the opposite of your intended plan and send you running for the credit card to bail out. Of course once you have reached your goals for savings and your variable expense account, then you should start applying extra funds to your debt reduction plan. Using money saving tips reduces expenses in your budget in an effort to help you build that financial security. Through saving money on everyday expenses and living a frugal lifestyle, you free up monies to apply to your savings and variable expense account. These are the defenses that build a strong foundation for your financial independence. These "defenses" prepare for the inevitable expenses that will arise. Many of us had just forgotten to plan correctly for these types of expenses. That's how we got in the "big red mess" to begin with. Properly preparing for necessary variable expenses is your defense against feeling the need to use the credit cards. Once you have balanced your expenses with your income, you have created a Budget for Debt Free Living. Congratulations! You are on your way to financial freedom and security. Enjoy! This concept is simply "living within your means." Something that many of us in today's "plastic society" have forgotten to do. Live Debt Free to Be Free. You Deserve It! Cheryl Johnson is a mother of four helping herself and others become and stay debt free. Publisher of Simple Debt Free Living at http://www.simpledebtfreeliving.com - A self-help plan, ideas, and resources for debt management, household budget planning, frugal and debt free living, and extra income opportunities. Money saving tips for groceries, clothing, gifts, home decorating, weddings, and much more. A money saving tip a day keeps the credit card away.
MORE RESOURCES:
|
|
|
|
RELATED ARTICLES
Organizing Your Finances - Thinking Outside the (Shoe) Box If you're like most people, your personal financial records are most probably kept in less than "Good Accounting Practices" standards. For example, stashing old ATM receipts and hanging on to a stub showing what you paid for a pack of mints two years ago (cash, of course), might be filed with your paycheck stubs, credit card statements - paid and unpaid alike - as well as a few tax forms, a stray paper clip and a penny. What is ChexSystems? Commonly referred to as the first of the three major "Check Systems" in the U.S. How to Draw a Personal Budget that Works Many people spend their little income haphazardly without any planning and end up getting broke before month-end. They then borrow to make ends meet and end up with more problems that they fail to repay their debts promptly. A Fresh Start for Family Finances in 2005 While 40% to 50% of us make New Year's resolutions on January 1-a ritual that has existed since ancient times-approximately 60% to 80% of us have already broken them by the end of February, according to researchers.It's still not too late, however, to reset the trajectory on your family's finances, experts note. Car Donations and Used Car Donations Car donations and used car donations are the way many people choose to recycle their older model cars without having the headache of repairing, advertising, showing, and hopefully then selling them. Being able to get rid of an older car and at the same time gaining the benefits of charitable giving and a tax deduction are all part of the allure of used car donations. Should You Borrow From Your 401(k) Account? If you have a 401(k) account, it can be very tempting to borrow from your account especially when your balance is very high and a loan could easily pay off existing debt, fund a home purchase, or pay for college tuition. Before you make the decision to borrow money, there are several things you must keep in mind to avoid risking your funds. Budgeting -- The Critical Flaw That Causes Most Budgets to Fail Budgeting. It's a word we're all familiar with. Avoiding A Nightmare On Renovation Street You've decided you want a bigger, better and more desirable house. How do you determine when to renovate, what to do and importantly, how much will it cost and will we get our money back?Unless you're in the building industry, most people are fairly naïve when it comes to making decisions about renovating. 10 Tips To Save Money When Dining Out Here are some tips that can help you save money when dining out. Keep in mind that these tips are intended to help you save money when dining out at a restaurant type setting. What is a Traditional IRA? With a traditional Investment Retirement Account (IRA) you pay taxes when you take the money out at retirement in the future. Make sure that this account is really worth opening in your situation because what you put in the account today may be fully deductible, partially deductible or non deductible, depending upon your income and other retirement coverage. Bankruptcy Laws Get Tougher - More Expensive If you've been thinking about filing for bankruptcy, your best bet might be to file now.A new bankruptcy law takes effect in November that will make it harder and more expensive for most families to file for bankruptcy and discharge their debts. Reduce College Debt with Scholarships Six Scholarship judges were sitting around an oval table. Forms were piled into 50 boxes. Whats The Truth Behind Your Finances? Between 15 - 20% of people in our country (UK) own there own businesses. This statistic is on the rise thanks to the incredible invention of the Internet. How to Obtain a Non ChexSystems Bank Account Without Being Scammed Predatory lending exists in the mortgage industry. It's typically when a mortgage broker add's on unnecessary fee's to a bad credit application, because he or she knows that the applicant is in a desperate situation. How To Place an Online Order for Checks - It is Easy as 1-2-3 If You Have an Existing Account and 5 Minutes, You Can Place Your Online Order that Easy!Ordering checks online has become very popular for a number of reasons. The main reason for the majority of people is because they can choose a fun design that fits their personality that is not available at their local bank. Budgeting Your Way to Financial Freedom Financial freedom cannot be achieved without budgeting. Budgeting involves tracking your sources of income and more importantly tracking your expenses. Budgeting the Key to being Financially Stable Single Mother's in need of Financial GuidanceBudgeting is key to being financially stable. A budget is a systematic plan for the expenditure of a usually fixed resource, such as money or time, during a given period. Save Money on Gas Gas prices have soared to unimaginable heights of late. Since most of us are not likely to turn to bikes or horse-drawn buggies we will have to learn to get the most from our gas dollars. Money Saving Tips. Maximize Savings on Everyday Items! Frugal living is more than a lifestyle. It's a passion. Improve Your Professional Image Using Address Labels One of the simplest ways to improve your professional image is by using address labels. Self-adhesive business labels are THE way to go when it comes to a professional image.
|
| home | site map |
| © 2006 Indexadvertisements.com |
