Posts Tagged ‘expenditures’
Saturday, February 6th, 2010
Overspending is an enormous problem for Americans right now and the sad truth is, many of us do not even know we are doing it. If you are finding it hard to make ends meet at the end of the month, or you are desperately waiting for that next paycheck to arrive, you may need to take a hard look at your financial situation, your budget and how much you spend every month.
Track how much money you spend on small things.
We typically consider our rent or mortgage payments, car loans and utilities as the only items that need to be budgeted, but there are many small items that can crop up and eat away at your bank balance. These are typically unnecessary expenses, and over time, enough of them can quickly add up. Let’s take a look at how to determine how much you spend and how you can get your expenditures in line with what you make.
It’s a great idea to keep a little log book and write down everything you buy for the period of one month. Everything, no matter how small, should be noted down in your log. At the end of the month, total everything up and see just how much money you have going out the door. This is probably the easiest way to figure out what needs to be cut, since you’ll have everything right in front of you. Here are some of the most common culprits.
1. Eating Out.
Americans spend thousands, if not tens of thousands, eating out and these expenses can quickly add up. You can save quite a lot of money simply by cutting out one meal out a week, and even more if you really get serious about cutting back. Once you’ve logged how much you spend on food, you may be surprised at how much of your paycheck is missing.
2. Recurring Subscriptions.
This is a problem for many online. You sign up for something, forget to ask for a refund before the trial is over, and before you know it, you’ve got several “memberships” or recurring fees that you don’t even know about, all being taken right out of your account every month. These will add up fast, and can do a lot of damage if they are not caught in time.
3. Superfluous Items.
Even though these items are typically small, they take up a big chunk of your budget. All too often we don’t think about the little, “it’s only a dollar,” items that we see at the store. While each one may be inexpensive, when you add them all up, it can be shocking to see just how much you are spending. The log book of your monthly expenses really comes in handy to see which of these items can be cut from your budget.
By taking the time to see how much money you actually do spend, you can stop overspending before it gets out of control and starts to eat away at your paycheck.
Photo Credits: 1
Originally posted 2008-10-10 05:16:41. Republished by Blog Post Promoter
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Free Personal Finance Software Giveaway! Well, on the heels of the big giveaway by Money Crashers, I’m continuing the trend this week with a giveaway that is sponsored by YNAB (You Need A Budget). I’ve long advocated YNAB as a standalone personal finance application that can help you manage your spending and your budget better.......
Tags: bank balance, budget, car loans, enormous problem, expenditures, financial situation, how much money, mortgage payments, overspending, paycheck, sad truth, subscriptions, tens of thousands, unnecessary expenses
Posted in Money Saving Tips, Paycheck to Paycheck, Personal Budget Planning, Personal Finance | No Comments »
Friday, February 5th, 2010
Money managers for many are necessary.
If your idea of organizing your finances is throwing a receipt in a big pile, you may want to consider the benefits of hiring a money manager. There is a new trend in the financial world where daily money managers are becoming very popular, and for many consumers, they are very necessary. Let’s take a look at what a daily money manager does and how they may be able to benefit your personal finances.
1. Organize paperwork and receipts.
When it comes to getting your paperwork in order, or keeping a record of all of your receipts, most of us end up failing miserably. Trying to track down little slips of paper is maddening at best, and for those of us with little time on our hands, the task of getting our paperwork organized is simply too much. We put it off and before long you end up with a slew of jumbled papers and you can’t find the one receipt you really need. A daily money manager will catalog all of your paperwork, filing it away and help you keep track of expenditures by organizing your receipts.
2. Paying bills on time.
If your schedule is hectic, or you simply aren’t good about dates, paying your bills on time can be a struggle. A daily money manager can be used to help you make sure that all of your deadlines are met, and that nothing is left unpaid by the end of the month. Once again, for those with a busy lifestyle or an inability to keep everything running smoothly, a daily money manager can be a true financial lifesaver.
3. Mediation.
A daily money manager does not replace an accountant or a lawyer, but they can assist in mediating between their clients and these professionals. For example, if you have filed a claim with an insurance agency, a money manager can assist you in handling the communication with the agency and getting all of your necessary documents together. The vast majority of daily money managers are trained and have backgrounds that include legal, financial, and insurance expertise.
4. Day to Day Basics.
For many of us, the devil is in the daily basics of keeping our finances ordered. Instead of letting things get out of hand for months at a time, a daily money manager can offer assistance in keeping checkbooks balanced, paperwork accounted for and everything you need to have handled in your personal finance life done.
As we get busier as a society, it is clear that there is a definite need for daily money managers. If you do decide to hire a daily money manager to help manage your finances, there are a few things to consider ahead of time. First, you will need to make sure that they are accredited and licensed. This professional will have access to your documents and it is vital to ensure that you can trust them. Look for a major national firm or someone in your local community that you can rely on.
Photo Credits: 1
Originally posted 2008-10-09 05:14:08. Republished by Blog Post Promoter
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Tags: accountant, consumers, expenditures, insurance agency, lawyer, lifesaver, mediation, money manager, money managers, necessary documents, new trend, organizing your finances, paperwork, personal finances, receipt, receipts, slips of paper, time on our hands
Posted in Managing Money Wisely, Money, Personal Budget Planning, Personal Finance, Smart Money Ideas | No Comments »
Sunday, January 3rd, 2010
Add budgeting to your personal finance repertoire.
The key to your financial success in life is your own personal money management skills. Your personal money management practices make up your own personal method of reaching both your goals and your dreams. No one likes the idea of personal budget planning, but you will never know if you are getting the most out of your money if you do not implement some techniques for personal budget planning into your life. Everyone wants to keep up on their bills, pay off loans and credit cards, and stay ahead of debt. Successful asset and debt management is an excellent source of pride as well as good credit.
Whether we use credit or not, all of us want to have a good credit score and credit report. So unless you have an unlimited amount of money that you can simply spend in any way that you wish, you are going to need to formulate some semblance of a personal budget in order to get your bills paid and in order to manage your assets as well. Personal budget planning can seem difficult, but should not be an overwhelming process by any means.
Creating a household budget begins by figuring out what all of your monthly and yearly bills are. Then you are going to want to add in any retirement funding, savings goals and spending money so that you have a clear cut picture of how much you need to spend, because what doesn’t matter is how much money you make – what does matter is how you spend the money that you make. By implementing personal budget planning techniques into your daily life, you can get a feel for how what you make relates to what you spend, and how cutting down expenditures in certain areas of your life can actually help you save a significant amount of money.
When you fail to follow personal budget planning, your debt may overcome your income, meaning that you would be unable to make payments on time. If you make payments late or make no payments at all, you will put yourself in serious mounting debt with no way out. You cannot simply spend money as you wish and hope that there is enough left over at the end of the month with which to tackle the bills. You absolutely must implement techniques for personal budget planning if you want to manage your finances right.
Personal budget planning is actually quite easy when you consider how many resources are out there for it. Most people use budgeting software on their computers to prepare a household budget. If you do not have any fancy software, another opportunity is simply to use excel to track money in and money out. When you have a clear cut picture of where your money is going, that is when you can truly begin to implement smart money saving strategies to get your finances on track.
Photo Credits: 1
Originally posted 2009-01-05 05:52:54. Republished by Blog Post Promoter
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Tags: amount of money, assets, creating a household budget, Credit Cards, credit report, credit score, debt management, expenditures, financial success, management practices, money management skills, personal budget, personal method, personal money management, planning techniques, pride, retirement, savings goals, semblance, spending money
Posted in Managing Money Wisely, Money, Personal Budget Planning, Personal Finance | No Comments »
Tuesday, December 22nd, 2009
Avoiding budgeting?
One of the things that can make your life easier, even though it sounds complicated, is personal budget planning. If you’re one of the fortunate few who never has to worry about running out of money no matter how many extra expenses might crop up or how much extra you might spend on Christmas or leisure activities, then maybe a budget isn’t that important. But for the rest of us, a budget can make the difference between having to scrape by on that last $20 or putting an extra $20 into our savings account at the end of the month.
Many people avoid personal budget planning. Some don’t want to face the numbers. They know they’re not earning enough to keep spending at the same rate they have been, so making out a budget will cause them to face some painful truths—they’ll have to earn more money, or spend less money, or both. Other people think it’s just too complicated and will take hours and hours to do properly. Yet others simply don’t know where to begin.
If you think personal budget planning will take hours or weeks and be a confusing process you’ll wish you never started, you’re making it harder than it is. It’s not even necessary to do everything terribly detailed at first, which makes it easier. You can come up with ball-park figures to get started—how much do you spend on your bills vs how much do you earn? Don’t forget other expenditures like eating out, groceries, household goods, gifts and leisure activities like going to the the movies when you estimate how much you spend each month—a look back at your credit card and checking account information makes coming up with figures easier than you thought.
If you’re in the group of people who don’t spend time personal budget planning because you know the picture’s not going to be a pretty one, you’re actually someone who needs a budget more than most! List all of the things you spend money on that aren’t necessary or that you could make compromises with, like taking a brown bag lunch to work instead of spending $8 dollars a day at a restaurant. It can be less painful than you think to make ends meet. If you’re in the other group of people but you don’t know where to start, you can make the same lists and you’ll be started before you know it.
So what’s the best way to make a budget, now that you know how to start?
You could just make a spreadsheet on your computer or even just make a list on paper, but personal budget planning software can help you do more than crunch the numbers, some software allows you to set spending goals and warns you when you’re about to go over budget in an area. You just plug in the numbers and the software does all the analyzing for you, making personal budget planning as easy for you as possible.
Photo Credits: 1
Originally posted 2008-12-24 05:48:50. Republished by Blog Post Promoter
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Tags: ball park, brown bag lunch, checking account, christmas, compromises, credit card, expenditures, groceries, household goods, leisure activities, Money, painful truths, personal budget
Posted in Money, Personal Budget Planning, Personal Finance | No Comments »
Monday, December 7th, 2009
One of the biggest reasons why having a teenage child can be difficult is because teenagers tend to spend money easily and freely without any real regard for what goes into earning that money in the first place. Teenagers tend to spend a great deal of money on clothes, shoes, toys, video games, computer stuff, without ever really buying anything that they need. One of your biggest jobs as a parent is to teach them how to save their money.
First of all, you should teach your teenager how to save money by opening them up a bank account. When they have their own bank account, they will have a paper transcription of how and where they spend their money. Deposit their allowance directly into the bank account, and explain to them that once the money is gone for the month, it’s gone. This will teach your teens to be more savvy when saving money because they will have a better idea of how much goes in and how much comes out, and will learn to better track their expenditures accordingly if they know that the money will eventually run out if they are not careful.
Give a man a fish and you feed him for a day.
Another consideration that you need to make when it comes to teens saving money is a really valuable quote that applies to many situations including this one: “Give a man a fish and you feed him for a day. Teach him how to fish and you feed him for a lifetime.” What this quote means is that giving your teenager an allowance, or money for the movies, or for any other reason, they will use that money and then it will be gone. If on the other hand you teach your teens how to handle their money and save their money, it will prepare them for a lifetime of financial fitness, which is the most ideal situation. By teaching your teen how to earn and save money, how to invest, and so on, you are preparing them for a lifetime of intelligent financial decisions. This may not prevent them from making poor decisions in the future, but it will better prepare them for what life throws at them as they get older.
You absolutely must be able to teach your teenage children how to handle their money. Once they understand what goes into making or earning the money, saving the money and investing the money, they will spend their money more wisely in the future. Teach your children how to invest, and how to get the most out of their money, and you will find them being excited about saving their money rather than spending it frivolously. If you want your teens to be savvy when it comes to saving and investing their hard earned money, you have to teach them the value of that money and what can be done with it besides buying designer jeans, ring tones and other toys. Not only will you benefit, but they will benefit significantly as well.
Photo Credits: 1
Originally posted 2008-12-09 05:03:43. Republished by Blog Post Promoter
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How Much Money Do You Really Spend? Overspending is an enormous problem for Americans right now and the sad truth is, many of us do not even know we are doing it. If you are finding it hard to make ends meet at the end of the month, or you are desperately waiting for that next paycheck...... -
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Tags: clothes, expenditures, financial decisions, financial fitness, fish, how to save money, jobs, lifetime, money deposit, poor decisions, regard, saving money, shoes, teenage child, teenager, teenagers, toys, transcription, video games computer
Posted in Loanio, Managing Money Wisely, Money, Personal Finance, Savings, Teens Saving Money, Teens and Money | 1 Comment »
Monday, November 23rd, 2009
Teach your teen about money.
One of the biggest reasons why having a teenage child can be difficult is because teenagers tend to spend money easily and freely without any real regard for what goes into earning that money in the first place. Teenagers tend to spend a great deal of money on clothes, shoes, toys, video games, computer stuff, without ever really buying anything that they need. One of your biggest jobs as a parent is to teach them how to save their money.
First of all, you should teach your teenager how to save money by opening them up a bank account.
When they have their own bank account, they will have a paper transcription of how and where they spend their money. Deposit their allowance directly into the bank account, and explain to them that once the money is gone for the month, it’s gone. This will teach your teens to be savvier when saving money because they will have a better idea of how much goes in and how much comes out, and will learn to better track their expenditures accordingly if they know that the money will eventually run out if they are not careful.
Another consideration that you need to make when it comes to teens saving money is a really valuable quote that applies to many situations including this one: “Give a man a fish and you feed him for a day. Teach him how to fish and you feed him for a lifetime.” What this quote means is that giving your teenager an allowance, or money for the movies, or for any other reason, they will use that money and then it will be gone. If on the other hand you teach your teens how to handle their money and save their money, it will prepare them for a lifetime of financial fitness, which is the most ideal situation. By teaching your teen how to earn and save money, how to invest, and so on, you are preparing them for a lifetime of intelligent financial decisions. This may not prevent them from making poor decisions in the future, but it will better prepare them for what life throws at them as they get older.
You absolutely must be able to teach your teenage children how to handle their money.
Once they understand what goes into making or earning the money, saving the money and investing the money, they will spend their money more wisely in the future. Teach your children how to invest, and how to get the most out of their money, and you will find them being excited about saving their money rather than spending it frivolously. If you want your teens to be savvy when it comes to budgeting, saving, and investing their hard earned money, you have to teach them the value of that money and what can be done with it besides buying designer jeans, ring tones and other toys. Not only will you benefit, but they will benefit significantly as well.
Photo Credit: 1
Originally posted 2008-11-25 05:01:04. Republished by Blog Post Promoter
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- 5 Tips for College Students on Budgets When you are in college, it can become easy to get caught up in your busy, stressful lifestyle. With all of the studying and working that you have to do, coupled with hanging out with your friends, working part time jobs and participating in extra activities, it can actually become......
Related Sites - Are You Saving Money Just to Save, Or Saving With Purpose? Earlier this week I walked into our HR office and asked about maxing out my 401k contributions. Up to that point, I had been saving exclusively in a Roth IRA because my company did not match contributions (they contribute a portion of salary rather than a percentage of employee contributions).......
- Powerful Savings Through an FSA If you have fairly predictable expenses for day-care or medical needs, there's a tool you can use called medical and dependent-care flexible spending accounts (FSAs) which offer opportunities at minimum, hundreds of dollars in savings a year. What's especially great about these is they're tax free while you are able......
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what if saving was stupid Personal finance wisdom teaches us that you should always "save for the future." You should take your current earnings and put at least some aside for the future. That future may be a time when you need an emergency fund (health crises, car repairs, etc.) or a child's education,...... - My 25 ways to save money-the small things add up! Dawn over at FrugalForLife has a great article up on 25 ways she saves money..and other people have been adding their lists as well. I figured I would sit down and write out the ways that we try to save money, especially now that I quit my job the other......
- Tracking Your Spending For A Month Can Help Open Your Eyes To Unnecessary Expense. Due to some pressing issues here on the homefront, I will be running a few guest posts this week. This is a post from Peter who writes for Bible Money Matters, a blog about personal finance and faith. You can subscribe to his RSS feed here or via email here.......
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