| |
| |
|
Personal Finance Information |
|
|
|
Creating A Household Budget
Creating a budget can be a very difficult task. Although we as consumers know that we need to pay our bills, buy our necessities, and put money away for savings, we don't really know how to start. I know from personal experience how hard creating a budget can be. In the beginning stages of my road to financial freedom, I would write all my expenses down on paper and noticed that I had little and sometime nothing left over to save. I tell my clients that seeing everything on paper is only the first of many reality checks while getting their finances in order. I think all advisors in the financial world can agree that using categories helps tremendously. Everyone will not have the same categories thus making every budget unique. A category simply is nothing more than a grouping. Instead of listing each credit card bill separately on my budget, I will give all of my credit cards a category, for example I will list it as "debt". Some popular budgeting categories are housing, savings, utilities, donations, healthcare, miscellaneous and income to name a few. There are many budgeting software programs out there. I suggest however, that in the beginning stages of creating a budget you should continue to do things manually. This way you are constantly viewing your money and staying in touch with your expenses. Another very important task of a successful budget is keeping up with your expenses and all of your receipts. Now, I know this is difficult especially when buying what we think are small things but believe me it is very significant, especially for married couples. If one spouse is spending over $4.00 a day 7 days a week on a cappuccino, that one purchase is costing your household $120.00 a month. To help solve this difficult task, keep a box in a common area and commit to tossing all your daily receipts in that particular box. When you sit down to work on your budget pull out all the receipts and categorize them. I suggest you do this weekly in the beginning. The box can fill up pretty quickly, especially when two people are contributing their individual receipts. Last but not least place your categories in a percentage list. For example look at your life in the eyes of a lender. You should spend no more than 35% of your gross income on rent or a mortgage payment including tax and insurance. If you're spending more than 35% adjust your budget according to your true picture. However the total of all your categories cannot exceed 100%. Once you tally-up your actual budgeting totals, compare them to your translated percentage dollar amounts and see how you rate. Most will find out that they have a lot of work to do. If you find that creating and sticking to a budget is overwhelming, seek the help of a professional. Dina D. Harbour, Financial Coach All Rights Reserved Financial Management Experience: Since that time, she has worked as a Loan Closer for the SBA, Loan Officer for ACORN Housing, Trust Assistant for Wells Fargo Bank, and successfully won a $5000 laws suit against Equifax Credit Bureau in 2002 for reporting improper credit information. She has over 18 years experience helping people understand the importance of debt and credit. She has given many seminars over the years to Non-Profit Organizations, Libraries and private groups.
MORE RESOURCES:
Personal-Finance - Google News |
|
|
|
RELATED ARTICLES
Chex Systems - Why Every American Needs To Guard His Checking Account With His Life Most Americans have been brought up to be concerned about a good personal credit rating, because of the role a positive rating can play in your long term plans; purchasing a home, buying a car, getting a business loan, etc. They have also been made to understand that the premier organizations that pretty much hold the key to their financial futures are Equifax, TransUnion and Experian. Budgeting: A Tough Love Way to Handle Your Household Budget Developing and living by a household budget is by far the best way to get your expenses under control which, in turn, can mean a much less stressful life.However, many families find it very difficult to stick to a budget. Grocery Savings - Your Kitchen is a Goldmine! Your food budget is the most flexible area of your household budget. Grocery savings will free up a significant amount of money if you need to balance the budget, or fund your savings accounts. College Expenses: Seven Ways to Save on an Education Many people graduate from college owing thousands of dollars in student loans. It isn't uncommon for students to graduate owing $30,000 to $40,000. Risky Business: You May Not be as Daring as You Think I thought I was through with exams when I finished college. Then my financial adviser (a. Stretching Your Grocery Dollars Shopping for groceries is an inevitable fact of our ever busy lives. We may imagine that we are saving time by dashing in, roaming the aisles and throwing whatever looks good into the cart. Developing a budget? Watch out for Those Budget-Bursting Gremlins If you've developed a household budget to get your spending back in line or to just reduce stress, good for you! Creating and sticking to a budget isn't easy by all means. But it represents the best way by far to manage your finances so you can relax and worry about other things. Top 10+ Ways to Jumpstart your New Year's Finances! Of course, these don't have to be done in any particular order! Just pick one or two that particularly apply to your situation. * Create your 2005 filing system. 10 Money-Saving Tips 1. If you have your haircut every 3 weeks, try going 4 or 5 weeks in between haircuts. The Origins of Check Writing People haven't always written checks to buy goods and services. But you know that right? So how did people transfer money from one place to another in times of old?In ancient times the most popular form of money exchange was the trade. Financial Security 1) HOW TO LOOK FOR A JOBA) The Chronological Curriculum:1. First and foremost you have to be able to write an effective resume or curriculum. Saving Money On Gasoline For Your Automobile The gas that we fill our tanks with every week adds up to be quite an expensive bill over the months and years. Thirty dollars a week in gas adds up to over $1500 a year. Creating A Household Budget Creating a budget can be a very difficult task. Although we as consumers know that we need to pay our bills, buy our necessities, and put money away for savings, we don't really know how to start. 5 Ways to Absolutely Destroy Your Finances! Ben Stein has a book called How to Ruin Your Finances. To be honest, I'm not sure an entire book is needed on the subject-there are some fairly quick and easy ways to accomplish the task. If All Things Are Possible, Why Cant I Balance My Checkbook? For me, the most terrible time of each month is the day our bank statement comes. We commonly call it BSS (Bank Statement Syndrome). Understanding Your Finances Can Give You Power And Choice What is finance and what do you need to know? Finance can mean different things. It may refer to your personal financial situation. How to Choose the Right Bank for Your Online Business You should thoroughly consider your business needs when selecting a financial institution or bank for your small/home business. You may want to consider the following points:- The types of products and services that are offered. How to Attain Your Dreams on a Single Income If you recently became a single parent and see your dreams being washed away because you feel all alone, you aren't alone. There are single parents that face future endeavors alone like dating again, living on one income, and buying the home they've always imagined. Budgeting Tips to Save Real Money Sticking to a budget can be difficult, but with so many demands on your finances you have to be extra cautious. TV ads are constantly bombarding the airwaves with messages that you need to buy this or you must have that. Retirement Income Needs---Less Than You Think? It is widely written that you need 75% of your present income to maintain your present life-style in retirement. If you make 100 thousand now, figure 75 thousand in retirement.
|
| home | site map | Privacy Policy |
| © 2006 |
