These Tips On Budgeting will help you control the most important part of your family financial program...outgo. Almost all financial problems are due to outgo, not income. If you feel you have an income problem, go to Job Search Employment Tips. Chances are, even if it seems you don't make enough, the problem is outgo. This is very good news! Why? I'm glad you asked! It's good news because you can control outgo. That's what this page is all about. We'll show you some tips and tricks that make it easier to control your spending, pay down debt, and save for those big things in your future. Here is a list of the top-selling Family Budget Software.
What Is A Budget? A budget is a spending plan that includes everything you will spend money on. A good budget is a spending plan that includes everything you will spend money on and stays within your income. A wise budget includes everything you will spend money on, savings for a 'rainy day', savings for large purchases, giving, savings for kids, and investment for retirement and still stays within your income. I suspect the wise budget is a bit over the top for you if you're new to budgeting. Caution! No matter how detailed your spending plan is, if it does not include everything you spend money on, or, if it does not address where you will get the money to cover all your expenses, it is not a budget. These Personal Finance Books may help you plan your money and execute your plan.
Why Budget? I suspect you already know why or you wouldn't be reading this. If we don't budget, we lose control of our expenses and can't even figure out where the money went. Worse, yet...we can't figure out where we'll get the money to cover that big bill we forgot was coming. If you have trouble committing to or staying within a budget, take a look at Compulsive Shopping Addiction.
Budgeting Tip 1:
Get the whole picture. Start by collecting all checking account and credit card statements for the last
year. Collect all cash receipts for the last month (or next month if you
don't do this). Don't forget cash spent on co-payments, mocha's, haircuts,
etc. Now collect all receipts for financial contributions to charity,
including Girl Scout cookies, etc. Collect all pay stubs, deposit
receipts, etc.
Budgeting Tip 2: Record the whole
picture. Use all the stuff you collected to record a 'picture' of what you
spent last year (use a pencil and have a big eraser on hand. You can print
and use our Family
Budget Worksheet to make this job easier. Don't be surprised if this
takes a lot of time with a calculator and scratch paper.
Budgeting Tip 3: Check
off the lines on your documents as you account for them in a budget item.
That way you don't put the same thing in more than one item and you don't forget
anything.
Budgeting Tip 4: Formulas:
Convert regular weekly pay to monthly: Weekly Pay x
4.333 = Monthly Pay
Convert bi-weekly pay to monthly: Bi-Weekly Pay x 2.167
= Monthly Pay
Convert annual totals to monthly amounts by dividing the
total by 12.
Budgeting Tip 5: The Family Bills For
Monthly Expenses part of the Worksheet
is just for regular monthly bills, savings and investment. If insurance,
for instance, is billed monthly, it would go here.
Budgeting Tip 6: If
the insurance, however, is billed less often than monthly, the total annual
amount would be divided by 12, and that number would be listed in the Impound
Budget For Non-Monthly Expenses. Don't forget to list the month it's due
to be paid. This 'Impound' section is a powerful and unique tool to save
monthly for all your annual expenses and avoid those nasty surprises.
Budgeting Tip 7: Include
everything you regularly pay cash for in the Cash Budget-Monthly section.
Budgeting Tip 8: After you total
everything, you may be surprised to discover your expenses are larger than your
income. This is normal, I'm sad to say. The amount your expenses
exceed your income is the amount you add to your credit cards and other consumer
credit balances every month. Note: When I did
this the first time I discovered I was spending $ 250 more than my income each
month. If your income is larger than your expenses, the difference
is the amount you can add to savings, etc.
Budgeting Tip 9:
Review your budget worksheet to see if you can spot any errors, to try
and find areas where you feel your spending is excessive, and to consider if any
expenses (maintenance, insurance, taxes, etc.) will increase over the next
year...make necessary adjustments and re-total.
Budgeting Tip 10:
Make sure you keep a savings balance for a "rainy day" that matches 6
months of your net income. After you've accumulated that, you can begin
investing and buying some of those things you just want.
Budgeting Tip 11: Giving or
donating is as important as paying a bill. Give this a try! You should have an amount
designated on your family budget for giving. Even if you don't take part
in a regular charity or church giving program, make giving part of your
budget. There is a great deal of evidence, from 2,900 years ago right up
to the present, that what you give comes back to you multiplied. Do it for
a year and see what happens.
Concluded at Tips On Budgeting-2
Family Finances
Budgeting
Finance Tips
Cancel Credit Christmas
Credit Card Debt Wipeout
Debt
Free Living Help
Debt Elimination Plan
Estate Planning
Gambling
Addiction
Home
Mortgage Basics
Investment-Low Risk
Job Interview Preparation
Job
Interview Tips Sheet
Job
Search Employment
Meaning Of Success
Mortgage Calculator-Free
Resume
Writing Tips
Reverse Home Mortgage
Self Employment Ideas
Shopping Addiction
What Career Is Right?
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