Setting and Maintaining a Budget.

 

In today’s times it can be increasingly difficult in maintaining a budget you set. Prices are increasing at an alarming rate on almost everything we purchase and frequently. This is why it is more important than ever to utilize an online budget calculator to follow and maintain so we are not fully decreasing our finances. Throughout this article we will explain to you how to set a budget and actually be able to stick with it.

 

One of the ways to look at a budget is that it is a necessary evil, we don’t like having one, but we must have one to survive and not become broke. A budget is the best and only way to get a handle on your spending and have it be used how you actually want it to be.

 

In order to create a budget you must follow a few steps completely.

  1. Figure out exactly how you are spending your money now
  2. Take a look over your current spending trend and set realistic goals that will also take into account long term financial goals.
  3. Find a good software program for budgeting that you understand how to use. Don’t go too fancy, the simple programs can help you greatly.

 

Once you have taken the first few steps in creating a budget there are a few other things you may want to consider. First because you will be constantly monitoring your spending habits, it is important not to drive yourself crazy with watching where money is coming and going. Take a look over how many times you are hitting up the ATM. The ATM generates and added fee that can end up adding up.

 

Now it’s time to review more of your spending habits

Maybe not the funniest part of a budget, but you really need to address your spending habits. If you find that you are going over more than your income covers, then chances are you are spending some on luxuries, rather than necessities. Take a look over what you really need versus what you can actually live without, and try eliminating the unnecessary luxuries in your life.

 

Tithing

One of the least talked about aspects in setting up a budget. Try tithing yourself to help save money. Set a goal to spend no more than 90% of your income, this way you can put 10% of your own income in savings to save up for future purchases or emergencies.

 

Last but not least, set realistic budgeting goals

Don’t expect yourself to start off with unrealistic expectations. It’s just not that simple with budgeting. It is important to learn how to set realistic goals for yourself and cut corners where you can cut them. Don’t try to strip yourself of all your entertainment as well, just keep it simple and affordable. Knowing where you stand financially is a gift. It allows for all sorts of great things to happen, such as buying a property off the plan (or in the pre-sale stages) and getting a discount.

 

Having a budget can help many people drastically in the end. However it is always not so easy and simple to stick to in the beginning  but in time with determination and motivation you can have a realistic budget that works for you and your family.

Simple Tips for Keeping Organized Finances

 

 

Keep your personal finances organized, otherwise it is easy to let them get out of control. If you find yourself in this position, you have to be willing to take the necessary steps in order to get back on the right track. Below I will give you some advice on turning your finances around and something you can be proud of.

Do not fall victim to credit repair organizations that claim they can improve your credit history. Such a practice is absolutely illegal, and these companies can run off with your money, and won’t do a thing to actually help your credit score.  Everyone’s credit history and situation is unique to that person, to guarantee success would be a fraud and no one should make this promise.

Make sure you get those most out of your flexible spending account. It can help pay for medical and daycare bills, and can cost less money in the long run because of tax-free funding. Flex spending accounts permit you to place pretax dollars into an account to pay for these types of expenses. Just make sure you keep good records for tax time!

Keep an envelope with you at all times when you go out. Use this to store all of your receipts and business cards. Keep them around so that you have a paper trail. Your receipts can be used to compare statements in the event you are charged twice for a transaction.  Credit card statements are great for this as well, but sometimes we want to use cash instead.

An emergency fund can be created by having a set amount of money from each paycheck put into a separate savings account. If you have the money automatically transferred to a savings account, you won’t miss it.  Some finance professionals will tell you to keep 3 months of income saved, some will tell you 6 months, I say you should have at least a year in this economy.

Keep track of your available funds in your account(s).  When I was young I fell victim to overdraft fees more often than I care to admit.  Keeping your spending in check is a no-brainer, but balancing your checkbook can save you a ton of hassles and money as well.

Most of these tips seem pretty self-explanatory, but it never ceases to amaze me how little people heed this advice.  Stop worrying about debt snowball strategies and credit repair companies, and start paying attention to simple ground rules of personal finance and you will be just fine