How Much Is That Baby In The Window?

By: Thomas Martucci

How Much is That Baby in the Window? When you are looking at your newborn baby through the glass in the hospital nursery, we hope that you had put some thought into how much a baby costs each year. Have you adjusted the family budget to include the additional expenses of a child? The unfortunate fact is that the majority of people have not really thought about the cost or attempted to budget accordingly. The US department of Agriculture reported that the yearly cost of raising a child varies depending on the child’s age and the household income. The report states that the yearly cost through age 17 (not including college education) will range from $6,490 to $7,560 for low-income families, $9,030 to $10,140 for middle-income families and $13,410 to $14, 670 for high-income families. For most of us, having a child will cost anywhere from $500 to $950 per month. This sudden increase in expenses can put a tremendous strain on anyone’s personal finances. You should take the initiative to prepare ahead of time. Even an unplanned pregnancy gives approximately 9 months for a family to prepare before the baby comes. That should be plenty of time to develop a budget and work out any problems related to that budget. It is surprising how many people have no idea of the additional month in and month out costs associated with a child. This is one of the major reasons why both parents in a two-income household will continue to work after the baby is born. If you do not have a workable budget pre-pregnancy, then it is imperative that you take the nine months to do so. Followings is a list of the first couple steps to take: · Audit your expenses · Determine where you can save money · Decide on what you need to cut back on Doing this before the baby is born will allow you the flexibility to determine if you need to go back to work and time to enjoy your new baby without the financial pressure. Prior planning and budgeting will go a long way in giving you “Financial Peace of Mind”.

Article Source: http://www.articles4free.com

Thomas Martucci started developing the BUDGETkeeper SYSTEM in 1999. As a business owner for 20+ yrs, he understood the need for a budget in business. At home however, it was never a necessity until a financial firestorm hit and made home budgeting a task that had to be done, like it or not. Thomas labored for several years to perfect a home budgeting system that worked for anyone. Visit our website at www.budgetkeepersystem.com for more information about the BUDGETkeeper SYSTEM.

Setting New Financial Goals For The New Year

The first step in managing your money is having financial goals. The New Year is the ideal time to review your financial goals.

Your goals help you to guide your finances on a daily basis. You have something that you are working towards every day. You plan and follow a budget, using your goals as your map.

Without your financial goals, you don't really have the proper motivation to get out there and save. Without a plan, you aren't getting anywhere. If you don't set financial goals, you may never see financial independence.

If you've never set yourself any financial goals, you need to sit down with a pen and paper and look at what you want to accomplish. There is a reason you want to change your finances. Make a list of the things you want.

Your list will probably start with getting out of debt, starting a retirement account, saving to buy a home, and the basics. But don't let that hold you back. Include everything you want to get out of your money to your list. If you want new furniture or a trip to Europe, include them. These are money goals that you can work towards.

Prioritize your list. While getting out of debt is a top priority, going to Europe would be something that could wait. Some goals you will be consistently working on at the same time. Others will wait until something else is accomplished.

Look at each of your goals and set yourself time limits. For example, you may know that you have 25 years to prepare for retirement. You might want to be debt-free in 6 years. Set these goals reasonably and remember that they can always be modified if necessary.

Then start breaking down your goals into short term goals. When you break a large task up into small steps, you are motivated to stay on task. Plus, it simply makes the tasks easier.

For example, if your goal is to get out of debt, your short term goals may be:

• Form a debt master list that lists each debt, contact info, interest rate, payment and balance for each debt you owe. (1 Week)
• Set up a budget and find ways to cut back on spending in order to put more towards monthly debt payments. (3 weeks)
• Call credit cards and request lower rates. If denied, start shopping for lower interest rate cards and transfer balances. (4 Weeks)
• Sell boat and put extra money towards paying off debt #1 on master list.

And so on. These lists can be never ending. As you think of a new "to do," simply add it to the list. Remember, things are set in stone. Management means that you are flexible, yet dedicated.
Once your goals are set, you need to review them often. Keep them in front of you constantly. Every time you pay bills or balance your accounts, you should look to see if you are working towards your goals. Keep them in mind. If you find that you aren't making progress on a goal, you should evaluate why you are failing and make the changes that are necessary.

Having goals helps you to stay on the right track financially. They are essential when you are looking towards financial freedom. But you must work towards them. Don't just set them and forget them. Review and revise as needed.

Martin Lukac http://www.MartinLukac.com , represents http://www.RateEmpire.com , an Internet consumer banking marketplace. RateEmpire.com is a destination site of personal finance, investing, taxes and mortgage rates. RateEmpire.com provides mortgage guides and financial rates and information. RateEmpire.com also operates a financial portal #1 American Financial, found at http://www.1AmericanFinancial.com

Article Source: http://EzineArticles.com/?expert=Martin_Lukac

When Not To Use A Credit Card

By: Michael D. Strauss

Credit cards are a great convenience in our everyday lives, allowing us to easily buy products online and by telephone, and freeing us from having to carry large amounts of cash when making purchases in the bricks and mortar world. However, there's a potential dark side to plastic, with some unfortunate account holders getting out of their depth and building up debts that become a problem and cause of worry.

This is obviously a situation that's best avoided, and knowing when it's a bad idea to use your card can help you avoid getting into difficulty.

- Withdrawing cash at ATMs

Most cash machines these days will let you draw out cash using your credit card. This might seem an attractive option if you're short of cash towards the end of the month, but it's a bad idea for two reasons. Firstly, cash withdrawals will attract a fee of a small percentage of the amount you withdraw. This in itself makes it an expensive way of getting your hands on cash, but advances are also usually charged at a much higher rate of interest than purchases.

What's more, under a system known as 'allocation of payments', the repayments you make to your account are applied first to the parts of your debt which attract the lowest rate of interest. This means that so long as you are carrying some debt from purchases, your cash withdrawals will sit in the background, being charged a high rate of interest, and never getting any smaller.

- Credit card checks

These allow you to use your credit cards in situations where you normally can't, such as paying a bill by post. However, the interest rate charged on them can be as high or even higher than with cash withdrawals. This means you should avoid them for the same reasons, as given above.

- Covering the cost of everyday bills

Paying your energy bills, for example, using your card is convenient and easy, but is only a good idea if you repay the debt in your next payment. If you're using your card because you can't afford to pay the bill, this is a clear sign that you need to take a harder look at your personal budget.

- Expensive impulse purchases

Of course, we all like to treat ourselves from time to time, and no one would begrudge that. However, before handing over your card, bear in mind that the interest you'll pay over the months it takes to repay the debt will make your impulse buy much more expensive than it appears. Is it still worth it?

- To make repayments on other debt

Credit cards aren't usually the cheapest kind of borrowing available, so you should never use your card to service another, cheaper debt. The only exception to this is if you make use of a balance transfer facility, either to get a 0% rate for a limited number of months, or to lock in a permanently low rate.

As we can see, most of the above advice is simply common sense, but following these rules will give you the best chance of staying in control of your credit card, and avoiding running up unneccessary or excessive debts.

Article Source: http://www.articles4free.com
Michael writes for Credit Card Sense UK, where you can read reviews of credit cards including balance transfer cards and low rate cards.

Money Management For Couples

By Joseph Kenny

Foremost among the reasons that lead to marital discord are financial issues. Most couples are unable to or find it extremely difficult to broach the topic openly and honestly. Although the reasons may be different for each couple, being disorganized and unable to communicate are common.

In order to avoid serious consequences it is necessary to for couples to implement the art of budgeting and money management. Couples should avoid conflict over purchases made by each other and learn to respect each other’s opinions.

The initial step is to sit down and discuss the income and expenditure. If there is a lack of communication, which is the case most of the time, this discussion could end in a heated argument. It is important to decide on a strategy before hand, to prevent an ugly situation. For example, get up and drink a glass of water, take a few deep breaths and go for a short walk and then resume the dialogue or invite a friend to be a part of the discussion.

Make a list of all the bills that are pending and the amounts, highlighting the dates on which they need to be paid. Compare this with the joint income and in case of inadequate funds, try to find ways to reduce expenditure or increase income.

Document all facts and figures so that they are easily available to your partner. Make a separate file for documents and papers related to insurance payments, credit card statements, car installments, monthly mortgage, utility bills and expenses. Remove them from the file only when they are paid. Decide on a common place accessible to both, to keep checkbooks, receipts and all relevant financial information. If there have been withdrawals from the joint account, each partner should let the other know the reason.

Such discussions should be scheduled regularly. Financial planning should be an essential part of the discussions. Financial issues become stressful if not handled with care. Make a plan to ensure that both of you take turns to maintain checkbooks, file taxes and track investments. This will allow each partner to be aware of the financial details. Discuss and create a budget to suit both of you.

Try to visualize finances for the next five or ten years. Large amounts of money are required for buying a house or a new car. The different ways in which you could save for these purchases should be discussed openly.

When you set your goals, devise a strategy to achieve them. The plans would mainly comprise of eliminating debt and setting up a savings plan. One excellent way would be to save a certain percentage of the monthly income in a tax deferred account. You can also save and invest in securities and bonds.

Financial mismanagement is generally a key factor in wrecking a happy marriage. In order to keep finances on the right track, proper communication is essential. Regular discussions and mutual decisions on the family budget and savings are sure ways to maintain the harmony among couples.

About the Author:
Joe Kenny writes for CardGuide.co.uk, offering UK credit cards, visit them today to compare credit cards.Visit today: http://www.cardguide.co.uk/

Holiday Spending Tips - Ten Ways To Keep From Having A Holiday Spending Hangover

By Kristine McKinley

Ah the holidays a time for parties, over eating, and over spending. Americans routinely overspend during the holidays, often resulting in increasing credit card debt to go along with that increasing waistline from too much pumpkin pie.

The holidays are stressful enough. Don't add to that stress by overspending your holiday budget. Here are ten tips to help you save time, money and stress this shopping season:

1. Make a list. Decide how much you can afford to spend this year and write it down. Decide who you want to buy for, and how much you want to spend on each person. Take this list with you when you go shopping to ensure that you dont buy on impulse or exceed your spending limit. Also, dont forget to include wrapping paper, decorations and shipping costs. These can add up fast!

2. Pay cash for your holiday gifts. Its much harder to spend cash than credit, so this tip alone could save you hundreds of dollars this holiday season. Also, avoid credit card offers or store charge card offers that offer you a discount if you sign up. These cards usually have high interest rates, and could end up costing much more in the long run than the discount you receive when you sign up for the card.

3. Do your shopping online this year. Buying online could result in discounts not available in stores. Just remember to include the shipping cost when buying online. Even if you dont actually buy online, the time you can save by doing comparison shopping before you go to the malls could be invaluable.

4. Have a Secret Santa gift exchange, where you put names in a hat and each person draws one name to purchase for. If you have a large family, this could mean tremendous savings! You should set a dollar limit so each person knows how much to spend. That way no one overspends and relatives with smaller budgets wont feel bad about not spending a fortune on a gift.

5. Another alternative for those with large families is to do a group gift. Have several relatives go in on one big gift instead of each person buying a separate gift. You will probably all save money and you can buy the recipient one big, cool gift that they really want.

6. Start early! Shopping early allows you to comparison shop and to catch pre-holiday sales, which could mean huge savings. This also curbs impulse shopping, which can be very expensive. Another benefit to shopping early is lower shipping costs if you need to mail a gift. Waiting til the last minute can be expensive because youre more likely to pay full price for the gift, and you may have to pay extra to ship it if you want to guarantee it arrives in time.

7. Make your holiday gifts. If you have creative talents, such as cooking, crafts, etc., making your own gifts can be very special. If youre not very creative, consider giving your time. Offers to baby-sit or to do something special for someone can be very personal and appreciated gifts. How many parents do you know who wouldnt love to have free babysitting?

8. Purchase wrapping paper, holiday cards and other decorations right after the holidays. Seasonal items are usually offered at deep discounts after the holiday, and they never go out of style. Stock up on clearance-priced items for next year, this year!

9. If you'll be traveling this holiday season, book your travel plans early. Airline flights, train tickets and bus tickets usually go up significantly during the holidays, so booking your travel plans early can save you money and stress.

10. Start a Christmas fund in January for next years shopping. Many credit unions and banks offer special accounts just for this purpose. A CD is another great way to save for next years holiday expenses. It never hurts to sock away a little money every month between now and the next holiday season. You'll earn a little interest and you'll have cash to spend on your holiday gifts and other expenses when the holidays roll around.

About the Author:
Kristine A McKinley, CPA, and Certified Financial Planner, offers fee-only financial planning. Learn how improving your credit score can save you money with our free ecourse Boost Your Credit Score in Five Easy Steps. http://beacon-advisor.com/e-course.asp

Understanding The Basic Concepts Of Debt

By Hazel Leong

Remember: Running away from your creditors is not the answer. It is not a solution, and may in fact lead you to bigger problems. If you are having trouble paying off your debts, address this immediately with your creditors.

By accelerating the payment structure on your loan, the life of the loan is reduced:
In a normal 30 year fixed rate loan situation, your monthly payment is applied towards principle and interest. It is amortized over the course of 30 years.

In national accounting debts are added according to those who are indebted. Household debt is the debt held by households. "National" or Public debt is the debt held by the various governmental institutions (federal government, states, cities ...). Business debt is the debt held by businesses.

For many Americans debt is an overwhelming problem, a stressor that can quickly take hold of ones life. When there are bills attached to house, boat, automobiles, college tuition, and daycare, its not hard to imagine that many folks can quickly be swept under the current of spending which can unexpectedly whirl into deep debt.

Understanding the basic concepts of debt

Reduce debts today for a better life! Budgeting is an important aspect of living and a person who knows how to budget will go a long way in this commercialized society. Budgeting has a lot to do with keeping the expenses less than the total income of the household. Those who are very good at budgeting can even come up with savings even if they have meager incomes. The problem sets in when a person fails to make an efficient financial plan and his expenses exceeds his earnings. When this happens, a person has no choice but to borrow money to make up for his financial deficiencies. Borrowing once or twice because of a mismanaged financial plan is normal but when borrowing becomes a regular thing then that can put a person in serious debt problems.

A person who borrows money from another is said to be in debt. The debts of a person can be minimal or it can reach up to millions depending on the credit limits of such person. Sometimes, a person who has assets but isn't liquid can use these assets to get cash. Under this term, the person can be indebted for an amount mess or more than his assets.

There are laws which provide that a person can never be forced to render services as payment for his debts. This is already called undue servitude which is prohibited by the laws of some countries. However, there are situations when the person who is in debt opts to settle his obligation by rendering his services. This can happen if a person is so talented in his craft like painting and he opts to pay for his debts by creating a painting of the creditor or the assignee of the creditor. Sometimes, a person can pay his debts gradually or on an installment basis.

When a person dies, the law has provided for a hierarchy of preferences in the payment of such debts. Of course, payment of taxes to the government will always come first. The second priority for debt payments includes funeral expenses of the deceased and the payment for the wages of people.

Most creditors want the money and will extend your time to repay the debt, since they do not want to go through the hassle that comes along with reporting you. Most creditors want their clients to return and believe that if they give you a chance you will repay your debt and open a new account. All of the debt that an individuals owes appears on a credit report. Credit repots are used by financial institutions when a loan has been requested.

The UK attitude toward debt has received a major shift over the past few years. Where once the UK was seen as a nation that held up thrift as being virtue and considered debt a vice, it has now changed to owing 1.3 trillion on mortgages, credit cards and other loans. Find out how long it will take to become debt free and how much you'll pay in interest by making the minimum monthly payments.

There are a number of different types of debt consolidation loans: home equity loan, line of credit, or second mortgage. Debt is really just a simple concept which provides that a person who borrowed something from another is duty bound to pay that debt. However, the concept of debt becomes more complicated with the introduction of other concepts like mortgage, interest rates and other charges. Interest makes most debts double or even triple in amount. More often, the interest rates due for a certain debt is even higher than the principal amount borrowed.

A person who wants to get credit can do so in the form of a loan. A loan can either be secured to unsecured. A secured loan means the debtor borrowed some money and supported by collateral or a security for the loan. The security or collateral can come in the form of a house and lot, a car or any asset of the debtor. An unsecured loan means otherwise.

Most creditors require a security before granting a loan because it gives them something to hold on to or to forfeit in case the debtor defaults in payment. When the debtor fails to pay the debt within the agreed time frame then the creditor can foreclose the security or the collateral. However, having an unsecured loan doesn't mean that the debtor can renege on his debts. When the debtor fails to pay his loans, the creditor can still run after him by filing a case in court. When this happens, the debtor who has no cash can sell some of his assets to pay for his outstanding loan.

Being in debt is common even for the rich and the famous, the only difference between them and the common people is that their debts can be in the millions since they have more assets to support their loan. Unsecured loans most often have higher interest rates to make up for the lack of security. Even third world countries are indebted to more developed countries. However, the debts of a country can go on forever because they keep on paying their loan but they also get new credits as their credit ratings go up.

It may be more convenient to make one payment rather than several. Or you can improve your cash flow in the short term by reducing monthly outgoings. But this may cost you more over time because you are paying the debt off over a longer period of time.

Interest rates for credit card debt consolidation loans through traditional lenders may be based on your credit score. If high, you are likely to get a credit card debt consolidation loan at a lower interest rate.

The prospects of managing financial obligations have just gotten worse, as Congress has passed legislation that will make bankruptcy filings more difficult than ever.

Debt Elimination tips shows how Millions of Americans are living on the edge of financial disaster surviving only on the hope of next week's paycheck. The average American is dying under a load of debt, with little or nothing building in the bank or in investments.

About the Author:
Debt is a hard thing to live with, reduce debts today!

Holiday Shopping Without Debt

By: Thomas Martucci

It would be nice to wake up after the holiday season without dreading the receipt of our January credit card statements. Don’t you wonder how your parents and grandparents paid for holiday gifts before credit cards? Although my parents were not rich, there were always presents at Christmas. How did they do it? Were they better at budgeting than us?

As I was pondering this notion, it came to me. Christmas clubs! My parents had a coupon book that was brought to the bank each week and they deposited $5 or $10 and that week’s coupon got stamped. They would start the process in November and then in the beginning of the following November they would get a check from the bank for whatever was saved during that year. That is how my parents and grandparents paid for Christmas presents. They knew exactly how much money they had available for presents and they didn’t have to worry about that dreaded January credit card statement.

It used to be that you could walk into a bank any time of the year and see advertisements to open up your Christmas club account. “It’s never to early to start thinking about the holidays” or “It’s never to late to open your Christmas club”. Why would banks stop advertising this service to people? They have not stopped offering it but they have stopped promoting it. Banks stopped promoting these accounts because they would rather see consumers use credit cards with which they make money rather than you use a savings account with which they pay you.

As a side note: in discussing this with a group of colleagues, we’ve come to the realization that the Christmas club was how the Friday after Thanksgiving became the biggest shopping day of the year. All the retailers were aware that people just received their Christmas club checks and they wanted to be sure it was spent in their stores.

There is a way to manage your money for the holiday season without going into debt and taking 6 months to pay it off. There is not much you could do for this season, however now is the perfect time to start thinking about next season. The first step is to determine the total amount of money you will spend on next season’s holiday gifts. Then you should contact your local bank and inquire about a traditional Christmas club or similar account.

Seventy five percent of banks we contacted offer an automatic transfer holiday club account even though they don’t advertise it. You choose the amount and the transfer schedule and your money is automatically taken out of your checking account and put into the club account. When the middle of October hits, the money is then transferred back into your checking account or you are mailed a check. Today’s holiday club accounts are a modern twist on an old fashion way of saving. Next time you think your parents are behind the times in their thinking, remember that they understand the basic principal “Cash is King”.

Opening up a holiday club account is the first step to financial freedom next season. You will have the cash ready for all your gifts because you took the effort and planned ahead. Next holiday season will be relaxing and joyful because you don’t have to worry about that January credit card statement. Remember: Cash is King and credit cards are the number one budget killer!

Article Source: http://www.articles4free.com

Thomas Martucci started developing the BUDGETkeeper SYSTEM in 1999. As a business owner for 20+ yrs, he understood the need for a budget in business. At home however, it was never a necessity until a financial firestorm hit and made home budgeting a task that had to be done, like it or not. Thomas labored for several years to perfect a home budgeting system that worked for anyone. Visit our website at www.budgetkeepersystem.com for more information about the BUDGETkeeper SYSTEM.

Creating A Budget

By Joseph Kenny

Many people do not consider the importance of a budget. They indulge in spending according to their earning and do not leave room for emergencies. This usually ends up in the incurring of debts and sometimes, personal bankruptcy. A budget helps to counter these consequences.

The essential calculations in a budget are income and expenditure. The purpose of a budget is to ensure that the expenses do not exceed the income and also provide for savings for the future.

A budget needs to be documented in the form of a chart or table. This needs to be easily comprehensible and provide a quick summing up of the relevant details. The chart needs to effectively reflect the different heads of expenditure. Suggested heads are housing and utilities, entertainment, health and beauty, transportation, communication and household. These can be further subdivided as follows:

Housing and utilities
- Mortgage payment or rent
- Insurance
- Taxes and electricity
- Natural gas
- Water and garbage pick up

Entertainment
- Cable television or satellite service
- Internet access
- Dining out
- Bars clubs
- Sporting events, parties, lessons and recitals

Health and Beauty
- Hair-cuts, perms etc.
- Make-up
- Medical, dental, vision, weight loss, diet products
- Nutritional supplements

Transportation
- Car payments, insurance
- Gas
- Routine maintenance, repairs
- Air travel
- Rental cars, public transportation

Communication
- Telephone
- Cellular phone
- Voice mail

Household
– Groceries
- Cleaning supplies
- Laundry, dry cleaning
- Home improvement Projects, towels, linens

Others
- Credit card payments
- Other loan payments
- Child care, items for baby/elderly
- Allowances for children, book clubs, magazines, music, etc., fast food
- Investments, vacation, spending money, donations to church or charity
- Gifts (Christmas, birthdays, anniversary, etc.)
- Emergency fund
- Cigarettes.

If you have any other expenses that are not covered, you could add them to the list.

Next, try to reflect all expenses on a monthly calculation. For example, if you pay yearly taxes, calculate the monthly expense by dividing the yearly amount by twelve. Having done this, add up all the figures to arrive at the total monthly expense figure. Then subtract this amount from your take home salary amount. If you find the remainder in negative, you need to look for expenses where you ought to cut down. For example, if your take home salary is $1000 and your expenses total to $1150, you would need to trim down $150 each month, from the expenses.

If you need to cut down on your expenses, you would be the best judge to decide where to make the changes. However, it would be prudent to cut back on the extra subscription channels of the television. If you are smoker, cut down on smoking instead. Take home cooked lunch to office instead of eating fast food. Economize on power consumption by avoiding unnecessary use of the air conditioner and heating and make less use of the phone.

Creating a budget is absolutely necessary to manage your finances and is not dependent on the size of your income. It helps to prevent overspending and personal bankruptcy, allowing you keep track of your income and expenditure.

About the Author:
Joe Kenny writes for SelectLoans.co.uk, a bad credit loans comparison site, visit us today for information on all loan topics including secured loans and links to leading UK providers.Our Site: http://www.selectloans.co.uk/

Saving With The Lump Sum Method

By Martin Lukac


There are so many things that we need to be saving for. You need to have an emergency savings, special goals saving, long term saving and all the other savings accounts for your future. These savings can result in a lot of different accounts. Besides, most people find that they have a hard time getting to where they need to be with just one savings, not five.

Most advisors will tell you to spread your savings out among all of your different needs. This can result in a lot of savings accounts. And yet, you still have the same amount of money.

The lump savings method might be a good solution for you. You just open one savings account. It can be low interest, but needs to be fairly available. Put all of your savings accounts into it for the entire month (except for retirement investments).

How much do you need to put in it? Take all of your goals into consideration. You know that you need an emergency savings. If you are already have it then don't worry about it. If you don't, set yourself a time limit and decide how much a month you should invest. Also consider all of your non-monthly bills. These annual bills can really take a bite out of your budget. For example, if you know that you spend $300 a year during the winter on propane, divide that amount by 12 and put $25 a month towards your propane savings.

Add all the monthly savings up and then put this in your account for the month. I suggest that you keep a list of how much is going towards each savings goal. After a few months, look at what you have saved. Are you close enough to your emergency savings to skip the rest of the categories and put it all towards that this month? Do you need to change some amounts?

This is where you list comes in handy. Put things in order of priority for you. Choose what it most necessary and put a little more towards it. If you can, devote all you can and then do the others in the next few months. Once you have your emergency fund built up, you can take that out of the savings account and put it in another account and forget about it. Then you move on to concentrating on other savings goals.

This really helps you save time in that you aren't writing out five checks to your different savings accounts and trying to manage it all. If you stick with it, the money will be there. You just have to keep track of what you need to save and what you are saving.

This method isn't for everyone. But those with little time could actually benefit from it. Many people find it easier to keep saving when they see the lump sum growing, as opposed to a lot of little accounts barely moving up.

The idea is that you are saving. No matter the method, the saving is the important part. Do it regularly and keep with it. In the end, you will find that it really pays off.

Martin Lukac represents http://www.RateEmpire.com, an Internet consumer banking marketplace. RateEmpire.com is a destination site of personal finance, investing, taxes and mortgage rates. RateEmpire.com provides mortgage guides and financial rates and information. RateEmpire.com also operates a financial portal #1 American Financial, found at http://www.1AmericanFinancial.com and San Diego loan portal http://www.LendingSanDiego.com

Personal Budget Planning Tips

By Sarah Freeland

Your personal money management is the key to your financial success; your method of reaching your goals and dreams. No one likes the term budgeting, but without it, you won’t know if you are getting the most from your income. Everyone wants to pay all their bills on time. Successful debt and asset management is a source of pride and of good credit. All of us want good credit whether we use it or not. Unless you have unlimited funds to spend however you wish, you will need a personal budget to pay off debts. Budgeting your money can be a difficult process.

In order to create a household budget, you must include all your monthly and yearly bills. You must also include your spending money, savings goals, and retirement funding. It doesn’t matter how much money you make; it’s how you spend it. A personal or household budget will help you make payments on time, provided you follow the plan.

When you don’t follow a debt management program, your debt may overtake your income and then you are forced to make late payments on bills or no payments at all because you don’t have the money. You can’t just spend money and hope you have enough for your bills. You must spend within a budget.

You can prepare a budget by using budgeting software on your computer. The program will ask you the same questions that a personal finance advisor asks during a financial planning interview. The questions concern your expenses, your spending habits, and retirement goals. They may include tips on debt consolidation and reasonable cash flow. Or you can choose a financial planner to help you with your personal finance concerns.

For more on debt management and credit repair visit the resource center at DebtControlExperts.com. If you are in the market for a home equity loan, auto loan or mortgage, visit FundingMarketplace.com for financing options.

Using Cash to Stay Within a Budget

By: Tammy Paquin


It’s a well established fact that when people purchase things using any payment form OTHER THAN cash, they tend to spend more money. I always figured that this fact didn't apply to me because I was a careful shopper. BUT, can I just say that is NOT true!!!

I generally keep to a budget of $300 per month for five of us (how I do it is another article). I would make my grocery list and keep my budget in the back of my mind. I would always use my debit card for shopping and never paid cash.

Many months, I would think that I had stayed within my budget but would quickly tally things up and realize I had gone over. On other months, I would come in under my budget, but I never had anything to show for it, like rolling that saved money over into a vacation fund, or putting a little extra principal down on a loan.

This month, I decided to go to a “cash” only or envelope system for my grocery money and conduct a little experiment, with ME as the guinea pig. I placed my grocery budget money for two weeks ($150) into an envelope and then went shopping with my grocery list in hand. I honestly thought I would never notice a difference in how I shopped, because hey, I was a careful shopper, right?

What an eye-opening experience! At first, I went along shopping away and noticing a few specials I had missed and threw those in as well. Then, the realization hit me. I had only so much money! I couldn’t just rely on my debit card! I took out my calculator and began adding up my purchases, keeping the fact that this $150 had to go two weeks. I put back a few items that were priced well, but not well enough. I cut down on how much I stocked up on a few other items. It wasn’t like we NEEDED them, but I wanted them. What I wanted and needed more, though, was to stay within my budget.

As the number on the calculator grew, I stopped going down EACH aisle. I looked at my list of needs and went down JUST the aisles I had to, thus avoiding those sale signs that lured me to grab unneeded items. I would NOT be trapped into buying something that was NOT a need and NOT on my list. I had a hardcore and physical reminder of my budget-cash!

At the end of the trip, I had a rough idea of my bill, without tax. Two points to make about the check out. Paying cash and physically counting out my hard-earned dollars HURT. It sure made me think about each thing in those bags. I also was very careful to check my receipt and make sure I wasn’t paying out too much of my hard-earned cash. My cashier had difficulty completing a transaction in my groceries involving a rain check. When I examined by receipt, I found I was overcharged by $8.47! A quick trip to the courtesy desk rectified the situation, and placing $8.47 in cash back INTO my envelope felt good.

So, although my experiment is still in its first weeks, I can safely say that I was NOT immune to the fact that shoppers who pay with debit, credit and check buy more than cash shoppers. I also feel a great satisfaction knowing that on months when I come in lower than my $300 budget, I can either bank the extra, roll it over for months when I want or need to do bigger stock up trips, OR make a principal only payment on a loan. There is something better about physically handling your cash versus moving it around electronically through a debit card or check.

So, is there a part of your budget that might benefit from paying cash? The morning coffee trip, an expensive vice like smoking, clothes shopping? Think about it! Paying cash might be the way to reign in some expenses.

Article Source: http://www.content.onlypunjab.com

Tammy Paquin is a work from home mom of 3 boys and the publisher of Frugal-Families, online resources and support for your family, frugality, finances and budgeting.

Controlling your Cash Flow

By adam10x

Are you looking for a way to gain control of your personal finances and implement a budget that will get you back on the road to financial success? Great! And remember there is no better time to start than now. Like anything in life, before you can become financially stable you must understand the fundamentals of personal finance. Gaining control of your personal finances does not have to be hard, in fact some even find the road back to financial stability both challenging and satisfying. Don’t forget, where there is a will there is a way. You can do it!

One of the basic, yet important concepts behind the success of a financially wealthy individual is his/her basic understanding of a cash flow. The term merely refers to the flow of incoming and outgoing cash. An inflow refers to any money considered income, whereas an outflow refers to anything recognized as an expense. Perhaps a simple example can best illustrate this basic concept.

Identifying Inflows and Outflows of Cash
Example: Sara, an extremely mature 13 year old, has just washed the dishes for her father, Dee, who has promised to pay her $10 for her services for a week. Having fulfilled her duty and received her payment, Sara quickly hops on her bike and rides to the local grocery story, where she purchases some chocolate milk, a donut, and a pack of gum, all for $5 dollars. Sara hands the clerk $5 dollars and leaves the store happily with her loot.

In this example what is the cash flow? Remember our definition of the term. There exists a flow of money when cash comes in, or is received, as well as when cash goes out, or is spent. Thus, in this scenario the cash flow can be broken down into two streams, namely Sara’s income and her expenses. Her income amounted to $10, representing a cash inflow and her expenses incurred totaled $5, representing her cash outflow.

Plan of Action
The reason this is so important is gaining control of one’s financial wellbeing typically revolves around handling inflows and outflows of money appropriately. It is easy to see how trouble can arise quickly if one is consistently spending more money then is made. When expenses exceed income, debt is incurred. The simple yet vital key to financial stability is no secret at all. Spend less than you make.

This method proves to be a success time after time, even when prior debts exist. By spending less than is made, a positive cash flow is created which can in turn be applied against existing debts. Slowly but surely, these small payments on existing debts will eliminate the debt and amount to huge savings. One can then take advantage of living debt free by allocating to savings the payments previously applied to the existing debt. Again, slowly but surely, those savings will begin to add up to quite a nice little nest egg for retirement.

Conclusion
The principles to financial stability are extremely simple and basic, but nonetheless true. Realizing a positive cash flow requires great dedication and commitment as well as strict adherence to a personal budget which minimizes expenses and maximizes savings. Becoming financially wealthy does not happen overnight. Rather it requires time and persistence, even a minute by minute plan of action to realize such wealth and make those millions you have always dreamed of.

The sooner positive financial habits are formed, like saving money, maintaining a positive cash flow, or investing wisely, the sooner those habits will become a part of who you are and lead you down the road to financial success.

Adam Smith an internet marketer specializing in affiliate program management for 10Xmarketing.com. More information on controlling your cash flow is available at OneMinuteMillionaire.com.