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

How To Simplify Your Living Expenses

By A. Annika Smith

Here's the thing: I'm a New Yorker. And in New York, it is amazingly difficult NOT to spend a lot of money, just on the basics! As a student of Harv Eker, I am trying to limit my expenses to 50% of my after-tax income, and I have to tell you, that is really hard to do. Harv isn't the only one to suggest this either: almost every money-management guru gives the same advice. Simplify your expenses.

The fact is, if you want to become financially free, you must do two things: increase your passive income and decrease your expenses. Once your passive income is equal to or greater than your expenses, you are financially free. The concept is simple enough -- and in other articles I address creating passive income (the easiest and fastest way to do this would be by renting your rooms). But how do you simplify your expenses? Especially when you look around and you don't see a way HOW? Here are a variety of ways you can still live a decent life and be a bit more frugal at the same time.

Food & Toiletries

• By far, making lunch at home was one of my biggest savings! I made lunch and snacks and bought them to work.
• Instead of buying shower gel, go back to soap bars. They last longer and are much cheaper.
• Don't wash your hair every day, and when you do wash your hair, only wash it once. That saves lots of shampoo.
• I made my own coffee at home -- or cut it out altogether and put that money aside in your financial freedom jar. One guru calls that the "latte factor."
• As a nation, we eat out a whole lot more and buy convenience foods to just heat in the microwave -- but these can be expensive. Cooking may take time, but it does save you lots of money.
• Buy generic! I was so opposed to this, and one day I ate some potato chips that my boyfriend bought. Seriously? They didn't taste different from the name brand. Try it. Ok, some things may be non-negotiable, but you'd be surprised what is. Your grocery bill will go way down.
• Take the effort to cut coupons, take advantage of sales, and go to discount warehouses, like Sam's Club or Costco.

Heat & Electricity

• If you don't already have one, get an electric thermostat with a timer, so you can change the temperature automatically during specific times of the day. Lower the temperature when the family is out of the house.
• Use space heaters and lower the heat in the rooms you use. Use an electric blanket at night.
• There is plastic covering you can get at the hardware store and cover your windows. That keeps the heat in the house.
• Make sure your boiler and hot water heater are maintained properly.
• Wear layers of clothing and keep the heat lower.
• Use kitchen and bathroom vents sparingly in the winter
• Replace regular light bulbs with compact fluorescents
• Wash laundry in cold or warm instead of hot
• Use a clothesline instead of using the dryer
• Use a ceiling fan instead of an air conditioner.

Cell Phones, Internet, and Communication Utilities

• Avoid pre-paid cell phones, even if you just want the phone for emergencies, unless you are careful to use a plan with minutes that don't expire. You pay exorbitant rates per minute.
• Never underestimate the minutes your teen may use. Be careful not to get the lowest plan. Constant overages are very expensive overall.
• You don't necessarily need a home phone if you have a cell phone. With free nights, weekends and long distance, you may save considerably. Be careful with phone plans that have low rates, because the taxes add significantly to the bill.
• For your Internet connection, you don't have to get the highest rate of connection speed. For the average user, you won't be able to tell the difference and that can save you $20 a month.
• If you switch to broadband, don't keep your dialup (unless you travel often outside the country or in rural areas). Also, drop paying for AOL. All AOL features are free if you have broadband.

Entertainment

If you really wanted to be extreme about it, you could cut entertainment out altogether. But that's not really practical, so here are some ideas.

• First, if you think FREE, you may not get free, but you do end up with "cheap." Cheap doesn't mean less fun, either. Sometimes you can have MORE fun.
• If you live in a city, just try walking around. In New York, I have found impromptu concerts by street musicians or just sat in the park and people watched. You'd be amazed how much fun you can have!
• Instead of eating out or going to bars with friends, host a potluck at home or just have friends over for drinks. It's much cheaper to buy liquor than to buy drinks at the bar.
• For movies, go to matinees or the $2 movie (some communities have them). Yes, those movies are second-run, but hey, it's worth financial freedom to me. You can also always rent movies.
• Cable. When times are tough, the cable needs to get going. It can get so expensive! If you do need it for the reception, get basic and then rent movies. Buying a great DVD player and renting movies is cheaper than cable in the long run. If you rent rooms in your home like I do, keep the cable -- it's a perk for your tenants that are worth paying for.
• Take your kids to the bookstore and hang out.
• Find free community shows, like Shakespeare in the park or fireworks.
• Take the kids on the subway trip -- as far as you can and go explore. In New York, take the train to Coney Island.
• In the summer, there is always a local food festival or street fair.
• Get your kids involved in a community group, like a theatre. They develop skills, make friends and have fun.

Clothing

• For kids, don't go over the top with the brand names, especially since the kids will grow out of them quickly.
• For adults and older teens, don't buy really trendy clothes that will only last one season. Buy classical fashionable clothing that will last, and get trendy with accessories.
• Buy shirts and ties or blouses and just one suit -- accessorizing is cheaper.
• Buy a few pieces of quality clothing as opposed to lots of cheap clothing. They will last a lot longer.
• This goes without saying, but buy clothing in the off-season and on sale. You will save a ton of money.

Transportation

• A gas saving tip I just learned: put your car in cruise control whenever you can. It has cut my gas bill in HALF.
• If you live in a metropolitan area, try walking around the city as opposed to taking a bus or a train. In New York, you can even get there faster sometimes! :-)
• Maintain your car -- tire pressure, oil changes, everything. Preventative maintenance is way cheaper than repairs.
• Never use cheap gas - use quality gas and the correct octane for your car. It may seem more expensive, but it's cheaper in car repairs in the long run.
• Don't be afraid to walk, even in the winter. It's great exercise and it saves a ton of money. Bring a backpack with you for grocery shopping if you need only a couple of things.

The Change Jar

I have a change jar. Every time I pay for something, I always use bills and get the change. I put the change in the jar. You wouldn't believe how much money you can save! This money could be entertainment money, allowance for the kids, put it in a savings account or saved for emergencies. This change jar has saved my butt many times over the years, and is a great way to have "found" money at the end of the month.

About the Author:
Annika Smith is dedicated to teaching others how to be not only financially free, but also wealthy and happy. Want to be rich? It's easier than you think. Follow the exact path Annika took to massively improve her life by checking free information at http://clues.rentrooms4cash.com.

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

Savings at Your Bank- 5 Ways to Cut Costs

By Deirdre Jones


It seems that no matter where you turn, banks are coming up with fees on top of fees, but that does not mean that you cannot save. The key to saving money at the bank is doing your homework.

Does Your Bank Offer Incentive Programs?
Banking is a competitive industry, and with people becoming more and more fed up, many banks are offering incentives to their customers. For example, Bank of America recently came out with a great little savings program called "Keep the Change". It works in conjunction with your checking account and debit card.

Let's say you use your debit card and spend $2.31. Well, the bank would round this number up to $3.00 and the $.69 would be transferred from your checking to your savings account. It helps you save without any effort on your part, but you must remember that this occurs to avoid overdraft fees in your checking account.

Plus, they match your "Keep the Change" savings at 100% for the first three months and 5% thereafter. You have got to admit that beats that paltry interest many other banks give you. Free money is always great, so take advantage of it.

The point is that you should check to see what incentive programs your bank may offer.

Check Ordering
Never purchase checks directly from the bank. It is always going to be an expensive proposition. There are many companies out there that offer great deals on check orders, such as Check Gallery, Checks in the Mail, Checks Unlimited and many more. You can often pick up 200 checks for as little as $8 or $9. Just do some quick research online and you will be saving in no time.

Credit Unions
Credit Unions often charge much lower fees than standard banks. This may be an option you would like to explore, especially if there are conveniently located branches in your area.

No Fee Checking
Many banks offer some variation of this particular theme. If you qualify, by all means, sign up, but pay attention to the stipulations. Some banks will offer no fee checking if your paycheck is directly deposited into your account. This is a pretty good deal.

Many banks also offer free checking to students. You may want to take advantage of this one, whether you are an undergrad or if you are pursuing post graduate studies.

Some banks offer no fee checking if you maintain a savings account with a specific minimum balance, but charge if you go below this balance. Be careful with this one. The monthly fees are often higher than the fees on regular or basic checking accounts. So if you know that you will constantly dip into your savings, then this may not be such a great deal for you.

ATM Fees
Be sure to choose a bank that has lots of conveniently located ATMs if you visit the ATM frequently. Always try to use your bank's ATM to avoid the ridiculous fees you are charged for accessing your money from an out of network ATM. If you must use another bank's ATM, try to locate one with no surcharge. At least, in this way, you are not charged twice - once by that bank's ATM and once by your bank for using another bank's machine.

There are countless ways of saving money at the bank if you really put your mind to it. So be a smart consumer and be sure to shop around when choosing your bank.

If you would like to discover how to totally eliminate yor debt and reclaim your finances, grab your debt reduction kit today. You will also receive a copy of our exclusive debt reduction software.

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

Practical Ways to Save at the Pump

By: Joseph Hanoa

You can’t do much about gas prices, but you can still save at the pump. Not a bundle of money, but perhaps two or three dollars per fill up. While this may not sound like a lot of money it does add up to as much as $200 per year or more, depending on your driving habits. Who doesn’t want to save at the pump? You know that you do.

Name v. Generic Brand – Perhaps you have long used BP, Exxon, Texaco or some other big name oil company’s gas station over the years. Heck, their gas really isn’t any different now, is it? Well, the “Gas and Go” down the street – you know, the generic “no name” gas station always charges less, as much as a dime less per gallon, but you have avoided them. Well, did you know that many generic stations get their gas from the same place as the Exxons, Mobils, and other big name companies of the world? They certainly do. They just don’t get charged a franchise fee covering advertising and other expenses. So, gas up with a generic and save big.

Premium v. Plus v. Regular – Most pumps have two grades of fuel while some have three: regular, plus and premium running at 87, 89, and 91 or 92 octane. Did you know that most cars will run on regular gas? Therefore, unless your owner’s manual specifically says you must run premium gas, don’t bother – pocket the extra dime or quarter per gallon that you would save.

Ethanol v. Gasoline – If you own one of the millions of vehicles on North American highways that can run on either ethanol or gasoline then you may be in luck. Depending where you live [the Midwest USA for example] and what gas prices are doing at the moment, you could pay as much has 50 cents less per gallon for ethanol. One caveat: your fuel mileage drops by about 20% when filling up with ethanol. Therefore, if the savings per gallon isn’t better than 20%, then don’t bother.

Naturally, driving within the speed limit, avoiding fast starts, and keeping your engine tuned, and tires inflated are other ways to save on gas. Altogether you can do your part to restrict your gas usage without going nuts doing it. Otherwise, opt for a hybrid and hope that you can get some sort of government rebate to justify your purchase.

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

Joseph is the proud owner of Finance Guide, a website that will explain everything you need to know about Personal Budgets. We invite you to visit our site today and see what we have to offer.

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.