budget – Personal Growth Cafe

November 30, 2018February 19, 2018

Creating a Budget You Can Live With

Your family has decided it’s time to create a budget.

Maybe you’re spending too much each month.

Or you may not even know where your money is going.

A budget can help solve both problems.

A budget can also help you get your finances under control so you can get out of debt and find the funds to pay for that new car, a much needed home renovation, or a down payment on a new home.

Once you’ve created your budget, here are some simple strategies to keep it in place:

1. Why did you create your budget? Keep in mind your reason for creating a budget in the first place.

Surely your intention wasn’t to create a budget so strict that there’s no wiggle room for entertainment or an occasional ice cream cone!

Your goal is to be wise about how you spend the money you receive each month.

True, this may mean that you’ve had to cut back on discretionary spending, but the ultimate pay off is being able to do the things you truly want to do.

2. Make it simple. If your budget is too difficult for even a financial genius to understand, you won’t stick with it.

Your budget should be simple enough to understand so you’ll be able to use it and adjust it when necessary.

The easier it is to use and manage, the more likely you’ll be to stick with it.

3. Be realistic. Is your budget realistic for you and your family?

If you’re planning to cut all your expenses at once, you may be trying to do too much too soon.

4. Start out making small changes to how you spend money, instead of broad, sweeping changes that are totally unreasonable.

Small budget changes are easier to maintain than large ones.

Remember, everything in moderation brings the best results.

5. Include short-term goals you can reach quickly. Short-term financial goals can make living with a budget easier.

Perhaps you have several low balance credit cards you’d like to pay off before tackling the higher balanced cards.

You could also work on paying off the credit card with the highest interest first.

Whichever way you choose to pay them off, you’ll need to find extra money each month by cutting down on other expenses.

Here’s an effective plan for paying off your credit cards using short-term goals:

Pay the minimum payment on all credit cards except the one you’re trying to pay off first.

Each month pay a little bit extra in principle for that card. Before long that card will be paid in full.

Contact your credit card company and negotiate better rates.

You’d be surprised to see how willing they may be to adjust the interest rates or payments.

Consider getting a personal loan or line of credit and pay off all high interest credit cards.

You’ll save a bundle in interest payments.

Include long-term goals to work toward. Do you have concrete, long-term goals within your budget?

Have you determined to pay off a high interest, high balance credit card before you go on a long dreamed of vacation?

Put posters or photographs of that destination where you can see them throughout the day.

This will help you stick to your budget when you want to spend money you maybe shouldn’t.

It’s possible to stick to your budget by following these simple strategies.

Remember, however, that once you get your finances under control, it’s not a reason to revert back to old habits.

Following a budget won’t always be easy and there may be times when you have an emergency that makes you deviate from your plan.

If that happens get back on track as soon as you can.

Before you know it, all your sacrifice will have been worth it when you realize your dreams really are within your reach!

What do you prioritize when creating a budget?

Why is it important for you to live within your budget?

Talk about that in the Personal Growth Cafe Community!

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October 20, 2018February 15, 2018

Step-by-Step Ways to Plan a Budget

Using a budget is one of the best ways for you to determine where you stand financially so you can plan for future expenses.

A budget can help you live within your means, get out of debt, and have money available for a new car, vacation, or education.

Planning and using a budget doesn’t have to be complicated.

Plus, once you’ve put your budget into place, it makes spending decisions a snap.

Here’s how to plan your budget, step-by-step:

1. Set goals. Before you begin to plan, it’s important to know what your financial goals are.

Do you want to save for a new home?

Have you always wanted to travel overseas?

Are you thinking about your children’s educational future?

Write down your family’s financial goals and post them where everyone can see them.

This will help you all remain focused on reaching your goals rather than giving in to temptations to buy things you don’t need.

2. Determine income. Figure out how much money you currently have coming into your home.

It’s hard to establish a budget if you don’t know how much money you have at your disposal. This would include:

Employment income for each family member contributing to the budget

Interest earned from money markets, savings accounts, or investments

Inheritances

Any other form of income

3. Figure out your expenses. Write down your family’s expenses.

Listing each bill will help you determine how much money you need to earn each month to reach your financial goals.

List every bill your family has regardless of how often it’s paid.

Group expenses together (insurances, credit cards, etc.) to make them easier to calculate.

Include cash for each day, such as money for gas, lunches, tolls or parking.

4. Include savings. Remember to pay yourself!

Instead of waiting to determine what money is left after paying the monthly bills, include your savings account as a bill and pay it just as you would any other expense.

5. Subtract expenses from income. Add together all income sources and then add together all expenses.

Subtract the expenses from the income, and this will tell you what financial shape your family is in.

6. If your income is greater than your expenses… If you have money left after paying the bills, you may choose to do one of the following:

Put additional money in savings.

Invest the money with the help of a financial planner.

Pay off credit cards or other monthly credit accounts so you can get out of debt.

7. If your expenses are greater than your income… If your expenses are more than your income, you have some decisions to make.

They may not be pleasant, but if you want to get out of the avalanche of debt, changes are necessary.

Here are some changes you may want to make:

If your home is too large for your family, you may want to downsize into a home with cheaper payments.

Do you have, and do you need, more than one vehicle?

If two or more cars are necessary, by all means keep them.

However, you may be able to buy vehicles that are cheaper to own and maintain.

If all the cars aren’t necessary, why not sell the extra ones?

Avoid eating out. You may not think eating out is that expensive, but a family of four can easily spend $40 or more each time they eat out.

That same amount of money can buy groceries for several meals, instead of just one.

Put a hold on credit card spending.

Either cut your credit cards up or put them in a plastic bag filled with water.

Place the bag in the freezer and leave it there.

As you’re able to pay off one credit card, close the account.

Then use the money you spent each month on that bill and add it to your payment for the credit card with the next highest interest rate.

This process accelerates the elimination of your debt.

It’s possible to create a budget you and your family can live with.

By following these step-by-step instructions for planning a budget, you’ll be taking a financial step in the right direction.

Stick to your budget, and before you know it you can be out of debt and saving for something special!

How much of your budget goes to things you want?

How does proper budgeting bring joy to your life?

Talk about that in the Personal Growth Cafe Community!

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November 26, 2017

7 Tips for Staying Within Your Budget

For many people, staying within a budget can be challenging.

If keeping to your budget seems like an insurmountable task, you’ll be happy to know that there are ways to stretch your budget and still enjoy a quality lifestyle.

Some budgets may work well with your lifestyle, while others may not. If you find that one technique is difficult, all is not lost!

Other techniques may be a better fit, which can then lead to the financial freedom you desire.

Consider the following tips for staying within your budget:

1. Put Your Credit Cards Away. You can even freeze your cards in water if it’ll deter you from using them!

It’s so easy to forget the true costs of the things you buy when you just swipe your card.

Don’t feel guilty about falling for this trick; the easiest way to combat it is to keep your cards hidden away. Only bring them out when they’re truly needed.

2. Make Envelopes. Grab a stack of envelopes, mark each one with a designated expense, and put in your allotted allowance for each expense.

It’s easy to stay on track when the money for your bills is pre-counted and away from reach.

3. Use Cash. It’ll help you see the true value of what you’re spending if you only use cash.

If you don’t like handling money, you could opt for using your debit card. Just remember to stay on top of your balance so you don’t overdraw your account.

4. Cut Back. Believe it or not, there are usually ways you can cut back without even feeling much of a difference.

Take some time out of your weekend to call up the cable company, the phone company, or your cell phone company.

Discuss different lower cost plans. Maybe you don’t use all of your cell phone minutes each month or perhaps you can live without HBO.

5. Grocery Shopping. There are certain luxury items that some people opt to place in their budgets, while others won’t.

However, a grocery bill is something that everyone shares.

Analyze how much you spend each week at the grocery store and see if you can bring down the average amount.

Coupon clipping and warehouse shopping are great places to start.

6. Budget for a Splurge Item. Treat yourself to something special every once in awhile while still staying in your budget.

While you may not be able to afford it too often, you can save up some money for a special treat for yourself.

It may be something you’ve been meaning to get or maybe you just want some money to hit up the town or go to a movie.

The point is, if you’ve budgeted for this it won’t be a shock when you balance the books later.

7. Homemade Gifts. There are always many holidays throughout the year where you’re expected to deliver gifts for your loved ones.

If you’re tight with cash, don’t forget about homemade gifts.

These gifts are most often considered more thoughtful than anything you could have purchased.

For example, make a scrapbook or photo album.

While there’s some cost involved, the finished product will be priceless – yet far less than the latest gadget.

Keep Tweaking

If you’re still having trouble balancing the budget, it’s important to keep trying new things until you have a system that makes you feel comfortable.

Also, don’t be afraid to ask for help. A financial planner or financial counselor can give you even more valuable ideas.

With the right techniques, a budget can be the tool that brings you freedom!

How hard is it to stay on budget during the holidays?

How can you be happy and stress-free during this budget squeezing time of the year?

Talk about that in the Personal Growth Cafe Community!

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November 5, 2017

Get Out of Debt by Balancing Your Checkbook

If you want financial freedom, you need to pay off your debts as quickly as you can.

This may sound obvious, but if it were so obvious, why are so many of us in debt to begin with?

Financial freedom begins with balancing your checkbook.

This means what goes into your checking account must be greater than (or at least equal to) what comes out.

If what comes out of your checking account exceeds what goes into it, you’re living with a deficit.

This may mean that you’re simply not paying the bills you need to pay or you’re depleting your savings and, at some point, you’ll run out of money.

What Is Deficit Financing?

Deficit financing means you’re buy things on credit, either by using credit cards or by taking out loans, such as a loan against the equity of your home. Any way you slice it, you’re taking on more debt.

If you make the minimum monthly payment on a credit card, it could take 30 years to pay off the debt and, in between those minimum payments, interest continues to accrue at astronomical rates.

At the end of all this, you’ll pay much more for the product or service than the original price tag, even though you got more time to pay off the bill.

Deficit financing – spending more than you make – can be a short-term solution in tough times, but in the long-run, it will never bring you the financial freedom you need.

Banks are eager to give people what they think they want – buying “stuff” with other people’s money.

Many consumers see financed debts as “free” money, but needless to say this is ridiculous!

You have to pay the piper sooner or later, and it’s always better to pay him as soon as possible.

There is no such thing as free money; you either have to borrow it and pay it back with interest, you have to earn it, or you have to make it.

You earn money by working for somebody else
You make money by running your own business and providing goods or services that are needed by others
You borrow it by using credit cards, loans, and lines of credit.

How To Balance Your Checkbook

Balancing your checkbook is all about getting and staying out of debt. So how do you accomplish this balance?

Well, it all begins with tracking every financial transaction: cash, credit, or debit.

You should keep all of your receipts. This includes whenever you pull out money from an ATM or use your debit card to pay a bill.

Keep all of your canceled checks in a safe place.At least once a month, check your existing checking account balance according to your calculations against your bank statement.
This is much easier to do these days than it used to be thanks to the Internet, so you should be checking fairly frequently.

List every bank fee in your checkbook register, including overdrafts, returned check fees, or late fees from your creditors.Schedule electronic payments for your bills to eliminate late fees and balance your checkbook regularly to eliminate other bank fees.

Become Money Conscious

Only you have control over becoming debt-free and wealthy. Learning smart money management tips will put you on the path to financial freedom.

Make a household budget with all your monthly expenses and compare it to your checkbook and bill schedule.

Seek advice from trusted experts about ways to cut down your monthly expenses to eliminate the reliance on credit cards and loans.

Your objective is to pay out less from your account than you are putting into it.

If you aren’t doing this, you’ll need to figure out how you can cut expenses as soon as possible to reach financial freedom.

How can this help you better your life?

What can you gain from financial freedom in your life?

Talk about that in the Personal Growth Cafe Community!

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