Personal Finance Tips » Managing Your Expenses

Smart Financial Planning – How to Make a Personal Budget

admin — Sun, 04 Jul 2010 09:22:08 +0000

Learning how to budget properly is a must-have skill in life yet most people never receive any instruction in it.

The first thing you must do before you start a budget is to figure out how you are spending your money. Keep a diary for a three month period of everything you spend, down to the last dime. If you spend 1.50 a day on coffee, note that down. Every time you pay a bill, notate that.Once you have three months of spending activity documented, then sit down and sort your expenses.

Your expenses will generally fall into two categories: fixed and variable. Fixed expenses are those that stay the same or are unlikely to change such as your mortgage/rent, car payment, student loan payments, credit card payments, and payments for cable/satellite tv service. Variable expenses are those that fluctuate from month to month such entertainment, groceries, eating out, clothes shopping, or emergency expenses like car repair.

Total them up and then subtract them from your income. If the number is positive then you have a surplus, if the number is negative, then you have a deficit and are spending more than you are making.

If you have a surplus, then you should do a couple of things:

1: Set up an allocated savings plan
2: Pay down your debt

Setting up an allocated savings plan lets you plan your purchases, avoid going into debt from unexpected expenses, and save money to just have fun with on the spur of the moment.

Paying down your debt will free up more of your money in the future to put into your allocated savings plan. Once you are debt free, that allocated savings plan will help you to remain so.

If you have a deficit, then the first place you need to look is at your variable expenses and see where you can make cuts so that you aren’t over-spending. Even small changes can yield big differences, like foregoing the Starbucks coffee in the morning in favor of making your own at home and taking it to work in a thermos. Your goal is to get into the surplus position outlined above.

If your deficit is large and most of it is comprised of your fixed expenses, then you are likely carrying a heavy debt burden and could benefit from the services of a credit counseling/debt management agency. Such an agency can help you by working with your creditors to reduce the interest you pay and your over-all payments while at the same time creating a payment plan that will have you debt-free in a five to six year period.

Don’t Break The Family’s Budget – Use Relocation Calculators

admin — Sat, 03 Jul 2010 10:31:05 +0000

Considering a move? There are so many things to consider before deciding to relocate. Don’t strain the brain trying to decide how much house will fit into the budget, or what type of salary can be expected. Use relocation calculators to easily determine this valuable information.

If a specific area of the country sounds appealing, learn about the region. Moving takes money, but living in a new area may take even more cash than one may realize. Find out what types of salaries are available for that particular part of the country. An advertising manager in Dayton, Ohio may make a completely different salary amount in California.

Pushing the pencil can help to determine an approximate budget amount for a mortgage payment, but many factors will influence the exact amount of house that can be purchased to fit within the budget. There is no reason to delve into digits to decode all of the pertinent information.

Numerous websites offer relocation calculators that will quickly and easily come up with the desired information. Within a matter of several seconds, the necessary data will be right on the computer screen. Print off the information and keep with your records. Refer to the information as needed.

Do be aware that the calculations are sometimes estimates or medians. Read the information carefully explaining the function of each of the calculators. All of the relocation calculators are a little different.

It can be fun and informative to try numerous variables using the calculators. If the state of Ohio is the desired destination, look at salaries for cities like Cincinnati, Sandusky, or Columbus. If the city destination is flexible, this information may be handy to learn about the job market.

While considering mortgages compare loans of different lengths and rates. Before relocating, it is best to determine what type of mortgage will work best for the financial situation. Is a 15 or 30 year mortgage right for the circumstances? Is an ARM mortgage beneficial for specific financial goals? All of this can easily be determined with the use of calculators found online.

It is not difficult to use the calculators. Some basic information will be required to determine the results. Simply fill in the general information and select the state and city, and then click the button on the screen. Shortly, the desired information will pop up on the computer screen. A separate link may indicate additional information.

Using relocation calculators is simple and convenient. The wonders of technology allow for complicated calculations to be performed with a few keystrokes and clicks.

Church Accounting Software – Money Management Made Easy

admin — Thu, 01 Jul 2010 21:37:50 +0000

Even as a religious institution, a church manages its own finances-a fact that people usually find a bit awkward. It is because of the widely held belief that religion and money must never go together. But it is hard to imagine how any organization-religious or secular-survives its daily operation without money. Ask any priest or pastor: he would tell you that money is important in practically every activity, project, or event initiated by a church. Managing the funds of a church is quite complicated because money is used in many aspects such as monthly salaries of employees, water and electricity bills, and daily collections. Sometimes, huge donations from generous parish members need to be handled efficiently as well.

Handling the finances of a church should be no different from that of a business. Churches can take advantage of modern technology to aid their daily operations just as businesses can. Aware of the money management needs of religious organizations, software providers have come up with various church accounting software programs.

Improving the accounting system of any church is the main goal of using a church accounting software. Because this software is automated, it makes handling the income and expenses of a church much more convenient. A good accounting software allows users to easily record cash inflows like daily collections, pledges, accounts receivables, donations, and profits gained from church-related events or projects. Aside from income, the software can also easily track down release of church funds for expenses such as electricity and water bills, building and equipment maintenance, salaries of employees, insurance, and charitable programs.

A church accounting software can also address transparency issues that rise from running the finances of a church. Parishes typically have no external auditing in place to check how their funds are being managed. Most accounting software programs are easy to use and accessible to multiple users. These software programs also allow recording of any change in the entries. Such features make audit trail possible, allowing church officers to regularly audit the accounting system of their church. That way, the accounting officer or treasurer of a church would not be tempted to mismanage the funds or be accused of such practice.

In addition, using an accounting software makes the administration of a church more efficient. This means financial data can be recorded, stored, and retrieved without any hassle. With the help of an accounting software, different reports can be created and church budget can be prepared in just a matter of hours. Parishioners also stand to benefit from an accounting software during tax payments since money used for church activities are tax-exempt. Church members can request for reports that show the tithes or donations that they gave to the church. Such reports can be accessed and printed easily.

A number of software programs can aid in the non-financial aspects of church management. For example, an accounting software program can be used to monitor church attendance and church activities such as weddings, baptisms, and funerals.

To conclude, the financial aspect of a church should not be separated from its religious aspect. A church can serve its parishioners better if it has an efficient system for managing its finances.

Personal Computer Checks

admin — Wed, 30 Jun 2010 20:51:33 +0000

Many computers develop errors in their systems with extensive usage. These errors may include slowing down of computer, shutting down without notice, windows piling up, programs hanging, systems not closing in time, and sometimes the whole machine may go completely dead with no signs of starting again.

Scheduled maintenance check of computer systems will save users from future problems and repair costs. It also helps maintaining hardware and assure safe storage of important data. Checks need to be done on all hardware components as well as on different software and operating systems.

Computer users have the option of either doing these checks themselves or employing technicians for carrying out checks. It is advisable for users to understand certain basic steps regarding proper functioning of computer systems to appreciate checks required to keep them running efficiently. A computer check is as important as servicing of any vehicle or device. Users can conduct a personal check themselves without involving any technician or professional.

Users can start by cleaning all parts of the computer, as dust is one of the root causes of problems and errors in the system. All cables, switches, fans, motherboard, extension cord and connections need to be checked thoroughly for any kind of damage and error. It is advised to do simpler checks before proceeding to identification of complex errors.

Clean ship and checks on connections or extension cords may solve most of the problems as majority of them are caused by improper use of computer by users. Certain software checks can be done by the system itself and possible causes of error are listed accordingly that can then be worked upon. When users conduct these personal checks on their computers they realize the importance of proper usage and maintenance.

It is essential for computer users to understand that prevention is always better than cure. Users may be assured of optimum output from their computers by conducting these computer checks.

Online Money Management – Basic Necessity For Financial Managers!

admin — Sun, 20 Jun 2010 10:59:57 +0000

For an efficient manager, the primary question is not about managing business, but it’s about managing funds. One who knows how to manage funds will find a way to manage business but one who does not know will succumb to failure.

With loads of financial transactions taking place in the daily routine of the business, it becomes a mind boggling task to handle finance. There is no place for philanthropy in business world as making profit has become the foremost aim.

While you are in business, right from expenses incurred on purchase of raw materials to payments received on selling of goods and services to the actual consumers, urgency arises to keep a track of each and every penny spent. This overburdens the task of the financial department as keeping an eye on each financial transaction becomes somewhat difficult for the financial manager.

So the need arise “Can you manage the business without any financial delay?”
Thanks to our technology which has evolved a great deal in the past decades as it has given us the most valuable gift ‘internet’.
Online money management – a revolutionary concept has eliminated all the traditional financial technique of recording expenses. It has given a new prospect to the financial world. Following are few of the benefits it provides:

No problems occur while installing online financial software. Useful for both businesses and individuals Online software accessible anywhere there is an Internet connection. It keeps a track on your single penny. Online financial software is usually inexpensive, and is often free. Categorization of expenses under customized headers.

With array of features, online money management has alleviated the financial delay which a manager has to face in the due course of the business. Online fund management is really a boon to the financial world!

Budget Planning For Retirement Should Be Taken Seriously

admin — Sun, 20 Jun 2010 01:04:18 +0000

Budget planning for retirement means taking responsibility for your own retirement. Don’t rely too much on social security retirement benefits or state pensions because they are not designed to provide you with a comfortable lifestyle in retirement. They are designed as a safety net to ensure that you don’t starve.

It is great news that people are living longer after they retire from work but that is putting huge strains on governments to maintain their pension obligations and provide care to larger populations of old people.

So how can you ensure that your finances are in order for you to enjoy a happy retirement?

A good way of achieving this is to take charge of your own retirement plan. Your retirement plan should be properly documented on a spreadsheet or on an analysis paper. The spreadsheet should include these categories:

Projected Retirement Income from:

* state pension/social security retirement benefits

* Company pensions (defined benefit/defined contribution)

* annuities

* interest from savings

* rental income

* dividends, etc

* Less tax on total income (a deduction from total income to give you a net income after tax)

Projected expenses including:

Household expenses

* rent

* rates/council tax

* food

* utility bills (gas, electricity, water charges)

* household insurance

* house repairs and maintenance

* telephone bills

* television license

* cable tv subscriptions

Motor expenses

* petrol & oil

* car insurance

* road tax

* motor servicing and repairs

* subscription for breakdown service

Personal expenses

* clothes

* life insurance cover

* medical cover

* loan repayments

* savings plan

* charitable donations

* gifts for special occasions

* personal grooming

Holidays, leisure and entertainment

* theatre and cinema tickets

* tickets to support your sports club, etc

* subscription to gym/golf club

* night outs with friends

* luxury cruises and holidays

Don’t forget to allow for inflation in your budget planning.

It may be a good idea to try out the plan six months before your planned retirement to see how you manage on your budgeted retirement income and expenses. If you find yourself struggling to manage on the budgeted income and expenditure, perhaps you might consider taking a part-time job when you retire to supplement your retirement income.

Managing Your Household Chores Successfully While Being a Stay at Home Mom

admin — Sat, 12 Jun 2010 11:14:47 +0000

Prioritizing tasks:
There will always be a huge pile of tasks to complete, no matter what time of the day or year it is. The secret to managing them is by prioritizing the tasks. The way to go about it is by making a list of tasks first. Most successful stay at home moms find it easy to spread out their task list across the days of the week. So, if Monday is for ironing the clothes, Tuesday could be set aside for taking the kids to soccer. Wednesday could be for mending clothes, darning work etc. Many a stay at home mom finds certain tasks to be plain boring. These include doing the laundry, washing the dishes etc. However, these need to get done. Therefore, one trick that you can follow is to set aside time each day of the week for these activities. If you tend to feel especially lazy during the afternoons, try scheduling these routine tasks at that time. It will keep you active and prevent you from falling asleep.

Planning ahead:
A little planning and preparation can go a long way in ensuring a successful and balanced week ahead. If you are a stay at home mom you will undoubtedly have a whole list of things to do. Keep aside Sunday as the day for planning and preparing for the tasks ahead. Try finishing the cleaning work like kitchen and bathroom areas on Sunday or do the laundry. Then keep the rest of the day aside for family. Many stay at home moms have found that being planned and organized in this manner helps them stay focused and not get overwhelmed by the tasks at hand.

Mondays are meant for less:
Mondays make all of us stay at home moms feel blue. You are just getting back to the grind after a blissful weekend. Hence, don’t burden yourself further by doing too many household chores on a Monday. Start by just doing the laundry or maybe washing the dishes. The rest of the day can be spent doing something fun and creative that you enjoy. The key to remaining a successful stay at home mom is to know your limits and how much workload you can actually take on.

Meeting with friends:
Many stay at home moms find weekdays the best days to meet up with friends. You could schedule the mornings to complete the chores and the evening to catch up with your friends. In this manner, by splitting the time optimally, a stay at home mom can manage to accomplish chores and have a good time too!

How to Work Out a Budget and Stick to It!

admin — Fri, 11 Jun 2010 01:19:15 +0000

Working out a budget for your bills is easy. Working out a budget for everything else seems nearly impossible. I mean, how can you say that you will only spend $30 on fruit and vegetables when they are sold by weights? To do this, you would have to carry a calculator with you when you went shopping and weigh everything before you bought it. This is beside the fact that the price of food seems to be continually on the rise. The same can be said for petrol. If you use 20 litres a week, what do you do when the price changes? You would need to rearrange your whole budget.

The solution to this problem is to budget for the most you think you would spend on these items. This way, if you don’t spend as much, you will have saved money that you can then put away for emergencies.

So how do you create your budget in the first place? Many people will tell you to start by writing down everything you spend money on for the next month. What if you want to start your budget now, instead of in a month’s time? Also if you have bills that only come every three or six months or even yearly, they won’t be included if you work out your budget from just one month of spending.

Let’s look at it from a different perspective. The first thing I look at is my regular bills. Things like rent, electricity, phone, insurance, car registration, loan repayments etc. These are all regular bills that need to be paid on time and are generally about the same amount each bill cycle. Therefore, the first step is to write down all of these bills and how much you will have to pay. The next step is to work out a yearly figure for each bill. For those bills that come monthly, you multiply the amount by 12. For three monthly bills, multiply by four and six monthly bills are multiplied by two. Then we need to work out how much these bills will cost us each pay period. If you are paid weekly, you would divide the yearly amount by 52. If you are paid fortnightly, you would divide by 26 and if you are paid monthly, you would divide by 12. This gives you the amount you need to budget for each pay period. The remainder of your pay is then used for food, petrol, normal living expenses and savings. Most people have a general idea on how much they pay each week for these items so that amount is used for your budget.

Now that we have our budget, how do we make sure that we stick to it? The first step is to make sure that our bill money that we are budgeting for is not left in our everyday bank account. The temptation to spend can be too great if the money is easily accessed. I heard about a system a few years ago where you get yourself a folder with plastic sheet protectors in it and have one for each of your bills. Then each week you put your budgeted amount of money into the relevant pockets so that when the bill comes in you just pull out the cash and pay it. The one big flaw with this system is that you end up with a lot of cash in your house. There is nothing to stop you from “borrowing” from your bill money and there is also the risk of having it stolen.

I recommend that you set up a separate bank account for your bill money. This account would ideally not come with an eftpos card but be accessed by telephone and internet banking. Most bills can be paid by bpay so when your bills come in you can pay them directly out of your bill saving account.

Home Budgeting – Time to Cut Back

admin — Mon, 07 Jun 2010 06:18:31 +0000

How much do you spend on food on a day-to-day basis? For most people, the simple answer is too much. It’s not just the extra bag of chips or the impulse trip to the diner. There’s also the cost of gas, electricity, and production time involved in getting food to your table. But saving money on food doesn’t mean going hungry or giving up nutrition. Often, it only takes a few simple tricks. Here are five you can try today.

Make a weekly menu: Knowing what’s ahead for the week will keep you from buying things that aren’t on your shopping list. Or if you do buy stuff on impulse, you’ll be able to keep it under control. It also saves those quick trips to the store for last-minute ingredients, which cost you time, gas, and money.

Take advantage of sales: If something’s on sale, go ahead and stock up-but not more than you can consume before it goes bad. Get vegetables in bigger packs, bigger cans of broth, an extra pack of meat. You can always use the extras to liven up other dishes or even make a new dish altogether.

Use that crock pot: Slow cookers are great for budget cooking because they let you choose cheaper meats, use up less energy, and offer more creative meal options. They’re not just for pot roast; there are lots of crock pot recipes for breakfast, soups, and even desserts!

Do some DIY: Whenever possible, make a batch of your own commonly use ingredients. Use meat drippings to make gravy or sauces, pre-cook your meats and save the broth for soups, or make a large batch of your kid’s favorite dip. In the long run, you’ll save a fair deal since you won’t have to buy pre-mixed stuff anymore.

Switch off as you go: Don’t leave appliances running longer than they should. Set your cooker to turn off automatically when done, and wait to the dishwasher to get full before turning it on. When you’re done cooking, make sure everything is turned off-even that little blinking light in the microwave.

Money Management Online

admin — Thu, 03 Jun 2010 09:24:53 +0000

Since the ancient times and all the way to today, money is always the driving force in everyone’s life.It is the center of buying, selling, and of course trading. Rich people who have lots of money have little or nothing to worry about when it comes to bills, debt, and late payments while those with some money have jobs and cross their fingers in hopes of winning the lottery.

Today, people can use the world wide web to make more money than even their best jobs ever could. It simply starts with one’s personal website and an on line bank site that allows you to affiliate other sites that are involved in products and marketing with the use HOP links so whenever someone buys a product from that site the affiliate gets a percentage of the price the buyer pays. Next the affiliated sites need articles, advertisements and other forms of information to attract the attention of many buyers and consumers who are surfing the net now and then. The more of this is done, the more money will be made.

This is a great idea for many people who are underpaid, don’t have a job, do only odd jobs or at least at the mercy of bills, need to pay off their houses and credit card debt all the time. If most people do this, they may choose to keep or quit their jobs forever, be able to feed their kids, and not worry about inevitable payments anymore. Who knows? Maybe in the future, everyone would end up doing this.