Category: family budget

Priorities Bring Focus to Family Budgeting

Often times, the family budget is a source of conflict. Most of the time, the major earner makes the final financial decision, which isnt always a welcome deal for the rest. Since money is such an intrinsic part of family life, families need to achieve accord in this aspect. There is a four-step cycle in budgeting the family money to maintain peace and harmony.

1. Set your priorities.

Priorities are different from goals. They are aspects in your familys life that you, as a family, want to set focus on, say health or childrens future. While goals are specific targets that support priorities.

In setting priorities, do not set too many as it defeats the purpose. Ideally, there should only be one, but because life is not ideal, 2 to 3 are reasonable.

As the priorities are set and agreed upon, write them down. Post the paper where everybody can see them to remind them of what your family is focused on for the next few years.

2. List down your goals.

Once the family has set and agreed on priorities, the next step is to set the goals. Goals are specific and measurable conditions that, when achieved, will support the priorities.

In setting goals, establish a target that is both challenging yet achievable. A 10-15% of the familys income is a good savings target for a childs future education: stretching yet reachable.

Try to limit your family into setting 1-2 goals per priority, to maintain focus.

3. Work towards your goals.

After setting your priorities and goals, start living by them. All of the familys activities will be geared towards working at your goals. Track progress, particularly on financial goals, by using an income and expense-tracking tool. The simplest way is to get a notebook and list down all expenses and incomes and set a budget for future spending. There are those that invest in computer software or a family accountant. Whatever it is, the important thing is to have a system of monitoring the familys performance towards achieving their goals.

4. Evaluate your family life.

At a certain point in time, when you feel like its time to evaluate your life, check how your family is doing against the goals. Goals that have been achieved can be checked off the list, and new ones can be formulated.

At times, in major changes, say a career move, or when a family member goes away, it may be time to re-evaluate priorities. When such a time comes, then the cycle begins, just like what its for: life!

Gas Saving Tips

The price of gasoline is on the rise. This is truly a great concern if you are following a tight budget. So how can you save some money on gas? Read these tips.

The carpool system

This is a great idea for employees and students alike. Since all of you will have the same destination, there is no need to bring extra vehicles if you can all fit in one car or van. If you are with your co-workers, it is a good idea to bring your cars alternately or on rotation. If you have children that you bring to school or social events, exchange driving responsibilities with your friends.

Commute to work

You can always take the public transportation system when going to the office. This is also a good way to relax since you are not driving. You can even take a short nap while on your way.

Look at the prices of different gas stations

Take time to drive around and check the pump prices of the gas stations near your neighborhood. Keep in mind that a few cents difference can add up to a lot if you continually have your car re-filled in the same gas station all the time.

Shed some sweat

A good way to save money on gas and keep yourself healthy at the same time is by walking or riding a bike to your destination. It saves time since you do not have to look for parking and also makes you healthier from the exercise. Utilizing these alternatives will also keep you from getting stuck in traffic which will surely waste a lot of your time and gas.

Keep your car in very good condition

It is necessary to keep your car’s engine in good running condition so that it will not consume a lot of fuel. When driving around on errands, plan out your route before you even get out of the house. This will minimize your trips going back and forth. If is also ideal to use the aircon as minimal as possible since it drastically increases the car’s fuel consumption.

Check your car’s tire pressure

Keep it a habit to check your car’s tires so each one has the right amount of pressure. Having unequal pressure can greatly affect the car’s fuel economy. It is also advised for you to refrain from accelerating too fast since this means burning a lot more fuel.

These are some of the things that you can do to save on gas. Gasoline is not a renewable resource, therefore using it wisely is very important to conserve this valuable commodity.

Tips on Saving Money during the Holidays

With the hype that holidays usually bring, people always have the tendency to buy more and spend more without taking into account the consequences that their actions can bring.

Hence, it does not necessarily mean that because it is the holidays you have all the reason in this world to buy whatever you want and spend how much you want. Some people contend that its just once a year, so better give what you have.

The problem is that giving something just for the spirit of the holidays does not mean you have to spend gold. You can still give something that will be deeply appreciated without having to spend more money.

Heres how:

1. Make a budget and stick to it

The problem with most people is that they find making a budget relatively easy but sticking to it is doubly hard. So whats the point of making a budget when you do not know how to conform to what you have stated in there?

Making and using your budget should always go hand in hand. Therefore, when you make your budget this holiday season, it is best that you follow the things that are written in it so that you would be able to save more money.

2. Live within your means

Of course, everybody would want to give gifts because that is what the holiday season calls for. However, it does not necessarily mean that you have to spend more than what you can afford.

The trick to saving more money is to always live within your means. Spending more than what you can afford will definitely bring more problems than you can afford to solve.

3. Personalize it!

As they say, it is the thought that counts. Hence, there are no better ways to show how much you have thought of those people this holiday season than making personalized gifts.

4. Shop and compare

It really pays to shop around and doubly better when you compare prices. You will never know which items are better priced than the others are when you do not compare their values.

The point here is that you should not be confined to one shopping portal. Try to look for other items, usually in thrift stores and consignment shops, where you can find the best items at a lower price.

Indeed, shopping for the holidays can be fun, but you dont have to be spendthrift. Nowadays, you really just have to be practical.

A Little Goes a Long Way: Smart Secrets to Budgeting

Theres nothing more we want than to be able to efficiently manage our money. After all, the money that we want to manage is money that is oftentimes, hard earned. This is where a budget comes in. A budget executed properly, should help you see where your money is going, get more utility out of every buck, and help you save some extra for future use.

The first smart secret to a budget is to set a goal. What do you want to achieve? Do you want to correctly appropriate your income into bills payments? Do you want to put an amount aside for a big purchase or a huge investment? By having a goal, you will be able to shape your budget to best serve your interests.

Secondly, you would want to take note of where your money usually goes. This includes bills, major but regular purchases (like grocery costs, healthcare costs, and the like), and everyday miscellaneous purchases. Only when you list down where you know your money usually goes will you be able to identify which expenses you can do without. Once youve identified these regular expenditures, take into consideration what you can cut back on. How much do you spend on your daily caffeine fix in the morning? How much do you spend on newspaper deliveries to your front door? The measly $2 or $5 of these small purchases cumulatively translates to more than $3600 a year! Instead of buying your expensive latte or reading the newspaper on print, put aside the amount you would usually pay for these small routine purchases in a small container. You will be surprised at how much youre saving out of your older budget.

Being indebted is a vicious cycle on its own. Youre talking about continuous payments, not to mention huge interest rates. The best way to deal with this is to pay the minimum on all of your debts in order to avoid paying extraneous late fees. Whatever cash excesses you may have, you can opt to add on to the payments you make in your biggest debt. This way, you are concentrated on getting the biggest debts first that cost you the greatest interest rates. Doing this progressively, youll be amazed at how much youll get off your huge debts.

The last and most important step is to jot down the amount you earn the sum you spend. You can make use of computer cash management programs, or make database sheets of your own. Make a system that works for you and will help you keep track of your monthly budgeting progress.

TAKE CHARGE OF YOUR FINANCES: TIPS ON BUDGETING

With prices of commodities increasing day by day it is proper to make your very own strategic plan on maximizing your financial resources and making sure that every penny earned is well spent.

Make your move on coordinating your finances and list of expenditures that may affect the way you use your income and empower you on your economic stability as a working individual.

Your source of income, lifestyle, spending habits, current job and house location, cost of living, payables and loans determines your level of budgeting needs. Starting to take charge of your finances is one sure way of becoming successful in a field of self-fulfillment and success.

The following tips and recommendations will provide you details on how you can help yourself manage your finances and assume a new outlook to become responsible in your spending.

Treat Math As Your Lifetime Partner Do the entire math in your purchasing needs. Try to compare prices across your current location for the price of a range of grocery and household items you need in a day-to-day basis.

Save as much as you can in an item you are trying to buy. Chinese businessmen exercise effective buying techniques. They save as much as they can and usually purchase in bulk to increase their revenue index on the item they plan on selling as well.

Gambling Gambling tops the chart in making your life as chaotic as it could get. Gambling strips you off your finances and keeps you vulnerable from the threats of bankruptcy.

Know Your Wants and Needs Limit your spending on something which you are not in dire need of. According to a recent study, luxuries are second to gambling in terms of the degree of money-stripping capability.

Do Not Spend More Than you Earn Rags-To-Riches stories do not fail to mention this famous clich. There is always truth to this phrase for you cannot live in a world where you consume more than what you can produce.

Keeping A List Making your own budget list is vital to your success to becoming prudent. A wise buyer needs to consider the amount of a certain commodity and how will it impact his life as an individual.

An unconscientious consumer would not care about what is being purchased as long as he or she has money to buy for them. Unless you are someone who has a considerable amount of wealth and income resources, you can not afford to disregard this recommendation and go ahead with your practice.

IMPORTANCE OF SAVING: SAVING THE BEST FOR LAST

The value of money cannot be underestimated. In a recent national survey, more than 96% Americans agreed that early monetary savings would help one achieve a fruitful and stable life.

Saving is a way of insulating oneself from the many symptoms of health and natural adversity. While an average youth of yesteryears thinks more about short-term financial goals such as purchasing a new pair of signature shoes, owning a new jet ski or a brand new car, statistics show that more and more are starting to realize the importance of keeping a personal savings.

Long terms goals are described as goals that have a lasting effect should a persons present actions be religiously maintained.

The following statements are outlined to provide information and tips on how you can start up your money-saving gimmicks and ensure a happy and financially stable future and list the reasons as to why saving money should occupy a greater place in our list of priorities in life.

Reasons for Saving:

Saving for your Future and Present Needs Saving today will provide you with flexible financial resources in the future.

Keeping at least 20% of your monthly earnings while using the other for your household, personal and unexpected expenses will surely play a big part in your pursuit for a stable future.

Saving for an Investment Need Savings can also be a source of your future capital for engaging in business enterprises.

It will provide you more opportunity for venturing on your unexplored talents and earn you a huge potential in increasing your money exponentially.

Saving for your Retirement More than 23% of todays elderly were shown to have failed in one instance in their lives, to save and strategically used their money for preparing their way to retirement. As a result, these folks extend their entire retirement career working on an equally satisfying job that pays them enough to cover their basic expenses.

Keys to Fulfilling your Saving Goals:

No matter how good our intentions and objectives for saving are, we should also take note that goals can fall and touched the following baselines or characteristics.

Attainability Goals should be something attainable and one which can be achieved without you doing something extraordinary or illegal. A little amount of patience and hard work are key.

Consistency Changing your goals from time to time due to incidents that may arise in the near future are sure ways to deterring your intention to save.

While we need to focus on the present incidents, we also need to take hold of our original intention and continue until you have gained enough leads to get it.

Saving Money on Electricity: A Money-Saving Maintenance

An electrical appliance that does not work at maximum capacity results in less than ideal performance and higher electricity bills. That is why it is best to save on electricity in order to save more money.

Here is how you can get everything saving up:

1. Keep your appliances clean and well maintained. Regular cleaning and maintenance keeps your appliances in top shape, hence, it will perform better and consumes lesser energy. Energy saved is money saved.

2. Have an annual checkup by a qualified service technician. This can reduce the appliances operating costs by as much as 20%, extend the life of the system, and improve its safety and air quality.

3. When using air conditioners, it is best to establish your comfort temperature, and then setting your thermostat at that level permanently. This will definitely save on electric bills because the air conditioning unit takes less energy to cool air four to five degrees than it does to cool air eight to ten degrees.

4. Replace any items that may have been 10 years or older already. Old appliances are most likely not at their optimum efficiency. By replacing them, your electric bills may be cut by half.

5. If you experience a power outage, make sure you turn off the switch on your appliances and allow time to pass before turning the appliances on again when the power returns.

6. In refrigerators, do not overstuff compartments with bottles and plastic containers. Cool air must circulate freely to avoid overworking the condenser.

Also, try not to leave the door of your refrigerator as open as possible or open longer than what is needed. This will have the tendency to allow the cool air to break out.

7. Always try to look for the energy saving logo or notes whenever you buy your new appliances. Buying an appliance with a logo that states it consumes lower energy, it will definitely let you save more money on your electricity.

8. Always use energy saving lights or light bulbs. These energy saving lights or light bulbs usually last up to 12 times longer. Plus, energy saving light bulbs consume less energy. Hence, you will be able to save more money just by saving on electricity.

9. Use energy-saving facilities at home like energy-saving windows or energy-saving appliances. This will lessen the consumption of energy and, thus, will let you save on money.

For instance, use a double-glazed window instead of the ordinary window.

10. Use insulators at home. This will not let the warm or cool air out, and vice-versa.

Indeed, saving on electricity will definitely save more money.

Secrets of keeping to the family budget

The high cost of living in today’s society, wherever you may be, has made budgeting a priority among families. In today’s inflationary world, nothing is more important than knowing how to wisely spend the meager income that you get.

Financial problems usually arise due to lack of proper budgeting skills, or failure to keep to the proposed budget. No matter how much income you may have, it is still important to keep track of your assets and liabilities, your earnings and expenses.

It is ironic but a person who earns thousands will have the same problems with the person who earns by the hundreds. Most often, different kinds of people, with diverse income levels, have budgeting problems. Others who may have been successful in making a budget, usually fail to keep within such a budget.

A budget refers to a financial plan, taking the incoming and outgoing monetary resources into consideration. A good budget should not only mean a balance or equity between income and expenditures. It also means lesser expenses, and making an allowance for savings.

If you earn a thousand dollars per month, you should map out all the necessary expenses you will have to incur during the month such as payment for your house, food and transportation. Of course, this is presuming that your tax liabilities have already been settled. What remains after you deduct your total expenses from your income is your savings.

What you do with your savings will make a difference later on, when the need arises. You can choose to keep your savings in a piggy bank or place it in a bank where there is minimum interest rate but at least your money is safe from you and from intruders. With a bigger savings, you can get the services of a financial adviser who can give you higher-yielding investment options

Here are tips to make sure that you keep within the family budget:

1. Maintain a logbook where you can list your income and expense account on a weekly or monthly schedule.

2. Buy your groceries at one time. To do this, make a list of all the things that you would need for your target period and purchase them at one time. Sometimes, there are discounts if you buy by the dozen so take advantage of this.

3. Avoid going to the supermarket and shops if you do not need to buy necessary items. This will keep you from making unnecessary purchases and keep you from straying away from your budget.

4. Think twice before you buy something. By doing this, you will realize that it is not really a necessity but a whim.

Five Great Ideas to Save Money

Want to save money but dont know how? Feel like depriving yourself when it comes to saving money? Dont be disheartened. Try these five money saving ideas, without breaking up a sweat!

Reduce or eliminate magazines. If you are a typical American family, your mailbox gets its regular fill of magazines: business, sports, home and garden magazines. Can you imagine how much each of these subscriptions cost? Annually, it is an average of about $20 per magazine. If your family is subscribed to 5 different magazines, thats already $100 savings per year! If you still need the information from such mags, try to check out their websites and youll be surprised at how much free information is available!

Buy in bulk. How can warehouse and discount clubs drastically lower their prices? Because they buy and sell in bulk. And so should you! Consumables that are non-perishable can be purchased 10-15% cheaper when bought in bulk. Be sure to stock up only on fast-moving items such as kitchen towels, cleaners, canned goods, etc., to avoid wasting money on rancid food.

Eat at home. Eating out has become an American lifestyle. What used to be an activity to celebrate special occasions has become part of the daily, fast-paced life. But did you know that eating out could chomp as much as 40% of your budget for food? Thats as much as $40 weekly, saved just by eating in!

Plan your meals. Eating out 4X a week need not be your solution to a dynamic lifestyle. Menu planning is! Take time on weekends to plan for the following weeks meals. Every night, before you hit the sack, take out the ingredients for the meals of the next day from the freezer, and store them in the refrigerator. By the time you get home from work, everything is thawed and ready to be cooked. And because eating out is part of the American way of life, you would have saved enough money to spend for dining out on special occasions!

Homemade skin care. Is your dermatologist eating up your budget? Dont you wish you can be beautiful and save money at the same time? The answer is yes, you can! By using ingredients from your pantry, you can take care of your skin and still save a fortune. Try the following:

– Honey and oatmeal can exfoliate dry skin.

– Ginger seeped in a bath softens your skin.

– Cucumber and milk softens tired skin.

Without drastically changing your lifestyle, you have started your path on saving money. Secure your future by using these money saving ideas, today!

A Frugal Lifestyle

The word frugality has left a more negative connotation for most people than simply being a saver, a cheapskate or tightwad. There is a thin line difference to saving and too much frugality to the point of being awkward and ridiculous. This is where the negative connotation comes from.

But if you are guided with the right principles and reasons in deciding to live a frugal life, you would never go wrong.

If you have decided to live frugally, no need to be worried of insults. Keep your head up high. And keep your focus through these tips.

1. Eating Out – Having gimmicks with friends on a Friday night is fine if you do it once in a while. But this can be expensive if you add them up at the end of the month.

2. Clothing – Naturally, if you are the kind of person who adores signature and designer clothes, do not expect that there will be something left of your take home pay. Instead of being trendy, wear clothes that can easily be matched with your other clothes.

3. Own Home – If you are planning to move out and find a place to settle, do not be overwhelmed by the excitement, instead be practical. As a start, buy a smaller house or try other ways like rent-to-own, do-it-yourself arrangements, and owner financing.

4. Buying Your Own Car – Shy away from sports cars or SUVs. Just stick to your purpose of buying a car which is to transport you anywhere you need to go. Check out also program cars like a new car warranty. Maybe this is not just the best time to replace your car with a new one.

5. Shopping for Groceries – As much as possible do not go with items that are branded. Choose non-brands and try looking for items on the highest or lowest shelves for best prices. Grab the opportunity and shop during sales or use coupons.

6. Family Out – There are inexpensive ways to bond with your family and be entertained like going to libraries, local parks, malling, picnics, visit friends and local church.

7. Buying School Supplies – Stock school supplies at home and do not buy anything fancy.

8. Be contented with what you have and try to live within what you earn.

9. Plan your Childs College Education – Teach them the ways to be independent and self-supporting by encouraging them to apply for scholarships and on campus jobs.

10. Be Aware of your Financial Limitations

11. Anticipate your Failures by Planning – Have always a budget plan so you would avoid impulsive buying.