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Monday, March 2, 2009
A personal budget has to be tailored to each person. What works for one person might not work for another person. For example, it might make sense for a family of 5 to set aside $400 for food each month, but if only support yourself, on person, $400 is pretty steep to spending on food.
There are some basic personal budgeting strategies that you should try to follow to make the best budget for you. Start by recording all the money you make. Include everything from your regular salary and tips to overtime, interest income, and investment income. Include everything you make.
Also, don't give up on opportunities to make money, especially if you need it. Are you a teacher? Don't pass up tutor opportunities. As a certified teacher, you can make a nice wad of cash in 30 to 60 minutes. As a business professional, do you get asked for advice a lot? If you are spending hours a week advising people, you should charge for it. You spent a lot of time, money, and effort to learn what you know, why should others get it for free?
Next, write down all your expenses. Include everything you spend money on, no matter what. Even that $2 pack of gum you buy every week can add up fast. Add them up for an entire month. This will help you whittle down the expenses you don't really need when you start planning your budget.
Some people are very lenient where they cut back on expenses. Even if you aren't in debt, you could save a lot of money to put away for retirement. You'd be surprised how much you can save.
Design a plan you can stick with. Don't be so outrageous with your budget cutting out expenses that severely impede how you live. For example, if you think you can save $200 a month by not driving anywhere, but you have a 30 minute commute to work, well, you can figure it out. Its not going to work.
If you are in debt, especially heavy debt, you might have to be somewhat stingy until you pay off your debt. Downgrade wherever you can and only spend when you absolutely have to. The more you cut out, the faster you'll pay off your debt.
Keep at your budget. Make a budget that will benefit you the most. You need a good balance between saving and spending. If it's to hard to stop spending, you need to get some help and work on your spending addiction. If you can't stop spending, that is exactly what it is, an addiction.
There are some basic personal budgeting strategies that you should try to follow to make the best budget for you. Start by recording all the money you make. Include everything from your regular salary and tips to overtime, interest income, and investment income. Include everything you make.
Also, don't give up on opportunities to make money, especially if you need it. Are you a teacher? Don't pass up tutor opportunities. As a certified teacher, you can make a nice wad of cash in 30 to 60 minutes. As a business professional, do you get asked for advice a lot? If you are spending hours a week advising people, you should charge for it. You spent a lot of time, money, and effort to learn what you know, why should others get it for free?
Next, write down all your expenses. Include everything you spend money on, no matter what. Even that $2 pack of gum you buy every week can add up fast. Add them up for an entire month. This will help you whittle down the expenses you don't really need when you start planning your budget.
Some people are very lenient where they cut back on expenses. Even if you aren't in debt, you could save a lot of money to put away for retirement. You'd be surprised how much you can save.
Design a plan you can stick with. Don't be so outrageous with your budget cutting out expenses that severely impede how you live. For example, if you think you can save $200 a month by not driving anywhere, but you have a 30 minute commute to work, well, you can figure it out. Its not going to work.
If you are in debt, especially heavy debt, you might have to be somewhat stingy until you pay off your debt. Downgrade wherever you can and only spend when you absolutely have to. The more you cut out, the faster you'll pay off your debt.
Keep at your budget. Make a budget that will benefit you the most. You need a good balance between saving and spending. If it's to hard to stop spending, you need to get some help and work on your spending addiction. If you can't stop spending, that is exactly what it is, an addiction.
About the Author:
Want to find out more about budgeting money? Find the best personal budgeting strategies and learn how you can come up with a budget that will work best for you.
posted by Credit Counseling at
1:53 PM
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College is not cheap. In fact, the cost just seems to keep going up and up. Very few people can actually pay for the entire cost of college out of pocket. Students look to financial aide, grants, scholarships, and loans to pay for college. Student loans are one of the most common ways to pay for college and most college students graduate with student loan debt.
How much are your student loans worth? Did you graduate with a lot of debt? When you went looking for loans, the first loan you got was probably the government Stafford Loan because of the low rate. If you have financial need, you can get the Subsidized Stafford Loan which allows you to not pay interest on it while you are in college.
Besides government loans, there are other lending options. You can go through a student loan service, get a personal loan, have your parents get a loan, take out a second mortgage, or use credit cards. I suggest that you don't take out a second mortgage and that you NEVER use a credit card to pay for college.
Another way to save for college is to go to a cheaper school. Most cheaper schools are state schools. Don't think that cheap means lower quality. They only cost less because the also get money from the government. Many state schools are even better than a lot of more expensive private schools.
If you really want to minimize your student loan debt, change your college choice. There is no reason to go to a really expensive school unless you either get a full ride there or you are a genius and just most go Ivy League.
You can save even more money if you go to a community college first then transfer. Community colleges are even cheaper and you'll also save money on room and board because you'll be commuting.
You can also save a lot of money by commuting to school. You might find that living in residence halls or dorms isn't all they are cracked up to be anyway. Commuting can save you a lot, especially if you live close by and don't have to pay much gas.
A final way to pay for college is to work. Get a part time job during the semester and work full time over break to save the most money possible.
How much are your student loans worth? Did you graduate with a lot of debt? When you went looking for loans, the first loan you got was probably the government Stafford Loan because of the low rate. If you have financial need, you can get the Subsidized Stafford Loan which allows you to not pay interest on it while you are in college.
Besides government loans, there are other lending options. You can go through a student loan service, get a personal loan, have your parents get a loan, take out a second mortgage, or use credit cards. I suggest that you don't take out a second mortgage and that you NEVER use a credit card to pay for college.
Another way to save for college is to go to a cheaper school. Most cheaper schools are state schools. Don't think that cheap means lower quality. They only cost less because the also get money from the government. Many state schools are even better than a lot of more expensive private schools.
If you really want to minimize your student loan debt, change your college choice. There is no reason to go to a really expensive school unless you either get a full ride there or you are a genius and just most go Ivy League.
You can save even more money if you go to a community college first then transfer. Community colleges are even cheaper and you'll also save money on room and board because you'll be commuting.
You can also save a lot of money by commuting to school. You might find that living in residence halls or dorms isn't all they are cracked up to be anyway. Commuting can save you a lot, especially if you live close by and don't have to pay much gas.
A final way to pay for college is to work. Get a part time job during the semester and work full time over break to save the most money possible.
About the Author:
Trying to find the best college loans? Avoid college loan repayment and try to pay as much for school as possible without loans.
posted by Credit Counseling at
1:46 PM
0 Comments
The economy is unstable and the stock market has been take us down memory lane back to the days of severe recession.
Right now stocks are actually pretty risky and if you are bank rolling on the stock market you could end up losing the money you invested, not just any profits you have made.
Briefly there are 8 points you should take into account to enclose the strength of your familys finances and their hope and dreams. Oh by the way, please avoid the mistake of relying 100% on your 401K to assist you through a tough time:
1.Depending your current financial situation, you should be saving 30-35% of your income into an interest bearing accounts fro example a bank savings account or credit union CD's. Here s why, you can get a rapid return over a shorter period at a elevated interest rate, without taking any more risk. When they the period has matured, simply transfer these funds into different high interest bearing CD and simply continue to reinvest the original amount and all of the interest you earned. The secret is to grow the CD to a optimal size so that you can split them into 2 CD's, keep investing the funds and simply observe the rapid growth due to the power of compounding interest, i.e. without taking any material risks. This will allow you to move the funds into the stock market when the time is right or once you have done your home work identifying potentially good stocks.
2. Move a portion of your 401K into an Roth IRA " the point is not to take all your money but rather just a portion of your employer sponsored 401K plan especially if your employer has a matching contribution to your 401K. This is free money for you to grow your 401K.
3. Speaking of bonds...your money is far safer in a bond than stocks and you don't have to worry about a stock falling and taking your investment with it.
4. Clear your debts before retirement. There is nothing worse than retiring and having to work at your local taco stand because you still have debt to pay off and can't enjoy your golden years. There you are standing next to some kid young enough to be your grandchild and having to call him/her boss. That is not a fun retirement.
5. Have the ability to become mortgage free while at an early age. Use the latest mortgage acceleration strategies available to you and become debt free faster so that you can pay off your mortgage 15 years faster without changing your lifestyle or paying extra towards your mortgage.
6. By creating an emergency reserve in a separate financial company or bank, which is not linked to your current bank account, will allow you to avoid little withdrawals that will eat up your emergency funds.
7. When considering your insurance costs, a great idea is to have your home insured at the replacement value, not market value of the home. The same principle will apply for your car. You do not have want to have your car insured at the minimum state value when you reside in a better district or neighborhood. The idea is to have a better insurance coverage for your lifestyle and you may want to possibility of having umbrella coverage to reduce your insurance cost.
8. Getting sick or injuring, yourself could deplete your savings or 401K if you do not have proper Health insurance. Just to elaborate, imagine slipping in the bathroom or injuring your knees. Therefore, you know that you could pay in the region of $6,000 just for the surgery and well over for doctors visits. Which is ridiculous.
The goal is to begin working on one item at time so that you do not get overwhelmed. The key is to set a timeframe and ensure you are able to complete each goal to protect your retirement income and your family in retirement.
Right now stocks are actually pretty risky and if you are bank rolling on the stock market you could end up losing the money you invested, not just any profits you have made.
Briefly there are 8 points you should take into account to enclose the strength of your familys finances and their hope and dreams. Oh by the way, please avoid the mistake of relying 100% on your 401K to assist you through a tough time:
1.Depending your current financial situation, you should be saving 30-35% of your income into an interest bearing accounts fro example a bank savings account or credit union CD's. Here s why, you can get a rapid return over a shorter period at a elevated interest rate, without taking any more risk. When they the period has matured, simply transfer these funds into different high interest bearing CD and simply continue to reinvest the original amount and all of the interest you earned. The secret is to grow the CD to a optimal size so that you can split them into 2 CD's, keep investing the funds and simply observe the rapid growth due to the power of compounding interest, i.e. without taking any material risks. This will allow you to move the funds into the stock market when the time is right or once you have done your home work identifying potentially good stocks.
2. Move a portion of your 401K into an Roth IRA " the point is not to take all your money but rather just a portion of your employer sponsored 401K plan especially if your employer has a matching contribution to your 401K. This is free money for you to grow your 401K.
3. Speaking of bonds...your money is far safer in a bond than stocks and you don't have to worry about a stock falling and taking your investment with it.
4. Clear your debts before retirement. There is nothing worse than retiring and having to work at your local taco stand because you still have debt to pay off and can't enjoy your golden years. There you are standing next to some kid young enough to be your grandchild and having to call him/her boss. That is not a fun retirement.
5. Have the ability to become mortgage free while at an early age. Use the latest mortgage acceleration strategies available to you and become debt free faster so that you can pay off your mortgage 15 years faster without changing your lifestyle or paying extra towards your mortgage.
6. By creating an emergency reserve in a separate financial company or bank, which is not linked to your current bank account, will allow you to avoid little withdrawals that will eat up your emergency funds.
7. When considering your insurance costs, a great idea is to have your home insured at the replacement value, not market value of the home. The same principle will apply for your car. You do not have want to have your car insured at the minimum state value when you reside in a better district or neighborhood. The idea is to have a better insurance coverage for your lifestyle and you may want to possibility of having umbrella coverage to reduce your insurance cost.
8. Getting sick or injuring, yourself could deplete your savings or 401K if you do not have proper Health insurance. Just to elaborate, imagine slipping in the bathroom or injuring your knees. Therefore, you know that you could pay in the region of $6,000 just for the surgery and well over for doctors visits. Which is ridiculous.
The goal is to begin working on one item at time so that you do not get overwhelmed. The key is to set a timeframe and ensure you are able to complete each goal to protect your retirement income and your family in retirement.
About the Author:
To determine how you can live a debt free lifestyle go directly to Mortgage Free Lifestyle Calculator and simply enter your information to gain access to a wealth of free information and guides
posted by Credit Counseling at
11:56 AM
0 Comments
