The number one goal in budgeting is that you spend less than you make. This applies for personal finances. It is not just for businesses. You as a person or a family are an economic unit that needs to operate like a business. To be financially sustainable as an economic entity you must manage your spending so that you spend less than your income every day, every week, every month and every year. This is the key premise to successful budgeting. It is an attitude. You need to learn this attitude. It is the old adage…You need to have someone teach you how to fish not have someone give you some fish. The key to the key is to action the attitude of spending less than you make.

You need to look at the fundamentals of your budget. There is the income side and there is the spending side. On the income side you may have a nice steady job where you get paid bi-weekly. Other folks have jobs or businesses that pay in cycles or are seasonal. There are budgets so that you can get a snapshot of your income. This way you know when your income comes in. The idea of a budget is that when you know when your income is coming in you can plan how to spend it so that you spend less than you make. If you are on a bi-weekly schedule it is routine. If you are on a seasonal income where you make most of your income in 3 or 6 months of the year, you need to plan your spending so that you save money when you have. You save the appropriate amount to spend when the income is low in the off season. (more…)

I have been living on the 60/40 budgeting rule for more than three years now. I had read on this subject in a magazine article and in a conversation with a colleague, I found out a simple system in which my colleague has been using for years.

The Rule (60%)

The 60/40 rule simply says that 60% of your gross income should go to Committed or Fixed expenses. These expenses are your Overhead expenses, meaning the basic things you need to pay to survive. They include:

• Basic food and clothing needs.
• Rent or Mortgage
• Utilities (electricity, water, internet, cable subscription etc.)
• Insurance premiums.
• Charitable contributions.
• Taxes.

It looks simple enough but in my experience putting all committed expenses into 60% of my income was a tough thing to do. But don’t give up as it is very possible to achieve this. (more…)

Are you someone that spends money like it is going out of style and you know this is going to get you in trouble?  Maybe it already has gotten you into trouble and you are just to the point where you can no longer take it anymore.  There are ways to get yourself out of those debts and you can use a budgeting program to help you get back on track.  Here are some tips to help you right off the bat with your budget.

First, you need to be able to admit whether or not you are good with money.  If you really want to prove this to yourself, just do one simple test over the next month.  Every single time you make a purchase, whether for 10 cents or $1,000 get a receipt.  Save all of these receipts in a shoebox for one month.  At the end of the month add these up into categories like food, drink, gas, bills, rent, needs, and wants.  You will see where you really spend your money and how much.  This will open your eyes. (more…)

Nearly everyone can benefit from a budget. Creating a budget is really about keeping tabs on your money and knowing what your limitations are when it comes to expenditures. Whether you’re trying to climb out of debt or deciding how to enjoy a surplus, a budget puts you in control.

Make a budget: Making a budget is a great way to keep track of your finances and calculate exactly how much money you are making and spending each month. An accurate budget will allow you to identify all of your necessary expenses, which in turn will give you the ability to calculate exactly how much you can afford to spend every month so that you can live a debt free live. Spend less, and save more. Creating a budget is an important first step to building sound money management skills. It is an estimate of income and expenses over a period of time. Sit down and make an account of all your income and expenses. First, list all your income. Next, list each of your fixed expenses, the ones that don’t differ from month to month. Those may include your rent or mortgage payment, your auto loan payment, and your utilities if you’re on a budget plan to pay for them. (more…)

To put it simply wealth is the money you don’t spend. If you bring home $275 a week and spend $273; Congratulations! You’re $2.00 Wealthy! If I would have followed my own advice starting back in 1974 I’d be writing this article from the patio of my double-wide in New Port Richey, Florida instead of this dreary suburb of Detroit on a snowy afternoon.

The way to wealth has nothing to do with how much money you make but on how much you spend. In other words the sooner you get your spending under control the wealthier you’ll be. The lifestyle we choose will determine how long, if ever, we reach our goal of financial independence at retirement. There are so many investment vehicles out there that are relatively safe and if you put the thousands of dollars into them, will return many hundreds of thousands (possibly millions) of dollars back. But where do you get those hundreds of dollars each month? You determine that by the lifestyle you choose. (more…)

We are all still feeling the recession, and that will likely continue for some time. So, keep reading to find out 5 top tips to beating the recession.

Tip 1 – Keep Marketing – Your competitors will!

In any kind of recession, businesses can be lured into slashing their marketing budget, simply because it seems like an easy area to make quick savings. However, marketing is a necessity, not a luxury as some people may think. In a recession, you want your business to keep on growing, and for that you will need marketing to keep on attracting new customers. In any recession, the market becomes a lot more competitive, so if you aren’t marketing, or you have reduced your marketing, and your competitor has increased theirs, who do you think will be more successful? Smart companies do more marketing, not less.

Tip 2 – Get your marketing in order

There are two essential points that you need to look at to make sure that you are well positioned throughout a recession. The first is your branding; does it look friendly, professional and reliable? The second is your website. Nowadays, everyone will expect you to have a website, but make sure if you do have one, it is properly designed. A bad website is almost worse than no website at all. (more…)

In the wake of the Global economic crisis, a lot has unfolded while others have folded, including companies and mega-multi nationals. This is not another article about the economic meltdown that has ravaged the economy of nations but about how we can make sense of all of this – that is if we can, in the first place.

Even before the meltdown and then the recovery (which many say is still fragile), people have been seeking ways to make their lives better by earning more. It still remains a mystery to millions of people how the rich get richer i.e keep making more money and the poor, well, never seem to get ahead apart from may be occasionally winning the lottery or being left a fat cheque by a diseased relative. (more…)

I have considered myself to be good at balancing my bank account for many years. For some reason, this year has deflated my ego and increased my distaste for certain banking practices, specifically overdraft fees. After never really having these, I had 5 charged to me on two different occasions during the second half of the year…at about $34-38 each. I was suddenly out a nice chunk of change that continued to bring me below the magic zero balance. The irony in both cases is that I had deposited money in the accounts on both occasions, which would keep me in the black.

On the second occasion, I even have an ATM withdrawal receipt from KEYBANK stating I have positive funds in my balance and yet, this same transaction was listed as one of the overdrafts. I was extremely disappointed with the bank at this point and would have much rather seen a note on the ATM machine stating something to the effect of “Sorry, but due to insufficient funds, your transaction has been cancelled.” Instead, the banks easily give money and then fine you for it later, which seems a little unethical to me. With the technology that exists today to instantly wire funds anywhere in the world, they should be able to figure out how much really is left in my account, so that this does not happen again. If I were to use the card at a store (as it is a debit card) I would be nothing more than happy to get DECLINED! (more…)

The costs of food and household items are rising and many household wages are falling. How do you choose between food on the table or power for the house? This is a problem millions of households are faced with each week. If you are looking for a place to turn to find relief consider couponing. Couponing has been around forever and you likely remember seeing your mom and her friends sitting around the dining room table every Sunday morning gossiping and clipping. This is because she knew that with a little work one day a week she could save money and still provide what her family needed. Couponing has come a long way since those days and now coupons not only still arrive on Sunday in the local newspaper, but are also available online through printable coupons and downloadable coupons.

Many companies offer the ability to select just the coupons you need and to print them from your home computer and printer then take right to the store and use. This is a great tool and saves you the time of clipping and the waste of paper coupons. Electronic or printable coupons are popping up more and more and include a new concept of coupons that can be downloaded directly onto your store membership cards and scanned at the register for the ultimate in couponing ease. (more…)

January is traditionally a big month for massive sales. This means that you, the consumer, feels that there are going to be savings and deals that just CANNOT be missed. However the reality is that it is likely that you can miss these offers and deals and they will be along again at various other strategic sales throughout the year. After all the holiday season is likely to have left you pretty empty in the wallet department so it’s not the best time to spend on anything. Especially if you have to cut into savings or overdraft.

This article hopes to give you some tips to help avoid overspending and pointless spending during this January.

1. Only spend gift cards that you received during the month of January.
2. Ask yourself exactly why you need the must have offer. If there is no valid answer, you don’t need it!
3. Don’t leave the house or go anywhere near the stores, this will just tempt you to spend. (more…)