PREPARING TO BUDGET
One of the biggest keys to successful financial structure is to put in place a budget and stick to it. A budget is the best way to get a grip on your spending and making sure that your money is being used in the way that you want it to be. Life on a budget is a necessity and so if you haven’t been living on a budget, there is no time like the present to get started and the following information may be helpful in getting started.
Creating a budget generally requires taking the following three steps.
1. You must track your spending to figure out your current spending patterns. You can’t change what you don’t know about.
2. You must evaluate your current spending and set goals to take into account not only your day to day living expenses, but also your long term financial goals.
3. Continue to track your spending to make sure that it is within the guidelines that you have laid out for yourself.
PITFALLS TO WATCH OUT FOR
Cash leaks. If you are spending money and you don’t know how much or where it went, then you have a leak. In general, if you are well budgeted, then you should be able to predict how much cash you need to take for the week, and that should be it. There should not be constant runs made to the ATM machine or bank, this shows that you are not budgeting effectively.
Spending More Than You Have. This is a common problem in most households, but you really need to come up with a reasonable budget and then stick to it. Overspending causes debt, and once debt takes over, it can be difficult if not impossible to overcome, so don’t fall into the trap of spending more than you make.
Don’t Confuse Luxuries With Necessities. Understanding the difference can be the key to making a realistic budget. Cable TV, cell phones, internet service and fast food, are not necessity items, even though many people try putting them in that category. It is important to not try and fool yourself into thinking that you can’t live without these items.
Don’t Count On Windfalls. When you are figuring out how much money you can live on, don’t include in your budget things like bonuses, tax refunds, or investment gains. The extra money from such items may be nice, but shouldn’t be figured into your income.
Watch Out For Spending Creep. This is what happens as you begin to make more money, you begin to spend more money. You are much better off sticking to the same monthly budget and putting the extra income into your savings.
Depression…A Time For Giving
One thing that can always be counted on is the American spirit, which overrides everything else. In the times of the Great Depression, those who were down on their luck, would look to those that were better off for help. In these uncertain times, it is important to remember those who are less fortunate than us. It is important to realize that even if you are needing to cut back, there are those who are hungry and who are unable to feed their families now. It used to be that we would send off our aid around the globe to help others in need, but now more than ever there are people right here who are in need of our help and support.
The thing about the needy is that they are not all wearing signs or standing on the street corners. As a matter of fact, many of those who are truly in need, would never dream of degrading themselves and their families like that. A recent survey showed that at least 1 in 8 American’s does not have enough to eat. The statistics for those without health insurance is even more bleak. Whether they be a neighbor, clerk at the local store, or a nearby friend, your help is needed. Often, when times get tough, people begin to hoard, worried about the future. It is important that in these difficult financial times, that we reach out to one another, trying desperately to see the need in someone elses eyes. It is extremely important that we not turn our thought away from those less fortunate than ourselves. This is the time for us to show the loving spirit that connects us all, so take some time and donate today. Whether it is food, clothing or money, dig deep to help someone who is truly in need. We can make a difference together.
Thoughts About the Stimulus Package
Here we are, with a “new” stimulus package. I am afraid that pumping non-existant money into an already failing system is just wrong. We are all just so hung up on our stuff, that the thought of giving it up scares us silly. The truth is when the fountain was overflowing, we all drank, and now that there is a crunch we ALL need to cut back to the bare essentials. I find it amuzing, not really, that our government is cutting back funding for education while our local power company just paid $250,000 in a small town to put a new shelter in a local park. Do they not get it? No, truly none of us gets it, because if we did we would just ride this economic crisis out allowing those who are living above their means to have to cut back. Instead, what is happening is the big “power” company’s in this country are saying, not us, we shouldn’t have to cut back, however, all that they are really doing is putting the burden on us to carry them, and that just isn’t right.
It is a time for consequences and for those who have been living within their means, it should be okay. Sure, I think that the government should help out those working folks who are facing unemployment because of this madness, however, everyone else and their bonuses and oversized homes, need to just take a good hard look at themselves and how they are living above their means, and they need to change. As long as we continue to provide them with the money that they don’t have to feel the pinch, then we are just feeding their dilusions and that is what got us here in the first place.
Keeping More Of Your Money By Getting Free Stuff
With financial times being hard and more and more people becoming unemployed , things are looking a little grim. For some they are really struggling, however there are some people out there who are just cutting back and keeping their fingers crossed. In any case, no matter who you are or what type of life you are living, there obviously have to be some changes with prices rising and less and less companies and people being able to keep their heads above water. Well, I have just come across some very good ideas for getting things and and giving them away for nothing. I have found a web site called freecycle.org, and this site does listings for people just giving things away. The things that people are getting rid of vary from home furnishings to bags of old newspapers, and the most amazing thing is that pretty much everything goes. There is also a way to put on what you are looking for, however you are only encouraged to put a wanted ad up about once a week. This site is really for those looking to unload. Some things are old, but some are in excellent shape and the best thing they are all absolutely free for the picking up. The groups on this site are divided up into areas and so you choose an area close to where you live, so that you can easily exchange with others in your area. It is incredible. I have only been a member for a few days, and there are lots of good things that have been listed just in that short a period.
This site is not meant to barter or trade, it is solely for those looking to give away stuff, or get stuff for free. Some of the best items I have i got for free and that was even before joining this site. For instance a friend of mine was getting rid of the stuff in her father’s house for him, and I got a chest freezer for free and had it delivered and put in place for nothing also. I also got a couch for nothing, a dining room set for free, and got a foosball table in exchange for some massage chairs one time. There are lots of opportunities available, and this site helps put them all together. So be sure to tell your family and friends to get online and check it out.
Finances Getting You Down…It Could Be Worse
These days finances are on the minds of most American’s and probably a lot of our international counterparts as well. We are all thinking, how will we make it, will we be able to make ends meet, or are we going to be facing unemployment over the coming years? Well, I know personally many a day, I will wish that I had more, as I am sure is where a lot of people are at. Wishing that you were one of the wealthiest people in the world, so you just didn’t have to give money another thought…Am I Right?
More money may not be the answer as a recent trend around the globe is showing wealthy businessmen committing suicide due to the tough financial times. Personally, I think it is very sad that so many men are defining themselves in such a way that without money they are completely useless to their families and to society in general. Sure we all know that men tend to identify with being the bread winner and that is there primary role in most families, however isn’t it sad that these big wig executives are leaving behind wives and children without even so much as a second thought about. Perhaps they only seem to have it all, but I can assure you that these children would have been better off to have a father in their lives, even if they had to live a meager lifestyle. Someone to show them that when the going gets tough, the tough get going, and not check out.
I quite honestly am glad that I don’t have so much money that to be penniless would devastate me or cause me to kill myself. I have my family and that is where my priorities lie. Let’s focus on all that we do have in this life and not just the money, after all it is really just green paper…isn’t it?
Obama Economic Stimulus, Will It Work?
Most American’s are thinking that with a National Debt of over 10 Trillion dollars why is this guy already spending this much money when he hasn’t even taken office yet. Well, on some level, we all are aware that spending is actually what keeps the economy going, but let’s face it, we also know that we need our money right now, and most people are not running around spending all that they have. So why does Obama think that his stimulus package will work when Bush’s didn’t.
The answer to that is both complex and simple. When Bush set out to stimulate the economy, he did so by sending checks to individuals and families. Great in theory, however most American’s who were already struggling used those checks to pay bills or stashed it away for a rainy day. Therefore, we did not all run out and shop for new items and that in turn did not do for the economy what Bush had hoped.
In Obama’s plan, which does include checks to the American public, it however does not rely on them to be the stimulus. It is offering a much more comprehensive and multi faceted approach to stimulating the economy which includes sizable tax deductions for businesses for each new employee they hire on. This will help create jobs, which in the long term seems like it will have a bigger impact on people’s spending. After all, you can’t be out spending if you don’t have a job at which you can earn some money.
If you look over the plan you will in fact see that Obama’s plan will help stimulate the economy which will not only help the individuals but also the businesses and the unemployment rate. Overall, this plan is cheap compared to how much Bush has spent on bail outs in the last three months. At least the Obama plan stands a chance.
Do You Know Where Your Money Is?
I think it is amazing that so many people know how important it is to save for their retirement, and still when you ask them about their retirement funds they have no clue. They don’t know whether they are in stocks, bonds, or funds, they don’t know how much they are yielding, how much they are contributing or even how much money they have in there.
It is important that you not only begin saving for your retirement, but that you make the most of the money that you have invested in there. Right now the market is up and down, and although that has a few people sitting there hoping that they don’t lose anything, this is also a great time to get in on the ground floor of a company that will weather through the storm. Taking this opportunity to by some really good stock cheap is a wise move, and as long as you don’t need your money in the next few years, this really could be the opportunity you have been looking for to make your retirement fund grow in ways you never thought possible.
It is okay if you are unsure as to what you are doing. If you really don’t understand the whole thing, then seek out some financial advice. It is really important not only to save for your future, but also to take advantage of the opportunities that this current economy may be providing you with. It is a good idea to put money into your retirement, but if you have it sitting in a low interest fund, then you may not be making the most money that you can. It is time to look towards the future, and you can begin that process by first understanding your money and knowing where it is.