Thoughts on Debt

Many people find themselves in hard financial times and are wondering what they can do to dig themselves out of the hole they are in. Well, the key to it all is devising a budget and sticking to it. Many of us believe that we are already living on a budget, however, unless your budget includes a savings, then it is really not a budget. A budget is not scrimping and living paycheck to paycheck paying whatever bills you can each week, it is much more than that. It is a financial plan, the foundation by which you determine how much you can afford to spend on the extras. Built into your budget must be a savings plan that will allow you to put no less than 5% of your income aside for emergencies. I personally prefer a two savings plan, where you divide your savings into 2 separate accounts, one for true savings and one for savings for special things that you would like to do like a vacation, or for a special item you want like a new TV. This is a good way to be able to reward your hard work saving and feel a benefit from it. It will make you feel less deprived in the long run if you reap some benefit from the savings.

In order to create a budget your monthly income must exceed your monthly expenditures. For instance, you can not budget your money if your monthly expenses are $3000 per month and your monthly income is $2400, this will not budget out. If after writing down your expenditures for a month and your income, you find yourself in this boat then it is time to trim the fat off your regular monthly spending and if you still can’t get your expense low enough then it may be time to consider picking up an extra job. The fact is that a budget is a plan by which you spend, and without one you are free falling into a life of poverty.

Keeping your life in balance will allow you the peace and harmony that you seek from life. Having enough money to pay the bills with a little left over will allow you to sleep better at night without worry. Take the time to work out your budget and you will see how easy it is to keep your finances under control.

Many people find themselves in hard financial times and are wondering what they can do to dig themselves out of the hole they are in.  Well, the key to it all is devising a budget and sticking to it.  Many of us believe that we are already living on a budget, however, unless your budget includes a savings, then it is really not a budget.  A budget is not scrimping and living paycheck to paycheck paying whatever bills you can each week, it is much more than that.  It is a financial plan, the foundation by which you determine how much you can afford to spend on the extras.  Built into your budget must be a savings plan that will allow you to put no less than 5% of your income aside for emergencies.  I personally prefer a two savings plan system, where you divide your savings into 2 separate accounts, one for true savings and one for savings for special things that you would like to do like a vacation, or for a special item you want like a new TV.  This is a good way to be able to reward your hard work saving and feel a benefit from it.  It will make you feel less deprived in the long run if you reap some benefit from the savings.

In order to create a budget your monthly income must exceed your monthly expenditures.  For instance, you can not budget your money if your monthly expenses are $3000 per month and your monthly income is $2400, this will not budget out.  If after writing down your expenditures for a month and your income, you find yourself in this boat then it is time to trim the fat off your regular monthly spending and if you still can’t get your expense low enough then it may be time to consider picking up an extra job.  The fact is that a budget is a plan by which you spend, and without one you are free falling into a life of poverty.

Keeping your life in balance will allow you the peace and harmony that you seek from life.  Having enough money to pay the bills with a little left over will allow you to sleep better at night without worry.  Take the time to work out your budget and you will see how easy it is to keep your finances under control.

Well, we have already arrived at the time and place that we should have been saving for all these years, and here we sit with costs of everyday items rising daily and without a savings it seems near impossible to pay the bills much less save some money.  I am here to tell you it is completely possible to save money, but it does take work and a conscious mindset towards savings.

The first thing that you must commit to is that the money that you save on this and that must be put aside.  You can not take that money and spend it on extras, extras are out.  All the money that you save must be put away for a later need.

1.  Find a bank with interest and little or no fees, and don’t keep too many accounts open this can cost you more.  I have recently found that credit unions offer many more benefits from banks without losing a step.  My local credit union charges less in fees and also supplies me with more interest than any account I have seen of late.  This is savings + interest and is worth looking into.  Also there are banks that offer incentive programs with either cash back or one’s that will match your savings money or something.  Looking into your options is just one way to put a few extra dollars in your pocket.

2. If you often use credit cards, stop.  Consolidate your cards and pay them down or off.  I know this sounds like spending money, but it will save you a lot in costly interest and fees and leave you with less debt which is always good.  Shop around for the best rates you can find, these companies want your business and have the ability to offer you some really great deals.

3. Use coupons for everything.  There are coupons for oil changes, department store discounts, and restaurants and fast food.  Be sure to clip and save all coupons in an organized fashion.  These can really add up especially when they can be combined with sales and discount items.

4. Change all the bulbs in your home to energy saving bulbs.  Especially in the winter this savings will really add up.  Don’t pay retail for your bulbs, go online and find a deal.  You can get 13W bulbs for about $1.50 each so shop around.  This is a big savings over the $4.00 per bulb that they are going for at Walmart.

5. Find more energy efficient ways to heat and cool your home.  Wood is an excellent source of heat and if you have a fireplace on your house it can serve as a good source of supplemental heat.

6. Walk instead of driving.  If you are going somewhere local you can save on fuel costs and get some exercise.  As long as the weather is good take the kids or the dog.  Good bonding time as well.

7. Don’t over mow the yard.  With the cost of fuel being so high, allow the grass to be a little bit longer, and when you cut it, cut it really short to stretch out the time between mows.

You can find other money saving tips on the Consumer Federation of America website.  Just be sure to calculate out your savings and put that money aside.  You will be glad you did, it will add up.