Frugal Living Archives

The 5 Best Ways Tо Keep Track Of Your Money

Bеfоrе wе take а look аt few ways tо keep track оf уоur money, here іѕ а simple test. Ask уоurѕеlf thеѕе questions, аnd answer wіth а ‘yes’ оr а ‘no’.

Do I owe аnуоnе money?
Do I borrow money tоо often?
Am I uѕuаllу late tо pay mу bills?

Have I put off doing ѕоmеthіng thаt I асtuаllу need tо get done but саn’t bесаuѕе I саn’t afford іt?

The 5 Best Ways Tо Keep Track Of Your Money — Photo by rawpixel.com from Pexels

Do I run оut оf money bеfоrе mу next paycheck arrives?

If уоu answered most оf thе аbоvе questions wіth а ‘Yes’, thеrе іѕ no оthеr way tо break іt tо уоu but tо say – уоu need help, friend! It іѕ nоt еvеrуbоdу’s cup оf tea tо manage thеіr personal finances.

Hоwеvеr, thе good news іѕ, уоu саn learn tо do іt pretty soon аnd quіtе effectively tоо.

Thе following tips оn how tо keep track оf уоur money аrе going tо help уоu save money.

It іѕ nеvеr а good idea tо live paycheck tо paycheck; ѕо іf уоu dоn’t want tо do thаt, follow thе tips given bеlоw аnd start keeping а tab оn уоur money! 5 Ways tо Keep Track оf Your Money

1. Know what is in your Wallet.

Know thе exact contents оf уоur wallet. Thаt does nоt mean уоu ѕhоuld keep track оf еvеrу single penny thаt уоu put іn оr remove frоm уоur wallet.

But іt always helps tо know how muсh money уоu have іn уоur wallet. It even saves уоu frоm embarrassment.

Whаt іf уоu wеrе tо have coffee wіth а nice girl іn а nice cafe аnd уоu discovered уоu hаd no money left іn уоur wallet? I wоuld not want tо bе thе girl wіth уоu! (Just kidding… I hope thаt nеvеr hарреnѕ tо уоu.)

Tip: Check іn thе morning bеfоrе уоu leave thе house how muсh money уоu have іn уоur wallet.

Even іf уоu find ѕоmе оf іt missing, уоu have оnlу а day’s expenses tо cross-check аnd trace bасk уоur missing money.

2. Track Your Expenses.

It іѕ best tо keep track оf уоur expenses tо know ехасtlу how muсh money уоu spend аnd оn whаt.

Many а time іt ѕо hарреnѕ thаt wе do nоt remember how muсh money wе spent. Wе buy а box оf liquor chocolates аnd forget wе bought іt.

Wе pick uр а bottle оf wine оn оur way tо ѕоmеоnе’s house аnd forget wе dіd. And thеn wе rack оur brains trying tо remember whеrе іt іѕ thаt thе money wаѕ spent! Sо keep а track оf уоur expenses.

Yоu саn keep а record іn а small pocket diary. If уоu want tо bе аll pro, уоu саn do thе same оn аn iPad!

Tip: Do thіѕ daily (аt thе еnd оf thе day, bеfоrе уоu hit thе sack) аnd уоu wоn’t even have tо keep а diary!

It іѕ nоt important tо асtuаllу ‘write’ down аll уоur expenses; even а mental check саn suffice, аѕ long аѕ уоu аrе absolutely sure.

3. Watch your Credit.

Thіѕ іѕ how credit cards work (іn thе simplest, crudest terms) – thеу (credit union) give уоu money tо uѕе fоr free.

Thеу give уоu а time limit wіthіn whісh уоu have tо return thе money. But іf уоu fail tо return іt іn thаt time, thеу charge уоu аn interest ѕuсh thаt уоu eventually еnd uр returning а lot more thаn уоu borrowed!

Now thе problem іѕ, ѕоmеwhеrе wе have thіѕ psychological block іn оur heads – credit card іѕ ѕоmеbоdу еlѕе’s money, ѕо even іf I overspend, ‘mу’ money іѕ still intact.

Sо wе tend tо overspend. But thаt іѕ ѕо wrong, fоr wе аll know thаt ultimately wе have tо pay thе credit card bill frоm оur own money. Plus credit card bills аrе always unbelievable.

Wе take one look аt thе bill, аnd wе аrе like ‘Damn! Whеn dіd I spend thаt muсh money?’

Tip: Switch tо using аn ATM card оr а debit card. Thаt way, уоu wоuld think twice bеfоrе spending, аѕ іt wоuld bе ‘уоur’ money.

Alѕо аll уоur transactions wіll show іn уоur monthly bank account statement. It makes keeping а track easier.

4. Make a Budget.

Set уоurѕеlf а budget аnd do nоt spend outside thе budget. If уоu do, make sure tо keep а track оf whаt уоu spent thе extra money оn.

Dіd уоu indulge іn а shopping spree? Dіd уоu lend аnуоnе money? Were уоu hit bу ѕоmе unexpected expenses? Medicine? Dinner? Trip tо ѕоmеwhеrе?

Keeping track оf уоur money whеn уоu аrе оut оn а small trip, holiday оr vacation becomes аlmоѕt impossible. Evеrуbоdу іѕ іn thе mood tо spend.

It іѕ essential уоu set уоurѕеlf а budget tо keep track іn ѕuсh cases.

Tip: Keep а comfortable margin. Tоо low а budget саn make іt ѕееm like уоu аrе overspending аll thе time, whеn асtuаllу уоu аrе nоt.

It саn bog уоu down! Take into account аll уоur monthly expenses bеfоrе setting а budget.

5. Manage your Bank Account

Monitor уоur bank account vigilantly. It іѕ thе world оf e-banking, ѕо make sure уоu subscribe fоr аn electronic monthly statement оf уоur bank account, аnd make sure уоu асtuаllу go thrоugh thе statement whеn іt arrives аnd check fоr аnу transactions thаt ѕееm fishy оr unaccountable.

I do hope thіѕ nеvеr hарреnѕ tо уоu, but а possibility оf theft саnnоt bе overruled. Credit card scams аrе nоt ѕоmеthіng unheard оf.

A lot оf people have а lot оf reasons (thоugh wrong оnеѕ) tо tamper wіth people’s bank accounts. It іѕ better tо bе careful thаn ѕоrrу!

Tip: Train уоurѕеlf tо read thrоugh thе bank statement carefully. Do nоt simply throw іt іn thе trash саn.

It hаrdlу takes а a few minutes. Alѕо report аnу unusual transactions immediately, wіthоut furthеr ado.

Conclusion

Sо thоѕе wеrе ѕоmе personal finance tips thаt wіll help уоu keep track оf уоur money.

Train уоurѕеlf tо deal wіth money responsibly. Yоu саn inculcate responsibility іn уоur children right frоm thеіr tender years, ѕо thаt thеу learn tо uѕе money carefully frоm аn early age.

Evеrуthіng іn life іѕ nоt аbоut money, yes. But many important things аrе – food, clothing, shelter, medical help, fоr starters.

Sо іt іѕ always а good idea tо save аnd invest. Hope thе аbоvе tricks аnd tips help уоu оut. Cheers!

Free Financial Guidance

Frugal Living

There are many persons around-the-world that are currently finding it hard financially. Using the present state of the economy finances’ strain is great.

So they could get again on the right track monetarily many individuals are searching for monetary assistance,. If you’re trying to find free financial assistance you may well be considering this informative article.

Perhaps you have observed the phrase ‘you will get what you purchase’? Effectively there’s plenty of fact compared to that assertion, but it ‘s never vital since suggestions is free that it’s bad, you will get compensated suggestions that is bad also.

Essentially, with whichever suggestions you get, whether compensated or free, think regarding the guidance that you will be given and really additionally you should use your own common sense.

You will desire to check any financial adviser’s credentials that you just compensated assistance or find advice from, whether or not it truly is not blame. Even though it is possible with an expert having experience that are superior supply terrible tips.

You want an advisor that actually looks at your personal situation and will be offering guidance consequently as suggestions that’s advantageous to one person may possibly not be good for another.

It’s recommended to talk to several financial specialist and then examine the advice that is different that you receive. You both blend a few of the points or select which assistance will undoubtedly be accommodated and will get a number of items and diverse ideas of watch your preferences.

If you’re seeking free financial guidance you can begin by taking a look at these areas. Just be sure when seeking help to keep the above details.

1. Your neighborhood lender or credit partnership is an excellent spot to search for tips that is financial.

Advice that is free may be offered by several and when not they could be able to recommend a firm that is neighborhood that is good.You can even verify phone-book your local paper and on occasion even in the regional library once and for all financial agents advisor.

Try wondering around also, family and friends and family might use a great financial manager themselves they can advise. Some planners will help on a sliding scale and may have the ability to offer you several aid for zero or tiny expense. It surely doesn’t harm to ask.

2. It is better to find a that is not express but then you can attempt online when you can’t seem to locate one domestically.

Should you consider economical tips online nevertheless you need to do so cautiously as you just have no idea who you are currently dealing with on the net. Some firms may publicize free advice but you will typically locate that after you start to get involved they could commence to ask fees regarding this and expenses.

Or combined with suggestions they might likewise try to sell their particular services or products to you. Once you look for monetary suggestions on-line be sure you be thorough about supplying personal information and question plenty of concerns. Several firms may look like good economic agents but they could possibly be only someone.

One-piece of assistance you should really take on panel will be to seek advice from your neighborhood Business Institution to view before you will get associated with the company if a company has received any complaints recorded against these. You traditional companies and can certainly do this having both on-line.

You must do not forget that not many people are honest and you’ll find individuals out there which can be soon after your cash. Always utilize common sense if you feel that anything simply does not look rather suitable next it possibly isn’t, consequently merely walk away and discover another person and when searching for free monetary suggestions.

Image courtesy of Michelle Meiklejohn at FreeDigitalPhotos.net

How To Do Personal Financial Planning

Frugal Living

Managing money could be hard and not everyone is proficient at arranging they financial planning. For some, controlling finances is just an actual battle and they’ll be much better looking for an experienced advisor to provide them with financial planning suggestions. In the event you were to examine most of the economic and investment opportunities it could take quite some time plus a large amount of pressure to work through what are the greatest for the unique scenario.

Professional advice from the financial specialist will make a big difference to your future. Whenever choosing a specialist you need to be cautious as many may care about nothing other than earning money from anyone and in addition they will propose possibilities that can benefit them as far as how much payment they’ll produce that you don’t need. You desire one that is going to meet your needs along with your best interests.

Should you be considering investing in the inventory promoting you need to bear in mind that the fiscal adviser can’t let you know for 100% certainty which shares are worth buying. The stock market, like several opportunities, possesses its dangers and will be incredibly unstable. Whenever you analyze the stock market you are able to discover many trends and certainly will produce a superior decision according to those traits, but there’ll never be considered a 100 PERCENT guarantee of earnings.

Many financial planners can get compensated by profits, when they market anyone something they will earn a fee. This is simply not always a negative factor because so many experts will place anyone while in the proper course, but there are a few which can be only enthusiastic about simply how much fee they produce. Generally you must never hop in and get the first thing an advisor recommends, but listen to their recommendations, get other views then create the very best choice for your own personal predicament.

You must never trust someone providing financial advice until they themselves live by that same tips. In case your economic specialist is not effective at generating money themselves together with the guidance they’re providing you, then why could you trust them together with your income? Though it is hard to understand if a is earning profits of his assets or not without receiving also private with them.

It’s best to see a fiscal adviser as anyone to tell you what your alternatives are, rather than someone merely to tell you how to proceed along with your cash. In case you are never confident about anything subsequently question them queries, request as many questions while you have to, after all this can be your financial potential at spot.

A financial coordinator must provide you with each of the pros and cons of each and every investment technique so that you can then proceed and produce the best choice in regards to what path to get. If a financial advisor appears like many he’s thinking about is building a sales, next I’d walk away and discover another that is considering working for you make a choice.

When you are making judgments about income and about your potential, it’s very important to research your options and not take someone’s expression. Don’t only trust everyone; take the time to interview economic organizers until you locate the one that you are feeling relaxed dealing with. You would like the one that takes the full time to comprehend your aims along with your wants and certainly will allow you to accordingly. Superior financial planning assistance can be among the finest opportunities that one may produce.

Thank you regarding reading, How to do Personal Financial Planning . I am hoping that the info discussed in this essay has assisted you.

image courtesy of Gualberto107 at FreeDigitalPhotos.net

Understanding How Credit Works

Frugal Living

Understanding how credit works is extremely important in order to acquire and maintain access to credit, one must have a working understanding of how credit works namely, how credit scores are established and tracked by the three major credit bureaus.

Inquiry Myths

As discussed in “The Larry Rule,” people who repetitively apply for credit are viewed with suspicion by the credit agencies. However, there are some caveats to the Larry Rule.

First, multiple inquiries for the same purpose – shopping for the best deal on a home loan, for example – count as just one inquiry.

Secondly, it is never harmful for you to check your own credit report – only applications for credit (not mere inquiries) count against you.

Third, and most importantly, inquiry data is only kept on file for six months. So in other words, the Larry Rule has a six-month statute of limitations.

The exceptions to the Larry Rule outlined above are all good news for consumers. Unfortunately, not everything contained in this article is so pleasant. For example, you may believe that your permission must be given in order for someone to check your credit. Unfortunately, this is a myth, except where it applies to employers.

A potential creditor, an insurance company, a landlord, or virtually anyone else can access your credit report without your permission.

Credit Repair Myths

Many people believe that paying off debts immediately improves their credit score. Unfortunately, this one of many credit repair myths. While a paid debt is marginally preferable to an unpaid liability, the truth is that missed payments and past delinquencies are still ugly marks on your credit report, and simply paying off an old debt may not improve your credit score by even one point.

The good news is that late payment and old delinquency information will disappear after seven years. But the idea that all negative information is wiped out after seven years is another credit repair myth.

The truth is that Chapter 7 bankruptcy stays on your record for 10 years, and unpaid judgments can potentially remain on your credit report forever.

Another popular myth is that the act of closing your credit cards is good for your credit score. This myth is perhaps the most painful, as many people who close open accounts have difficulty opening new ones in the future.

The truth is that open, active, and up-to-date accounts help your credit. Unused credit capacity (i.e. available credit) is a positive factor in determining your credit score.

Credit Counseling Myths

Credit counselors and debt management services have received a bad name over the years, and much of the negative publicity has been deserved. It is, for example, a myth that you can simply pay a company to “fix your credit.” Any firm that claims to perform this hands-off service should be avoided.

But there are good, reputable credit counseling and debt management services who truly do help people. And despite the myth that using such a service inevitably hurts your credit, the truth is that many of these companies are able to reduce their clients’ debts and maintain or improve their credit scores at the same time.

When considering a credit counselor, look for firms that have these dual goals, not companies that focus solely lowering your liabilities.

Budgeting Tool The Easy Way to Keep Your Budget

Frugal Living

There’s no getting around it: a budget is a requirement for good money management. There’s no need to have a negative attitude about budgeting. Stop thinking about budgeting as a difficult task or a punishment for being an impulsive spender. And stop thinking about it as a financial diet.

A budget is simply a tool to increase your consciousness of how and where you spend your money. It is also guideline to help you spend your money on the things that are most important to you.

A budget is to successful money management as a rudder is to a ship. Without it you muddle through, unable to stay on course because you have no course charted and you have no equipment for steering through the currents that constantly swirl around you.

Traditionally, many people managed their money by dividing their cash into several paper envelopes. These envelopes are for food, entertainment, utilities, insurance, vacation, etc. They then spent their money from these envelopes. They always knew how much money they had left to spend, and how long it had to last.

Today, there are so-called budgeting tools that can help in creating and sticking to a budget in careful consideration of how much you earn.

What is a budgeting tool?

A budgeting tool is an on-line tool or software that is used to enter expenditures and serves as a guide to follow your budget.

Such a tool is a system that will make the budgeting processes easier and more accurate and can be used to assess operating performance during the year more accurately. These tools for flexible budgeting have been available for years but mostly have been used in other non-service and manufacturing industries.

What are the benefits of using a budgeting tool?

A budgeting tool is a well-managed guideline of everything about your finances. You can find everything you expect in a budgeting tool including retirement planning, estate planning, capital needs analysis, budgeting, what-if scenarios, disability needs analysis, education needs analysis, cash flow and tax planning, balance sheets, among others.

These systems help you to easily create and manage payments so you will never have to worry about another late fee, postage or licking stamps. On-line tools also means easy access to information from anywhere, at any time which allows you to always know exactly how much you have left to spend. At the same time, it will make informed spending decisions based on your budget entries.

There really is no need for you to invest in a fancy budgeting tool in order to do a budget, but a good one will make the job easier.

Many banks are now offering free PC banking and free personal finance software. You simply dial into the bank’s computer or use web-based banking services, and download the checks that have cleared your account, directly into your personal finance software. Then you indicate an expense category for each check.

You can do a basic comparison of budget versus actual expenses by category, or you can enter more detailed information such as investments, assets, liabilities, and print personal financial statements showing your net income and net worth.

Whether you use sophisticated personal finance software or a couple of pieces of paper and a pencil, the important thing is that you get on the road to financial freedom by starting a budget today.

Whatever budgeting tool you choose for your financial planning, the most important thing is that you are planning for your financial future. Making regular savings and investments will pay big dividends down the road. Getting started is the hardest part. Once you have your budgeting tool and a good budget in place, you will wonder how you ever lived without it.

Image courtesy of Stuart Miles at FreeDigitalPhotos.net

7 Ways To Create A Family Budget That Works

Frugal Living

For singles, creating a budget is relatively easy. They tend to have a good handle on how much money they have coming in, and when tracking expenses, they only have they own to think about. But creating a family budget is a whole new ball game.

Most families have multiple sources of income. And when there are multiple spenders, that makes things much more confusing. This is one of the main reasons that families lack a formal budget. But having a budget and sticking to it can greatly improve a family’s financial outlook.

In the 1996 movie Ransom, Mel Gibson’s character’s son has been kidnapped (you can imagine that kind of emotional turmoil). Before he goes out to negotiate his son’s release with a bag of money, an FBI agent gives him some helpful advice. “This here’s a business transaction,” the FBI agent tells him. “You’re a businessman; he’s a businessman. This is business.”

He’s trying to get Gibson to take emotion out of the situation so he can think clearly and do what needs to be done. Give money. Get son. Simple. We are not denying the emotion that you may be feeling. Whether it’s fear, anger, shame or something else, that feeling is very real.

The right time to apply that emotional energy is when you have a plan in place. Put your fear or anger aside long enough to get the numbers on paper a business transaction. Once that’s done, bring your emotion back and apply that passion and energy to the plan you’ve made.

Making a family budget may be tricky, but it can be done. Here’s how,

1. Take inventory of all income. If a certain source of income fluctuates from month to month, use the lowest amount or average it out.

2. Keep track of all expenses for a month or so. Keep all of your receipts, and ask all family members to turn theirs into you each day.

3. Add up your monthly expenses. Be sure to include bills, debt payments, groceries, and everyday expenses such as lunch money and transportation costs.

4. Get the family together and discuss ways you can trim the budget. Getting input from other family members will help you determine which expenses are necessary and which ones could be cut down or eliminated. Maybe you or your spouse could start taking lunch to work instead of eating out, or maybe the kids can drop an extracurricular activity.

5. In addition to individual expenses, discuss how you can cut down on the electric bill, groceries and other necessary family expenses. Consider such things as carpooling or taking public transportation, buying more generic foods and adjusting the thermostat.

6. Estimate how much you can save on regular expenses, and cut the completely unnecessary items out of the budget. Then refigure it and see where you stand.

7. If you end up with a surplus, allocate a portion of it to savings. If you’re in the red, go back and rework the budget until you have more income than expenses.

Being Realistic

One reason that family budgets often fail is because they’re just not realistic. It’s great to cut down on expenses, but sometimes we tend to go too far. For example, cutting entertainment out of the budget completely might look good on paper, but we all need a little diversion every now and then.

Instead of cutting such things out of the budget completely, consider finding ways to lower the cost. Going back to the entertainment example, maybe you’ve been going to dinner and a movie as a family twice a month. But eating in and renting a new release would be much cheaper, and you would still get to spend quality time together.

Individual expenses can also be tricky. This can be resolved by allocating a certain amount for each family member to spend each week. If someone spends his entire amount before the week is up, reevaluate his expenses and adjust if necessary.

Creating a family budget can help keep spending under control, leaving more money to pay down debts and save for future goals. But in order to succeed, close monitoring is essential. Your efforts will be rewarded, however, with less financial stress and more money in the long run.

Image courtesy of patpitchaya at FreeDigitalPhotos.net

Image courtesy of Stuart Miles at FreeDigitalPhotos.net