Payday is two weeks away and you are already feeling the pinch.Bills are piling and piling and piling.The savings you have in your bank is just enough to keep the account open, if you have any savings to speak of at all.Next thing you know, you've got to take your car to the mechanic; or your kid takes an emergency trip to the hospital; or the pipes in your house bursts and the plumber is ticking off the numbers in your head.Money - if only they grow on trees.Creating and balancing your personal finance may become an easier task, just as long as you create a set-up that works best for you.Although there are numerous how-to books out there about budgeting, everything boils down to your own personal needs, how much cash is flowing into your pockets, and what your short term and long term plans are for your money.Your budget is one of the main indications of how much cash you could actually spend.Unfortunately for many of us, we tend to spend more than we earn.So the objective for now is to live within our budget - which by the way, is easier said than done.This is actually easier to do if you have your own cash flow, and that you tend to spend this on yourself.But if you are sharing both monthly income and expenses with your family or partner, this will entail a more willful move on everyone's part, in order to save a little something for rainy days ahead.One way of drastically culling your expenses is to set aside those credit cards.You can keep them but use them only for emergency purposes.Your next step is to actually define what your emergency purposes really are.Your car breaks down. will this be considered an emergency or can you ride the bus until next payday? Your child comes down with chicken pox and needs meds. definitely an emergency.Your pipes burst and water is gushing all over the house. yes, that can be considered an emergency - unless of course, you spend the next few days underwater.Define the limits of what can be considered as emergency expenses, and stick to it, in the most unforgiving manner possible.Buying a pair of shoes (costing several hundred dollars) on credit for a hot date may seem like an emergency situation right now.Sure, you can argue that this is an investment in your future.But within the next few days, those dollar signs will have to be paid point by point.(Just imagine, what if the date wasn't really worth it?).Also, you could try to find your own creative alternatives to saving.Setting aside your credit card is one way - if that works, and if you do have credit cards to your name.If you (and your family members) don't, it might be a wiser option not to acquire any for the moment.See how things will work out in your daily routine.If you prefer online banking, there are options in many banks now that allow you to transfer a certain percentage of your monthly salary to a separate account.If you are less tech-savvy, but can actually save ready cash by setting aside a few dollars in your piggybank, then do so.We know of certain people who prefer tucking a few 20's in the old books they have every pay day - and placing the books way, way up high on the shelves.Just try to see whatever works for you, and stick to it like crazy.
Sunday, September 23, 2012
Creating a Personal Budget Set-Up That is Easy to Maintain
Payday is two weeks away and you are already feeling the pinch.Bills are piling and piling and piling.The savings you have in your bank is just enough to keep the account open, if you have any savings to speak of at all.Next thing you know, you've got to take your car to the mechanic; or your kid takes an emergency trip to the hospital; or the pipes in your house bursts and the plumber is ticking off the numbers in your head.Money - if only they grow on trees.Creating and balancing your personal finance may become an easier task, just as long as you create a set-up that works best for you.Although there are numerous how-to books out there about budgeting, everything boils down to your own personal needs, how much cash is flowing into your pockets, and what your short term and long term plans are for your money.Your budget is one of the main indications of how much cash you could actually spend.Unfortunately for many of us, we tend to spend more than we earn.So the objective for now is to live within our budget - which by the way, is easier said than done.This is actually easier to do if you have your own cash flow, and that you tend to spend this on yourself.But if you are sharing both monthly income and expenses with your family or partner, this will entail a more willful move on everyone's part, in order to save a little something for rainy days ahead.One way of drastically culling your expenses is to set aside those credit cards.You can keep them but use them only for emergency purposes.Your next step is to actually define what your emergency purposes really are.Your car breaks down. will this be considered an emergency or can you ride the bus until next payday? Your child comes down with chicken pox and needs meds. definitely an emergency.Your pipes burst and water is gushing all over the house. yes, that can be considered an emergency - unless of course, you spend the next few days underwater.Define the limits of what can be considered as emergency expenses, and stick to it, in the most unforgiving manner possible.Buying a pair of shoes (costing several hundred dollars) on credit for a hot date may seem like an emergency situation right now.Sure, you can argue that this is an investment in your future.But within the next few days, those dollar signs will have to be paid point by point.(Just imagine, what if the date wasn't really worth it?).Also, you could try to find your own creative alternatives to saving.Setting aside your credit card is one way - if that works, and if you do have credit cards to your name.If you (and your family members) don't, it might be a wiser option not to acquire any for the moment.See how things will work out in your daily routine.If you prefer online banking, there are options in many banks now that allow you to transfer a certain percentage of your monthly salary to a separate account.If you are less tech-savvy, but can actually save ready cash by setting aside a few dollars in your piggybank, then do so.We know of certain people who prefer tucking a few 20's in the old books they have every pay day - and placing the books way, way up high on the shelves.Just try to see whatever works for you, and stick to it like crazy.
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