Part 3 (1/2)

13. Know what you spend Establis.h.i.+ng a budget, and periodically entering all of your purchases into money managing software, should take the guesswork out of your finances. At the beginning, minor changes will most likely need to be made to your budget. Once you have a finalized budget, one person should be responsible for maintaining the budget and tracking finances. I sit down with my wife on a monthly basis and go over our financial results. If we are close to exceeding a budget line item during the month, I will tell my wife and we adjust our spending accordingly.

14. Cut down on interest With bills happening throughout the month, people can find themselves poor one part of the month, and rich during the other. My bank offers free online bill pay, so I take all of my bills, 37 and divide it by 4. I then pay weekly, so I always have the same spending cash each pay check. It also cuts down on the interest that accrues.

Sometimes, just listening to the opinions of others opens up our minds to other possibilities we have not thought of, read about or seen in any published material, industry-related text-books or budget specialist tip sheets and 'how to' layouts. All the technical information, procedural and budgeting principles are extremely important if you want to ensure lasting and sustainable change. It is also undeniably true, that in this day and age, collaborating and connecting with others is how we learn.

Utilizing online sources, electronic publications and shared experiences, solving common problems together is definitely the wave of the future. Some providers online offer 'live'

customer consultations.

These are mainly for financial issues and mostly your first hour is free. If you are in a real crunch, crises and need a budget fast, but do not have the time to even read through the Coles-notes version, then maybe the internet has the answer for you. Always remember that you are the best-informed and decision maker in this process.

Taking control of your finances should challenge, invigorate and excite you. You are taking charge of your life, getting your ducks in a row so to speak and traveling down the road of fiscal responsibility and re-connection.

It is mostly a money crunch or crisis situation that make us lean towards budgeting more.

Handling a money crisis well and realizing that family budgeting is but one pieces of that puzzle, might be helpful. The expectations, problems faced, context and depth of the crisis, puzzle, might be helpful. The expectations, problems faced, context and depth of the crisis, is as important as the steps, procedures, techniques, tools and budget worksheets you end is as important as the steps, procedures, techniques, tools and budget worksheets you end up using. up using.

- Admitting that there is a problem is normally considered a good first step. Asking for help is a close second. Money-matters makes us do strange things. You are probably not 38 the only one facing this situation. Therefore, take heart there is help out there. Even before getting to the how to steps for your own budget, work on your state of mind, immediate needs, concerns, dues and crisis. Consult a professional financial planner, who will a.s.sist you, in all likelihood, through and financial a.n.a.lysis of your situation, a.s.sembling facts and information, coming up with solutions, suggestions and alternatives you probably are not thinking of right now. Even when not under pressure or in crisis, when setting up a family budget, gather your thought, emotions, data, receipts, statements, input from others, discuss, consult, a.s.semble, synergize and prepare to succeed. Get the most appropriate, accurate information you possibly can before setting up any expense categories or filling out worksheets. Get and extra set of eyes to look it over, you will not regret it.

- Sober, even-keel, un-emotional, rational, clear-minded, level-headed and ready to take on any challenge include setting up a personal and family budget, income, expense statements, a.s.set-liability summaries, expense categories, line items, amounts, estimates and more. Committed to succeed, with a positive att.i.tude and financial resourcefulness will serve you well in any situation, no matter what the money crunch or reason for your budgeting need may possibly be.

- Take responsibility and have realistic expectations.

- Take some risks when required. Be pro-active and explore your options. Do not hesitate to tackle controversial topics or expenditures, even if it can lead to conflict and disagreement. Couples and finances have always caused some difficulty, so it is all normal. Stabilize your situation, salvage what you can and move on, focus forward.

Family budgeting has the past, present, future continuum all covered.

- Someone suggested that there are eleven steps in any new money management endeavor you undertake where personal interest and stake is high: Step One Change Your Expectations and be Realistic 39.Step Two Tell Yourself the Truth Face the Music Step Three Decide How to Pay for Necessities Stop-gap Solutions Step Four Identify Your a.s.sets all of them! They are there, we just need to go find them Step Five Discover How Much You Cost this is how much you spend and your contribution to situation and circ.u.mstance Step Six Calculate What You Can Afford to Cost cost cutting and balancing your budget Step Seven Call Your Creditors dealing with debt Step Eight Quit Paying Late Fees work with professionals Step Nine Create a Family Budget Step Ten Do Not Ignore the Following: IRS, Parking tickets, a.s.sociation Fees, Car payment, Immigration and other government affiliates that need to be pulled into your situation to a.s.sist you as best they can Step Eleven Manage Your Money Every Day It is no surprise then, to even find the ever-popular 'budgeting' concept among these listed must do's to re-collect, re-orient and return to fiscal freedom and avert further money-related crises! must do's to re-collect, re-orient and return to fiscal freedom and avert further money-related crises!

40.HOW SHOULD A FAMILY BUDGET BE USED.

This question immediately suggests that it should be part of the whole family budgeting process.

It is much part of the learning around setting it up, considering its usefulness, function and purpose.

Creating or setting up the budget is one thing. Sticking to it, effectively implementing, sustaining and if actual fact, in essence 'using' it is the ultimate goal and achievement. That is worth celebrating. Families have different ways again to use or refer to their family budgets.

For some it will be no more than a general guideline. For others it would const.i.tute an absolute rule not to be bent or broken. Others still will use the family budget as a strategic planning tool to protect the interests of his/her family and plan for a full and happy life, setting a small amount aside for the future, invested smartly and securely, with confidence and pride.

The very day the family budget actually a.s.sists you in reducing your spending and making informed smart financial decisions that is the day you do not sit back and relax, but throw all your energy back in making it even better. This is an on-going, continuous improvement exercise, experiment and undertaking of your own making, design and creation!

The family budget can: - a.s.sist you in handling unforeseen increases in costs and unbudgeted expenses a.s.sist you in handling unforeseen increases in costs and unbudgeted expenses It is very common to get discouraged when on the family budgeting path. The minute you feel you have taken strides forward, something will happen, a setback, unexpected upset or expense, breakdown, maintenance or replacement or car, appliance, major purchase or repair and many other setbacks will occur. It is very common to get discouraged when on the family budgeting path. The minute you feel you have taken strides forward, something will happen, a setback, unexpected upset or expense, breakdown, maintenance or replacement or car, appliance, major purchase or repair and many other setbacks will occur.

In a sense it makes families more robust, responsive and adaptable. Tracking your finances makes you aware of patterns and business cycles, cost and many other factors that affect hearth and home financial life and health. Rent increases, more expensive cigarettes or tax increases, higher gas or energy prices or increased mileage to and from work are but a few examples of these events and issues that might come up.

41.When faced with these challenges, problems or complexities, having your fingers on the pulse of your available resources, discretionary monies, savings, line of credit, rates, banking fees and more, will all help you make the right informed decision that is best for your family, at that time and act accordingly with diligence and confidence. You are in control of your financial situation and not the other way around. It enlightens and empowers you to do more with less!

Unpredictable pricing and fluctuating expense are not easy to reduce in any budget. Having this variation handy, spread over a period of time, can help you plan better and antic.i.p.ate sudden spikes or higher expenditure during certain months of the year.

For example, the telephone bill is higher when the teenagers are home for the summer.

Emergency, contingency and improvements are not priorities for most of us when we receive our paycheck. To ensure a steady stream of income into these categories make ”saving for a rainy day” come to life and have some real impact and meaning in our financial planning.

Cutting non-essentials first is a good strategy. Alcohol, long distance phone calls, gifts, gardening and landscaping services, decorating costs, pet care needs, recreation and lottery tickets can all be good money-saving categories. The more line items you can include, in your cost reduction, the smaller the dollar-amount impact in each.

It should come as not surprise that by just cutting a little in each of these categories, families can easily save upwards of $240 per year without too much noticeable difference in their lifestyle or any major disruptions or sacrifices. If is less than1 % of your total spending, it should not really cause pain, grief or reason for worry.

Family budgets can also provide hints on how to save on non-essentials: Buying more or less of a product or service, comparison shopping for the lowers possible price, bulk and discount, sale, buying a lower-priced or no-name brand. Eliminating some gift giving (Christmas, birthdays, friends and family) is a way to save money.

Elimination of waste is another clever way to save money that is often overlooked, BUT not in the family budget. Thrown out food because too much was purchased or it spoils because at time of purchase it was not as fresh as it could have been. Spur-of-the-moment clothing purchases, too trendy, uncomfortable and not the right size perhaps?

42.Making an active effort to partic.i.p.ate in the family budgeting process will carry its own rewards as well. Self-discipline and curbing your own spending will soon become second nature almost.

- Enable families to make large spending reductions in the right places at the Enable families to make large spending reductions in the right places at the appropriate times appropriate times Anything from a small rent increase of a couple of dollars to an all-out job-loss can impact home life and finances, and not in a positive sense. The family budget offers you the opportunity to prepare somewhat for this, whether pro-active or responsive action follow. Flexibility and adaptability are bonuses with family budgeting.

It will spell out the reality, damage, impact, what needs to be done at the barest of minimums to get by and offer stop-gap solutions, practical and accessible, right away. It is not to say that it will have you not worrying about it! All of us will be concerned if this is our situation, but it will leave you more prepared to deals with the challenges head on and right away as opposed to wasting time wondering what to do and how bad it is.

- Protect against income reduction and inevitabilities Protect against income reduction and inevitabilities In the case of job loss mentioned above there are also immediate realities to consider. Financial implications are huge for family life and the pressure is on. Family budgets and informed budgeted will tell you that this tool and time spent will be worth every penny if this were ever to happen to them. In the case of job loss mentioned above there are also immediate realities to consider. Financial implications are huge for family life and the pressure is on. Family budgets and informed budgeted will tell you that this tool and time spent will be worth every penny if this were ever to happen to them.

Because of the heightened awareness and familiarity with the context and content of the financial, spending and cost cutting plans and strategies, goals and savings, the family budget process and product now offer avenues to solutions rather than barriers of debt and no point of return.

Tackling normal spending categories first, reduced transportation costs, packing a lunch as opposed to having it in the cafeteria every day. Suspend all discretionary funding, move money 43 in your accounts around to ensure liquid a.s.sets to cover basic expenses. Luxury items and recreation, sports and other leisure activities will be another category to find some budget dollars.

Maintenance and repair costs might be suspended or delayed, cost-cutting is never pleasant but the budgeting process makes it easier to know where the cus.h.i.+ons and 'fat' is that can be trimmed or eaten away at, without risking heart and limb!

Other positive job-changes like promotions and relocations could also have a lot of impact.

Taxes, relocation fees, buy-and-sell of homes, settling allowances, insurance, storage etc. they all add up. The family budget will help you a.s.sess your situation more clearly, leading to better decision-making and informed empowered choice.

Any discussion on 'How to set up a family budget', will be incomplete without a section dealing with debt and debt consolidation dealing with debt and debt consolidation Normally we use credit cards for a variety of good reasons, like convenience, business expenses, online commerce, instant accountability, unexpected bargains or expenses, medical and or other emergencies.

There are however, also very definite situations where plunging yourself deeper into debt is not a good idea at all: - An expensive item you know you cannot afford (indulgence shopping). If you do not have the cash funds to purchase it, charging it is not going to make it easier for you to pay it! By putting it on plastic you just racked up the price and interest charges. Your budget will not thank you later for this one. Bad decisions often lead us down the wrong path.

You will be left facing paying for this choice for a couple of years down the road still.

- Tele shopping or infomercials for gadgets and widgets.

- When grocery shopping, pay cash rather than plastic, or you will most likely overspend.

- Meals, drinks, nights out and other entertainment charges are all like the miscellaneous category in a budget. The balance and dues will just keep on piling up, if it is not tracked and monitored closely - If you are truly going to be budget-minded and money conscious while trying to get out of debt, consolidating or in debt-repair avoid the plastic!

44.- Check the interest rates on your card, consolidate accounts, go through the exercise of balance transfers et al. and seek the advise of a professional to a.s.sist and advise you, on how best to approach credit of any sort while on the mend to financial freedom, reputation, repair and recovery.

- For family budgeting purposes, credit cards are for EMERGENCIES ONLY and should not be used to pay for bills or luxury items. Carrying a high balance, missing a payment, paying less than the minimum or other faux pas, might negatively affect your credit rating and undermine all the other good work you were doing in your budgeting process.

- Watch out for steeper late charges, higher rates, annual service fees, interest rates and charges, and cash advances.

- Using your credit card at an ATM for a cash advance can sometimes not be convenient, as the rate and cash advance fees can total as much as 24% or higher. This is even more than loan sharks or other payday like loan providers.

- Do not use credit cards for any of the following reasons: unbudgeted expenses you cannot pay for; having no cash savings to help you with unexpected expenses, consuming more than you can afford or impulse shopping.