Everyone has a reason to plan a budget and a new year is a great way to review attempts at budgeting and to reiterate initiatives to plan and stick to it. Whether you have already tried budgeting in the past and have not been very successful does not matter. You will still be able to make new commitments and use new information acquired to become efficient at it. The factors below might help you in keeping up with your budget. Everyone needs to budget You might think that some people are not on a budget and are able to afford whatever they want, but that is probably not true. People appearing to be carefree spenders might in fact have planned for these indulgences or are perhaps going to be struggling in the future. Set your mind on the reason why you are budgeting Remaining motivated is the key to succeeding in any aspect of your life and this applies to budgeting as well. By keeping focus on the reason why you are budgeting, you will keep track on your expenses and ultimately achieve your goal. Keep your budget realistic Just because you have to save money does not necessary imply that you have to cut back on everything, including food and necessities. You would thus need to cater for these expenses and cut the extras. Focus on savings A savings account is important in this case. You might also consider having an account for each savings objectives. You might distribute your savings for short term goals such as buying something in the coming months, longer term goals such as your children’s education and an emergency...

Becoming new parents can be the cause of excitement among couples. However, there are many aspects that might cause some worries as well. The financial situation is one of these aspects. The tips below might help both of you overcome some of these worries together. Communicate with your partner Communication is key to making just about any decision and in resolving issues. Financial issues that would need to be discussed would revolve around changes in work schedules once the child is here and how you two will cope with it. Whether you would be able to live on only one income if one of you decides to stay at home to take care of the child. Respect Your Budget This is not just relevant to expecting parents but to everyone in general. However, while you might be getting away each month by living above your means, the arrival of a child will call for new expenses and you would have to cater for side savings in case of any medical emergency. Every new purchase revolving about the coming of the child would have to be thought. It is easy to fall prey to fancy purchases. Emergency Fund An emergency fund can come handy in many situations. This is especially the case for probable medical emergencies or if one of the partners is thinking about retiring from work to take care of the child. A decrease in monthly income might set aside some funds just in case. Funds might also come handy for a life or medical...

Oct 12, 2014

With the New Year coming up you might be reviewing your year and considering taking some resolutions regarding your finances for the years to come. Some of the ideas below might be beneficial to you. Learn Something New About Investing This Year Education is the key to being empowered. Learning more about investment will help you make better decisions and gain more insights on the market. You could consider starting an online class or browsing through finance sites and books. The idea is to invest time in learning about your investment. Making your own financial statement This would require some dedication, but the best way to figure out where you are spending your money and if you have a debt, where it comes from is to track your income and expenditure minutiously. You might put everything on a spreadsheet to help you get a clear picture. Spend Less And Save More This can be easier said than done but exercising self-control and giving much thought before spending on something could make you save a lot in the long run. Try to put thoughts into each and every items that you are buying, this would include a coffee and a donut. Being conscious about your every expenditure could help you realize where you could be saving. Invest In Self-Improvement Learning a new skill or investing in your look could help you progress in your career or give you the motivation to go for a career change. Either way, this could be beneficial to your finance if it helps you earn...

Sep 16, 2014

In June 2014, it was reported by The Economist that the student loan debt exceeded $1.2 trillion in the U.S. Every year thousands of students and even their parents opt to go for a student loan to afford college tuitions. Before you embark into loan application, you could consider the following: Research on the type of loan you are applying for. Applying for a loan is an important decision. Knowing about the characteristics of the loan you are applying for can help you in your decision. Often students can quality for several types of loan, whether they are Perkins loans, Stafford Loans or PLUS loans. Keep track of your credit score and have a copy of your credit report Your credit score can have an impact on the type and amount of loan you can be eligible for. It is important to know your score and to report any errors or potential corrections before going to your financial aid officer. If you have a poor credit score, you might consider loans that do not require this information. Know how much you would be earning after graduation Study the industry around you, especially in your location and field. If you are majoring in a field where the rate of unemployment is high, it might not be advisable to opt for a big student loan. Find out what could be the average salary of young graduates in your field and in your...

Sep 15, 2014

Drawing up a budget plan is the start of a good initiative at managing your income. However, the key is to be able to comply with the set plans. The tips listed below could help you to effectively manage your budget. Keep several bank accounts Having separate bank accounts whereby you will deposit portions of your income and which you would use for different types of expenses could be beneficial to you. For instance, you can have a monthly bills account and one for your personal expenses. This will prevent you from overspending on one aspect. Carry regular checks on your bank statements Regular checks on your bank statements will help you track whether transactions have been processed. You will also be able to have a look “on paper” or online about your spending habits. This might inspire you to cut back on certain expenditures. Another advantage of carrying out regular checks is that you might detect any fraudulent activity right away. Keep a log for your cash outflow If you tend to spend money in cash, you will not be able to keep track of your expenses through your bank statement. Instead you could focus on tracking your cash expenses for a few weeks to know about your habits and make changes accordingly. Perform regular budget reassessment Perform regular reassessment to determine whether your budget is adequate. Situations might change, you might have an income rise and reassessing your budget will give you the opportunity to attribute some of your income to personal expenses that you might have been neglecting...

Sep 14, 2014

Managing our personal finance can be a tricky feat, especially since we are not taught how to do so in our formal education. Often young adult have no notion in managing their finance when they start earning an income for the first time. The following tips can be useful to you if you wish to start managing your income. Exercising self control One of the most important factors in managing your income is exercising control over what you purchase. Adopt patience when it comes to buying certain extras. You can wait until you have saved up the amount so that you don’t get to pay interest. Keep track of how much you are purchasing with your credit card and make it a habit to pay off the balance at the end of the month to avoid paying extra interests. Keep track of your expenses Adopt a budget and try to know what are those extras that are making your expenses sore up. It might be a certain small expense that is done regularly that could at the end of the month come up to a relatively large figure. Go through your expenses on a daily basis to track that habit and to eliminate it. Importance of an emergency saving fund Start an emergency fund by “forcing yourself” into saving up a certain amount that could have been spent unwisely. The amount saved might be small in the short run but it can really come handy when you would actually need it and will in the long run be much more useful when the amount...