What is the best method to budget?
We all I guess need to know how to budget but, short of counting every penny and what it is spent on, I’ d like to know of a system or method that works well in getting control of personal finances.
How often do you need to reconcile the accounts?
I used to struggle making things balance when cheque books were in vogue – would be delighted with any positive ideas.
Many thanks
People who save to become wealthy do not budget. Budgeting does not address the key problem of either reducing your expenses or increasing your income. That is the way to have more money. Excellent categories to examine to reduce expenses are cars and insurance. On cars, you should buy only the most reliable used cars. Consumer reports states that the most reliable cars include Honda Civic, Toyota Corolla and Ford Escort, among others. Buy one of these well used at a price below the book value. You can find the book value on the Blue Book web site and find the peronal seller book value. Then take your time to find one underpriced and buy it. This will save you huge amounts of money long term. And you should shop insurance among a variety of companies for the lowest cost. You should also choose a deductible of $1,000 if you buy a car that has a loan. It is better to buy a well used car with cash and then you only pay for liability insurance. These ideas can save you thousands per year and do much more for saving than a budget. I own these cars myself and save thousands; most people don’t. Then invest your savings in a high paying money market fund or in a way that makes sense to you and let it snowball by compounding the interest.
The other side is to increase your income. This is way better than trying the tedious effort of budgeting your expenditures. Use your current skills to serve other and earn more money. Or learn new skills that are helpful to others. Can you deliver Pizza’s? That is one part time job that pays OK that anyone can do. Of course there are many other jobs which are far more fun and pay bettter but the idea is to increase your income. For example, I have been writing a book on health topic I have studied for years that I expect will be a big seller and will provide a lot more money for my family; you can find something like this that serves others.
If you cannot control your spending you need to deal with the core problem: a lack of discipline. Budgeting will not address this personal problem. You should start fasting to build discipline. Start by skipping one meal and work to fast one day. This will dramatically increase your ability to control yourself; most are way too easy on themselves and so not disciplined enough. I am an incredibly disciplined person from fasting and have both reduced my expenditures and increased my income.
As Zig Ziglar said: "If you are hard on yourself life will be incredibly easier on you."
I sit down and spend every paycheck on paper before I get it. My budget includes eating out and fun money after I pay the bills that are due that period and save a little. That eliminates wondering were the money went. If something changes, I have to decide what to cut to accommodate the new want/need.
References :
http://www.daveramsey.com/
KEEP YOUR MONEY IN YOUR POCKET AND DON’T OFFER ANYBODY SH*T!
References :
WORKS FOR ME
I have a few articles for you.
http://financialbasics.blogspot.com/2006/11/controlling-your-cash-flow.html
http://financialbasics.blogspot.com/2006/11/creating-budget.html
http://financialbasics.blogspot.com/2006/11/personal-budget-planning-tips.html
And in case you’re married : http://financialbasics.blogspot.com/2006/12/money-management-for-couples.html
Enjoy!
References :
http://financialbasics.blogspot.com
People who save to become wealthy do not budget. Budgeting does not address the key problem of either reducing your expenses or increasing your income. That is the way to have more money. Excellent categories to examine to reduce expenses are cars and insurance. On cars, you should buy only the most reliable used cars. Consumer reports states that the most reliable cars include Honda Civic, Toyota Corolla and Ford Escort, among others. Buy one of these well used at a price below the book value. You can find the book value on the Blue Book web site and find the peronal seller book value. Then take your time to find one underpriced and buy it. This will save you huge amounts of money long term. And you should shop insurance among a variety of companies for the lowest cost. You should also choose a deductible of $1,000 if you buy a car that has a loan. It is better to buy a well used car with cash and then you only pay for liability insurance. These ideas can save you thousands per year and do much more for saving than a budget. I own these cars myself and save thousands; most people don’t. Then invest your savings in a high paying money market fund or in a way that makes sense to you and let it snowball by compounding the interest.
The other side is to increase your income. This is way better than trying the tedious effort of budgeting your expenditures. Use your current skills to serve other and earn more money. Or learn new skills that are helpful to others. Can you deliver Pizza’s? That is one part time job that pays OK that anyone can do. Of course there are many other jobs which are far more fun and pay bettter but the idea is to increase your income. For example, I have been writing a book on health topic I have studied for years that I expect will be a big seller and will provide a lot more money for my family; you can find something like this that serves others.
If you cannot control your spending you need to deal with the core problem: a lack of discipline. Budgeting will not address this personal problem. You should start fasting to build discipline. Start by skipping one meal and work to fast one day. This will dramatically increase your ability to control yourself; most are way too easy on themselves and so not disciplined enough. I am an incredibly disciplined person from fasting and have both reduced my expenditures and increased my income.
As Zig Ziglar said: "If you are hard on yourself life will be incredibly easier on you."
References :