D' Finance Bench

The Right Place To Sit At For Financial Advises

Avoid Spending Pitfalls

With all the advantages that are evident from personal budgeting, it is no wonder that more and more people are relying on them to reduce debts and increase their savings. However, all ‘budgeters’ need to be careful to avoid some common pitfalls that appear often. 
Credit cards may seem like small pieces of plastic, however they can cause a great deal of trouble for the owners. It is common for people to make unwise purchases, which they would have avoided otherwise, because they had the credit card in their wallet. The best solution for many people is simply to get rid of credit cards and begin paying only by cash, check, or debit cards. You may want to keep one card handy for emergencies, but it is probably best to keep it out of reach, and far away from your wallet. Continue reading

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September 25, 2012 Posted by | Budgeting, Money Management | , , , , , , , , | 4 Comments

Cut Back on Spending

At first it may seem difficult to limit spending and stick to a budget, however there are a few practical changes that you can make everyday that will cut your spending more than you expect. Continue reading

September 25, 2012 Posted by | Budgeting | , , , , , , | 7 Comments

Easy Household Budgeting Strategies

Most people live paycheck to paycheck, and spend what they want whenever they want. But if you keep up that pattern long enough, you’ll soon discover that the money runs out before you’ve paid all the bills, and there is never any left over for special purchases or holidays. To get control of your household spending and start saving you will need to set up a household budget.

The thought of having to stick to a budget might make you cringe. It sounds restrictive and boring. But if you are serious about creating wealth, a budget can actually give you freedom. You will have control over your finances, know where your money is going, and have a plan to reach your financial goals. Not spending on a few things that you can do without right now means you will be able to spend on larger, more important purchases in the future.

 

Here are some easy household budgeting strategies you can use to get started.

  • Find out how much you earn

The way you’re paid can determine how you budget your money each month. If you’re paid on a weekly basis, you can calculate your budget based on four paychecks a month. That means you’ll have four extra checks throughout the year to help with extra expenses. If you’re paid bi-weekly, you can calculate your budget based on two paychecks a month, and have two extra checks throughout the year. If you’re paid monthly, calculate your budget based on the monthly amount. You won’t have extra checks throughout the year, so you’ll need to be careful in budgeting for the extras. For those who aren’t paid regularly, figure out your annual income and divide it by 12 to determine your monthly income.

  • Track your expenses.

Your fixed expenses will be easy to figure out. These are the items that stay the same from month to month, such as your mortgage, car payment, and the like. Your other expenses can be trickier to calculate. To find out how much you really spend in a month, carry a notebook with you and write down everything you spend for the next 30 days. This will tell you how much money you’re spending, and where it is all going.

  • Figure out the difference.

Now, find out the difference between what you spend and what you earn each month. If you have a surplus, a portion of that should be budgeted for investments or savings. If you have a shortage, you have one of two choices to solve your budget woes: lower your expenses or increase your income. You may even want to do both.

  • Lower your expenses.

Lowering your expenses is the most obvious way to solve a discrepancy between your income and your spending. Simple changes made over time, such as renting a video instead of going to the movie theatre, can add up to big dollars in your bank account. Others may be lifestyle changes, such as giving up one car and taking public transportation instead.

Taking control of your finances by setting up a household budget is an important first step to creating wealth. As you begin to make wise decisions about where your money goes, over time you will find opportunities to spend less and have more money to invest.

September 23, 2012 Posted by | Budgeting | , , , , , , , , , | 3 Comments

Gasping For The Debt Free Life

debt reductionA debt is basically the quantity of money that one owed to a financial institution (e.g bank or credit company).  This is presented in form of different repayment terms like bond, loan or mortgages. Most of the time, you will be required to pay a certain interest rate based on the amount that you owed. The whole amount must be paid according to the term that both the debtor and lender agreed. There would be a required penalty if you can not re-pay your debt on the set time.

One particular cause why people tend to dive into debt pit is due to income reduction. The prices of the things needed for our daily lives increase, yet, it is comically sarcastic how wages would usually go down due to some economy crap. That is an unfair fact, but what can we do? That’s why people would rather be rescued by loaning money. The way you managed your financial matters also has a huge impact on your debt issues. If you happened to have unorganized way of managing your money, you would likely end up in cycle of endless debt. There is gambling too, a moronic way of obtaining money. or it would be the other way around where you’ll become instantly “a thousand dollar richer”.  Some of us would rather take the short cut of “freeing” theirselves from money issues by means of spending money for the “chance” of doubling it, that is, if they are lucky.  During medical emergency times in the family, and the affected happened to have no medical insurance or money at all, then the only option is by borrowing money. This is when debt starts to arise. The patient can’t work and he has debt from his hospitalization expenses, you can figure out the rest of the scenario. Continue reading

August 28, 2012 Posted by | Debt | , , , , , , , , , , | 4 Comments