Most of you have probably already made (and perhaps even already broken ;-) your New Year's resolutions. But if not, here is a suggestion for 2011--make (or reevaluate) a budget and try hard to stick to it! What are your long-term goals? What do you feel is important enough to invest your hard earned time and money in?
My hubby and I recently sat down and reevaluated our budget. Saving as much as we can is always a priority, but we realized there are a few categories we feel it important to invest some money and a whole lot of time in. For us, we're focusing on: 1) our marriage, 2) our family, and 3) our health. As my dad likes to joke, "Date nights are a lot cheaper than marriage counseling!"
What is important to you? Plan your budget accordingly and then stick to it!!
Showing posts with label budget. Show all posts
Showing posts with label budget. Show all posts
Tuesday, January 18, 2011
Saturday, May 1, 2010
Feel Great--- Donate!
This might seem counterintuitive for a thrifty blog, but I believe it is so important to donate to charitable causes. There are so many benefits from donating:
- Most importantly, you get to help someone else.
- Helping others helps you feel good.
- It teaches you gratitude for what you have.
- It takes your mind off of yourself and your money...helping to realize that money isn't everything.
- It helps you spend less because you realize how good you have it.
- Surprisingly, there are financial benefits as well, and I'm not talking about tax deductibility. Arthur Brooks, a noted economist, shared a study he did about how giving makes you more profitable. And you don't need to be rich to enjoy the benefits of giving. To learn more, read his speech here.
Wednesday, March 10, 2010
Refinancing?
Do you own your home and are you considering refinancing? Be sure to calculate the money you will save each month with your new payment and compare it with the upfront closing costs. Then calculate how long it will take for you to "break even." For example, you may need to live in your home (and not move) for 2 more years before you will really begin saving money. If you know you won't be moving in that time period, then perhaps refinancing is for you.
*Hot Tip-- When you refinance, keep paying your previous mortgage amount. Call your mortgage company to ensure that the difference goes toward paying down your principal. You will save thousands of dollars in interest over the years!
Jamie
*Hot Tip-- When you refinance, keep paying your previous mortgage amount. Call your mortgage company to ensure that the difference goes toward paying down your principal. You will save thousands of dollars in interest over the years!
Jamie
Thursday, March 4, 2010
Budget Basics
Sit down with your spouse to compile your budget so you are both on the same page. Teamwork works!
1. Track all your expenses so you have a good idea of how much you spend. And I do mean ALL... you'd be surprised to see how those little purchases at Target's $1 spot add up!-) See where you can trim expenses.
2. Calculate your monthly income.
*HOT TIP* If you receive a paycheck every two weeks, calculate your monthly income based on two paychecks. This then gives you two "extra" paychecks a year that you can put in savings, pay down your mortgage, use for unexpected expenses, etc.
3. Plan your monthly savings amount and what will be your budgeted amount for different categories. Some categories we have besides the basics: family fun, date night, gift, charitable donations, medical, car maintenance, clothing, allowance, etc. If you have a bill that comes quarterly, include the monthly amount in your budget. For bills that fluctuate such as electric, estimate your yearly costs and divide by 12.
*HOT TIP* Give you and your spouse a small allowance each month. This is your "mad money" that you can spend however you want... as long as you stay within the budgeted amount. Save up your allowance for bigger purchases. An allowance category makes you feel not as restricted with a budget.
4. Track your expenses and stay within your budgeted amount. I use an Excel spreadsheet to keep track of my expenses. About once a week I sit down and enter my receipts and other expenses. This helps me keep a general idea of what amounts I have left in each category. If we are getting low in a category such as grocery, I try to make only necessary purchases...stretching it until the next month.
**If one of you keeps track of most of the finances (like I do), keep your spouse updated on the budget items that concern him/her (such as allowance or clothing).
5. Every few months reevaluate your budget. Make changes where necessary.
***Remember that, while a budget seems restrictive, it is really giving you freedom from the overwhelming stress of debt and by providing for your future!***
1. Track all your expenses so you have a good idea of how much you spend. And I do mean ALL... you'd be surprised to see how those little purchases at Target's $1 spot add up!-) See where you can trim expenses.
2. Calculate your monthly income.
*HOT TIP* If you receive a paycheck every two weeks, calculate your monthly income based on two paychecks. This then gives you two "extra" paychecks a year that you can put in savings, pay down your mortgage, use for unexpected expenses, etc.
3. Plan your monthly savings amount and what will be your budgeted amount for different categories. Some categories we have besides the basics: family fun, date night, gift, charitable donations, medical, car maintenance, clothing, allowance, etc. If you have a bill that comes quarterly, include the monthly amount in your budget. For bills that fluctuate such as electric, estimate your yearly costs and divide by 12.
*HOT TIP* Give you and your spouse a small allowance each month. This is your "mad money" that you can spend however you want... as long as you stay within the budgeted amount. Save up your allowance for bigger purchases. An allowance category makes you feel not as restricted with a budget.
4. Track your expenses and stay within your budgeted amount. I use an Excel spreadsheet to keep track of my expenses. About once a week I sit down and enter my receipts and other expenses. This helps me keep a general idea of what amounts I have left in each category. If we are getting low in a category such as grocery, I try to make only necessary purchases...stretching it until the next month.
**If one of you keeps track of most of the finances (like I do), keep your spouse updated on the budget items that concern him/her (such as allowance or clothing).
5. Every few months reevaluate your budget. Make changes where necessary.
***Remember that, while a budget seems restrictive, it is really giving you freedom from the overwhelming stress of debt and by providing for your future!***
Wednesday, March 3, 2010
Most Important Money Management Rules
Follow these two basic rules and you'll be a true "thrifteconomist":
- Spend less than you earn
- Make saving a priority
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