Helen Writings
Why should I make a budget? And, why should you invest?
By: Mega Man (www.short-articles.net)
You say you know where your money goes and you do not need it all spelled stick with it? End to give you a challenge. Keep track of every penny you spend for a month and I mean every penny. You’ll be shocked at what costs Itty-Bitty completed. Take the total you spent only one of the useless things than a month, multiply it by 12 months a year and multiply the result by 5 to represent 5 years.
So you could save and make interest only for five years. This, my friends, is precisely because we are all budget. If we can control the small expenses that really the general structure of our lives, we can enjoy economic success.
The little things really count. Cutting what you spend on lunch from five dollars per day for three dollars a day, every working day of the week from five days of work saves $ 10 a week … $ 40 per month … $ 480 per year … U.S. $ 2,400 in five years…. plus interest.
See what I mean … Is it really the small things and eat every day for lunch and that was the only place to save money on their daily lives without doing without one thing you need. There are many parts to cut costs if you get them.
Set some specific long term and short-term goals. There are no wrong answers here. While it is important to you, it’s important period. If you want to be able to make a payment on a house, starting a college fund for your children, buy a sports car, take a vacation to Aruba … something … then it is your goal and your reason to get a grip on your financial situation today.
Now! Why should you invest?
The investment has become increasingly important in recent years, as the future of Social security benefits is unknown. People want their future and know that if they are related to social security benefits and, in some cases, pension plans, are a rude awakening when they no longer have the ability to earn stable income. The investment is the answer to an unknown future.
You can save money have been in a low interest savings account over the years. Now I want to see push money at a faster pace. Perhaps you’ve inherited any money or made other contingencies, and you need a way to grow that money. Once again, investment is the answer. The investment is also a way to achieve the things you want, as a new home, a college education for their children, or cost as toys. Of course, your financial goals will determine what type of investment you make.
If you want or need to do a lot of money quickly, you’d be more interested in investing a greater risk, giving a better return in a short period of time. If you are storing something in the distant future, such as retirement, you want to make safer investments that grow over a period of time longer.
The overall objective of the investment is to create prosperity and security over time. It is important to remember that you will not always be able to earn an income … you will eventually retire. You can not count on the social security system to do what you expect it to do. As we have seen with Enron, you can not necessarily depend on the pension scheme of your business, whatever. Again, investment is essential to ensure your financial future, but you need to make smart investments!
Ok! Now start reading short articles on investment to get more ideas. Also you can go to short articles to read articles on many other topics. We have over one million articles and more than one thousand topics for you.
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Tags: investment
Posted in Budgeting · May 28th, 2010 · Comments (0)
If you can stick to a personal budget spreadsheet plan, you will be able to live below your means. One should have the assets to pay for liabilities and and at the same time have some more left over for the coming days and for emergencies. However, if your debts are too high for your money, staying with your budget may not be easy anymore. Now, if you are really determined, you know that it is not impossible.
Making an strong effort is very crucial to make sure you can balance the flow of your income with the debt that you are piling. You need to work on a plan you can follow, governing your expenditures, until such time that you are finished getting rid of debt. After that, you can resume to living a comfortable life.
You will first want to make an inventory of your standing expenses. Make a note of all of your fixed expenses. Those are the bills that you pay pretty much with the same amount every single month. Examples of these fixed expenses are your payment for rent or amortization, monthly subscriptions like telephone, cable, internet and cell phones, or car loans. Allot a section of your cash for these, and put on allowances for emergency events.
You also want to figure out your objectives and purposes for the monthly budget. Know about your reasons for creating such a budget. Put down all your objectives and their corresponding purposes. Think about all the things that you are aiming for beginning with the easiest and the short term goals. Think of the things that you have to accomplish for the next few months then continue with your more serious goals, or the long term ones.
You will also want to plan for your annual, semi-annual and quarterly expenses. Most of the times, these are membership fees, payment for magazine subscriptions or insurance premiums. Try to weigh these things and see which of those are really necessary and which ones you can survive without. Totally turn off those unnecessary expenses and just save the cash allotted for their payment.
List your unpredictable expenses. A person should also keep track of those expenses that tend to vary. The allowance for food, clothing, transportation and utility bills are some examples of these kind of expenses. Now, if you keep track of the sum of cash that you have spent for the whole day, your record may shock you. Perhaps you will see some of the things you have paid for that day are not vital. Then, next time you will remember to hold back from spending money on the same items since you do not really have to have these things. You may want to try switching your postpaid subscription for mobile phone to prepaid. To cut back your bills, try to conserve energy, electricity or water. Turn off whatever is not in use.
Finally, you have to stick with your budget. Try to follow your budget for three months. Those months will be like a trial period for you; during these months check on the cash that you are actually spending. Match up your expenses for all the months, and start to allot money for each item considering your income and the money that you might spare for the not so important items.
Living within your budget is not impossible, although it may be hard at in the beginning. And on the other hand, think of the benefits doing so will give after you manage to really stick to your budget for several months. Sticking to a budget and living within your means is never a fruitless or senseless endeavor. You’re actually securing your family’s and your own future.
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Tags: Money Management
Posted in Budgeting · April 18th, 2010 · Comments (0)