So this is a quick and easy budgeting tip if you haven't started. Take your paycheck and split it into envelopes. You can use real cash or since that's not super safe having tons of cash lying around write the amounts down on the envelopes. So for instance:
Envelope 1: Mortgage $X
Envelope 2: Groceries $X
Envelope 3: Fun Stuff $X
You get the drift. So you set aside from each paycheck the money you need for all your expenses, savings and then fun extras. You can only spend the designated amount in that envelope so when it's gone you're done!
Showing posts with label Money. Show all posts
Showing posts with label Money. Show all posts
Wednesday, January 20, 2010
Sunday, January 17, 2010
Week 3 of the 52 Week Challenge
So how do we feel? Were you itching for Saturday to be over so you can go on a spending spree? I did cave and spend some money yesterday. I went to dinner with friends and bought a pair of shoes (on massive sale). But I said make room for your must haves. So let's stick with this money theme and for week 3 set a budget. You know what you're spending and saving (if you balanced your checkbook in week one) and you know how it feels to cut back (if you didn't spend in week two).
So make a budget that works for you. Mine is more in my head, a loose number. I did take minute and write down what I make, minus my mortgage and other bills, minus my current savings deduction and come up with a fun money category. Now the fun money for me should cover anything else - unforeseen bills, fun extras, a few extra dollars to savings, etc.
I've seen a friend's budget that was all pie charts and detailed spending analysis. It would spend me into shock just trying to make that in Excel and I know I wouldn't be able to keep it up.
But you need to find what works for you.
Start with how much you make and minus your monthly bills. Now, hopefully you have some leftover. Ideally, from that you should budget an amount to save. The rest is yours to do what you will. I'll try to keep up the savings tips this week or any helpful budget tips I find. Good luck!
So make a budget that works for you. Mine is more in my head, a loose number. I did take minute and write down what I make, minus my mortgage and other bills, minus my current savings deduction and come up with a fun money category. Now the fun money for me should cover anything else - unforeseen bills, fun extras, a few extra dollars to savings, etc.
I've seen a friend's budget that was all pie charts and detailed spending analysis. It would spend me into shock just trying to make that in Excel and I know I wouldn't be able to keep it up.
But you need to find what works for you.
Start with how much you make and minus your monthly bills. Now, hopefully you have some leftover. Ideally, from that you should budget an amount to save. The rest is yours to do what you will. I'll try to keep up the savings tips this week or any helpful budget tips I find. Good luck!
Saturday, January 16, 2010
Saving Tip 6
Take a minute and do some research. Surprise, surprise but banks are in it to make a profit so don't think anyone is really trying to help you earn more money. That's up to you. So do some research. How much are you paying on loans and how much are you earning on savings? Typically the online banks (like ING Direct or HSBC) and Credit Unions (a lot have gone community so as long as you live or work in an area you can join) will earn you the best savings rates.
Transfer your money to places that have the higher rates and don't be afraid to move your money around if one place suddenly drops their savings rates on you. You have to make your money work for you!
Look at what you're paying on loans - credit cards, car loans, mortgages. If you're paying more on your loans than you're earning on your savings (which is typically the case right now) think about saving less (I know it's saving week but still) and putting more money towards your debt. You'll pay off the debt quicker and have more money in the end to save.
A helpful hint would be look for a low interest rate credit card with no balance transfer fees and transfer balances from your higher rate card to the new lower rate card. Just be careful, a lot of cards that sound like a good deal (0% for the first year, etc) really aren't when you read the fine print. Find one that really is a good deal - a low interest rate now and later.
And the biggest thing - stop taking on new debt. I know easier said than done but this week is supposed to be making you think about what you really need. I may want a new car but my old car is perfectly fine and I don't want to have to pay a car loan off every month. I may want a new dress from the mall but if I have to charge it and can't pay it off at the end of the month it isn't worth it.
Now, I'm not a financial planner and I don't have all the answers - my tips are supposed to be more common sense help. So do what you will with them. Remember, we have until Sunday to only spend on necessities - how are you doing so far? Has it been easier or harder than you thought?
Honestly, for me it hasn't been as bad as I thought. It actually curbed my spending at CVS (when I went for the birthday cards). I was eyeing a pair of tights and some new chapstick. But I got chapstick for Christmas and there are probably six pairs of tights in my dresser that are perfectly fine so I put them back and only got what I needed. I actually felt proud of myself afterwards. Some other things are harder to turn down - a work friend asked me to lunch the other day. I could have said no and read my book and eaten my Easy Mac but I caved and went to Arby's. A $10 salad later, a nice walk back to work and a good chat and it made my Friday a little easier. Remember, you can't say no all the time - just be more careful with what you're spending. Happy Saturday!
Transfer your money to places that have the higher rates and don't be afraid to move your money around if one place suddenly drops their savings rates on you. You have to make your money work for you!
Look at what you're paying on loans - credit cards, car loans, mortgages. If you're paying more on your loans than you're earning on your savings (which is typically the case right now) think about saving less (I know it's saving week but still) and putting more money towards your debt. You'll pay off the debt quicker and have more money in the end to save.
A helpful hint would be look for a low interest rate credit card with no balance transfer fees and transfer balances from your higher rate card to the new lower rate card. Just be careful, a lot of cards that sound like a good deal (0% for the first year, etc) really aren't when you read the fine print. Find one that really is a good deal - a low interest rate now and later.
And the biggest thing - stop taking on new debt. I know easier said than done but this week is supposed to be making you think about what you really need. I may want a new car but my old car is perfectly fine and I don't want to have to pay a car loan off every month. I may want a new dress from the mall but if I have to charge it and can't pay it off at the end of the month it isn't worth it.
Now, I'm not a financial planner and I don't have all the answers - my tips are supposed to be more common sense help. So do what you will with them. Remember, we have until Sunday to only spend on necessities - how are you doing so far? Has it been easier or harder than you thought?
Honestly, for me it hasn't been as bad as I thought. It actually curbed my spending at CVS (when I went for the birthday cards). I was eyeing a pair of tights and some new chapstick. But I got chapstick for Christmas and there are probably six pairs of tights in my dresser that are perfectly fine so I put them back and only got what I needed. I actually felt proud of myself afterwards. Some other things are harder to turn down - a work friend asked me to lunch the other day. I could have said no and read my book and eaten my Easy Mac but I caved and went to Arby's. A $10 salad later, a nice walk back to work and a good chat and it made my Friday a little easier. Remember, you can't say no all the time - just be more careful with what you're spending. Happy Saturday!
Monday, January 11, 2010
Saving Tip 1
We hear this all the time but eat in more! I'm groaning just writing this. Really? I don't want to eat a homemade salad when the $10 one from the work cafeteria has fancy things like eggs and cheese on it and mine is just a bag of lettuce. Or my favorite excuse - I'm too tired to cook but not too tired to get back in my car and head to the local Chinese restaurant.
Think of it this way. If you eat out three meals a day, not only is that a lot of fattening calories (lets face it restaurant food is never good for you), but you're also easily blowing through $50 to $100 each day!
Now I'm not saying go cold turkey and never eat out again. Your friends will call you a hermit. You might start eating like a five year old - cereal and mac and cheese - because its easy. I'm saying be mindful of what you're spending and maybe cut back.
If you're typically eating out every day for lunch. Start by bringing your lunch two days a week.
If you meet friends for dinner every night after work, start by hosting a cooking party every Friday and rotate houses. Come up with a fun theme and have everyone bring an item. You'll try new foods and it'll be better for you and your wallet!
Happy Saving!
Think of it this way. If you eat out three meals a day, not only is that a lot of fattening calories (lets face it restaurant food is never good for you), but you're also easily blowing through $50 to $100 each day!
Now I'm not saying go cold turkey and never eat out again. Your friends will call you a hermit. You might start eating like a five year old - cereal and mac and cheese - because its easy. I'm saying be mindful of what you're spending and maybe cut back.
If you're typically eating out every day for lunch. Start by bringing your lunch two days a week.
If you meet friends for dinner every night after work, start by hosting a cooking party every Friday and rotate houses. Come up with a fun theme and have everyone bring an item. You'll try new foods and it'll be better for you and your wallet!
Happy Saving!
Week 1 Recap and Week 2 of the 52 Week Resolution Challenge
So I'm a day late but I wasn't feeling great Sunday and still don't feel great today so I'm cutting myself some slack.
Let's recap week 1 shall we... we were supposed to go through our receipts and check our statements and balance our checkbooks. Raise your hand if you did it. Can I get partial credit? I did balance my checkbooks. I didn't go through my pile of receipts. I'm trusting that since I look at my statement and don't see anything odd that the receipts are a waste of time.
So lets start week 2. This week I'm challenging all of you to stop spending money. Yikes! That's hard. We're in a recession because no one wants to spend money. Well, I'm not saying you can't buy necessities and I'll even be nice enough to say you can decide what counts as a necessity. My rule is not everything can be a necessity (do you really need that Starbucks before work? Do you have to go to happy hour?).
The concession is, I am going to make you write down everything you spend money on this week. I mean every little thing. That pack of gum from the vending machine, the $5 you loan a co-worker. I want it all written down and tracked. You don't have to share unless you want to.
The point of this activity is to make you more aware of where your money is going. You may be surprised that you spend $25 a week on coffee. Or that you happen to drop by The Limited and blow through $50 every time you have a bad day. At the end of the week we'll discuss what happened. Feel free to comment along the way.
Today I have spent $0. I'll try to give you tips on ways to save.
Let's recap week 1 shall we... we were supposed to go through our receipts and check our statements and balance our checkbooks. Raise your hand if you did it. Can I get partial credit? I did balance my checkbooks. I didn't go through my pile of receipts. I'm trusting that since I look at my statement and don't see anything odd that the receipts are a waste of time.
So lets start week 2. This week I'm challenging all of you to stop spending money. Yikes! That's hard. We're in a recession because no one wants to spend money. Well, I'm not saying you can't buy necessities and I'll even be nice enough to say you can decide what counts as a necessity. My rule is not everything can be a necessity (do you really need that Starbucks before work? Do you have to go to happy hour?).
The concession is, I am going to make you write down everything you spend money on this week. I mean every little thing. That pack of gum from the vending machine, the $5 you loan a co-worker. I want it all written down and tracked. You don't have to share unless you want to.
The point of this activity is to make you more aware of where your money is going. You may be surprised that you spend $25 a week on coffee. Or that you happen to drop by The Limited and blow through $50 every time you have a bad day. At the end of the week we'll discuss what happened. Feel free to comment along the way.
Today I have spent $0. I'll try to give you tips on ways to save.
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