Personal Finance Information |
How to Draw a Personal Budget that Works
Many people spend their little income haphazardly without any planning and end up getting broke before month-end. They then borrow to make ends meet and end up with more problems that they fail to repay their debts promptly. However, this is not a prudent way of managing your personal financial affairs. Planning your personal financial affairs through prioritization of needs and budgeting income and expenses is the best way to achieving success in managing your financial affairs. It is important first to assess your financial needs in the short, medium and long term. What are your financial objectives? What do you want to achieve in the course of time? Do you have any targets? What is your short, medium and long term needs? List all of them down. Next categorize income and expenses on a monthly basis. Then prioritize expenses into most important, important and most important. You can use any other weighting or prioritization formula that works best for you. After this assess costs based on consumption per month. Put figures to the expense items. Then write down your income sources and the amount you earn per month from them. List the income on the left and the expenses on the right. Add up income amounts against expense amounts and find the difference to determine surplus or deficit. Once you have added and reduced items and figures several times and you are finally satisfied with the results, type your figures on a computer spreadsheet or word processor table and save it. You may also print it and file it for regular reference. To make it work successfully for you, you must vow to stick to the budget. Any deviation must be absolutely necessary and funds should be made available separately to meet the extra expenditure. Where no funds are available, some cutbacks or borrowing from other expense votes. You should ensure that you refund any funds borrowed from any expense votes to enable the votes to be expended. To be frank, most people would want to spend more and more irrespective of their financial ability. However, arbitrary unbudgeted spending may be hazardous to your financial health. About The Author Abdallah Khamis Abdallah is a freelance copywriter and ghostwriter. To learn more about how you and your business can benefit from viral and credibility marketing solutions visit his website at: http://www.qualitywritingsolutions.com, quantumpro@lycos.com
MORE RESOURCES: Unable to open RSS Feed $XMLfilename with error HTTP ERROR: 403, exiting |
RELATED ARTICLES
Your Dry Cleaner's Double Standard Women are charged more for dry cleaning services. Don't fume, find a better way. Identity Theft is a Major Problem: Whose Responsibility is It to Protect the Consumer? We have heard a lot about consumers' personal information getting into the hands of identity thieves. More and more people are taking steps to minimize their exposure to such theft by reducing information on personal checks, refusing to share social security numbers with just anyone who asks, being prudent in their use of credit cards, and shredding "junk" mail that might allow another person to pose as them. The World is Not Enough - Calling for a More Ethical Approach to Personal Finance At a time when the entire world's attention is focused on the problems of world debt, with the Live 8 concerts, the G8 summit in Scotland, the Make Poverty History Campaign (MPH) and the various anti-poverty marches, it seems that everyone wants the world's governments to behave more ethically towards the manner in which international finance is conducted. This is obviously a laudable attitude to take, and has gained immense momentum with such a groundswell of public opinion that even the UK Chancellor, Gordon Brown, has stated he is planning to participate in the Make Poverty History demonstration in Edinburgh during the G8 summit. Debt Management - More Ways to Save on Gas Consumption The price of gas continues to climb, and with continued uncertainty in the Middle East, they will probably continue to do so. In California and elsewhere, prices for some grades of gas have now reached the previously unthinkable three dollars a gallon. How You Feel Affects How You Shop & How Much You Spend Have you ever stopped to think about how your "mood" affects the way you shop, not to mention the amount you spend? Think about it.If you want to save a lot of money, avoid shopping whenever you are in one of these moods:DEPRESSED, UPSET, or ANGRYIt's very dangerous for your pocketbook to shop when you're either depressed, upset or angry. Saving Money - The Magic 20 Percent Saving money is not easy and is made more difficult if you have a short-term outlook regarding your personal finances. If, like many people, you are living from one pay cheque to the next, it is difficult to put some money aside for a rainy day or for a summer holiday. Personal Finance - Have Consumers Had a Belly Full of Personal Debt? For months, we were trigger-swipe happy, putting our groceries, clothes, holidays and service charges on our credit cards. We wanted mortgages, we took out loans, we watched Property Ladder and What Not To Wear. Financial Fitness - Are You Exercising the Right Muscles to become Financially Fit? Are your financial muscles well toned and healthy or flabby and weak? Do you want to change your relationship with money so you can have control over your financial future or do you want to continue to complain that you don't have enough? Exercise these 10 muscles to achieve Financial Fitness.1. Debt Management - Watch Out for Bank Fees! During the last twenty years, banks have offered a number of improvements in the area of being customer-friendly. The old 9 AM - 2 PM "banker's hours" are gone, replaced by a schedule that makes it easy for most people to visit when the bank is open. Whats The Truth Behind Your Finances? Between 15 - 20% of people in our country (UK) own there own businesses. This statistic is on the rise thanks to the incredible invention of the Internet. Financial Security 1) HOW TO LOOK FOR A JOBA) The Chronological Curriculum:1. First and foremost you have to be able to write an effective resume or curriculum. Budgeting Tips to Save Real Money Sticking to a budget can be difficult, but with so many demands on your finances you have to be extra cautious. TV ads are constantly bombarding the airwaves with messages that you need to buy this or you must have that. Succession Planning Have you ever thought about what you are going to leave your children when you pass from this earth? Wouldn't it be a great feeling to be able to give them a really good head start in life - without actually spoiling them?It really doesn't matter how old you are, it's something that you need to be thinking about and planning for now. In the process of planning your inheritance and blessing your children, you are really making YOUR life better and more financially secure because you'll enjoy these benefits before you pass them on. Retirement Income Needs---Less Than You Think? It is widely written that you need 75% of your presentincome to maintain your present life-style in retirement. Ifyou make 100 thousand now, figure 75 thousand inretirement. Stretching Your Grocery Dollars Shopping for groceries is an inevitable fact of our ever busy lives. We may imagine that we are saving time by dashing in, roaming the aisles and throwing whatever looks good into the cart. Affording a Home Can you really afford a house? If so, how much house can you afford? To determine this answer will take serious financial planning, and the best time to start is at least six months before buying the home.Although buying a new home may seem like an American Dream or romantic venture, the reality is that the house you can afford depends on your current income and debt obligations. Avoiding A Nightmare On Renovation Street You've decided you want a bigger, better and more desirable house. How do you determine when to renovate, what to do and importantly, how much will it cost and will we get our money back?Unless you're in the building industry, most people are fairly naïve when it comes to making decisions about renovating. Resources to Help You Learn About and Protect Yourself from Identity Theft There is a new bill that is being passes, it is a very weak bill but if passed, it will prohibit using a social security number for identification purposes. This bill should take affect in 2006. How to Obtain a Non ChexSystems Bank Account Without Being Scammed Predatory lending exists in the mortgage industry. It's typically when a mortgage broker add's on unnecessary fee's to a bad credit application, because he or she knows that the applicant is in a desperate situation. Do You Know What Tomorrow Will Bring? I've been sharing the following idea with people for a few years now, and realized recently that I had never written specifically about it. So here it is:"I cannot predict the future. |
home | site map | contact us |