Personal Finance Information |
5 Steps to Healthy Spending Habits
Next to our physical health most of us are primarily concerned with our financial health, and with good reason. Although our intentions are usually great our follow-through and discipline generally isn't. Mere mention of the word budget or cutback sends us into fits. Healthy spending habits need not be synonymous with deprivation - a bad word in our "you deserve it/you've earned it culture." Those interested in cultivating more healthy spending habits will be happy to know that rehabilitation is painless. Step 1. Start with a spending log. Yes, you have heard this advice before. This exercise is eye-opening if you do it diligently. If you have been unable to keep such a log because it is tedious or difficult to remember, consider using your debit card for every purchase. You can find the Visa/Mastercard logo nearly everywhere you shop or buy, including many fast food spots. With online banking you will have access to a visual record of all your spending. This is a great way to begin to spot patterns and decide where you can cut back. Step 2. Analyze your online account statement (four weeks is ideal) to help you determine where your money is going. Most credit unions offer to the minute transaction information. Review your log without judgment. What you have done, in terms of your spending, does not matter - at least not yet. What does matter is that you get a firm hold on your expenses. For example, how much money do you spend on coffee each week? Dry cleaning? Take out? Movies? You get the idea. Step 3. Next, write down all sources of income. With a list of your income and expenses in hand determine your priorities. Begin your budgeting process here. Obviously housing and other fixed costs will figure prominently on your priority list. Now, take a look at the conveniences that represent variable expenses. This is likely where you will find room to make changes. For example, if you subscribe to a video service can you get the two DVD plan instead of the three or eight DVD plan. If you buy coffee each day, can you bring it from home a time or two each week? Or would you be willing to purchase a smaller or otherwise less expensive cup? Can you clip coupons or eat out a little less? Step 4. Write a budget in pencil. Writing in pencil will help you remember that your budget is a fluid document. As you live with it you will probably need to make changes. That's okay. You may even want to include a little mad money each month. It is far better to blow a budgeted $20.00 than it is to impulsively fritter away $200.00. Step 5 Set a savings goal and make it something specific and important. A meaningful savings goal keeps feelings of deprivation away while providing the motivation you will need to stay on track. Be patient with yourself if you do get off track. If it helps, try writing your goals down and posting them or maybe even carrying a picture that represents your goal. Refer to these as often as you need. It may also be useful to try to determine what emotional need your spending fills for you and look for another way to get your needs met. Remember, developing a new habit takes practice. In time you may even learn to love your new healthy spending habits. It is liberating to be in control of your finances. So, go ahead, clip those coupons. Write your budget and honor your savings goal. That (insert your goal here) can be in your future if you decide to make it happen. Nicole Soltau is the President and Founder of http://CreditUnionRate.com.
MORE RESOURCES: Unable to open RSS Feed $XMLfilename with error HTTP ERROR: 403, exiting |
RELATED ARTICLES
How to Balance Your Checkbook - Get a Calculator and Pencil and You are Ready To Go! Despite how easy it is to balance a checkbook, very few people take the time to do it and the few who do, don't always do it the right way. If you write down in your checkbook ledger what should be deducted and added, you are on the right track - if not, start there and follow these nine easy steps to a balanced checkbook. Understanding and Controlling Your Finances Have you ever wondered what it would be like to be able to have complete control over your finances?If you are like most normal people, you have a job. You go to your job every day. What is a Traditional IRA? With a traditional Investment Retirement Account (IRA) you pay taxes when you take the money out at retirement in the future. Make sure that this account is really worth opening in your situation because what you put in the account today may be fully deductible, partially deductible or non deductible, depending upon your income and other retirement coverage. Improving Your Financial Position If you want money you need to learn how to control it. You need to improve your financial education and build your discipline. College Expenses: Seven Ways to Save on an Education Many people graduate from college owing thousands of dollars in student loans. It isn't uncommon for students to graduate owing $30,000 to $40,000. Family Money Management: The Importance of Agreement Are you having problems with debt? Are you afraid to answer the phone because it may be an angry creditor calling? Do you have problems getting from one paycheck to the next? The simple answer is that you need to budget. But for that budget to work, both you and your spouse need to be in total agreement. If I Had a Structured Settlement, I Would Use It to Pay for Gas Has anyone been to the gas pumps lately? Soon $3 a gallon will be the asking price and we'll either have to become cyclists or create some additional income. I plan to do both of course because you can balance thrift and greed pretty well as you ride your bike to work. UK Parents Inactivity Harming Their Children's Future University and Mortgage Savings The British government at the beginning of this year officially launched its Child Trust Fund (CTF) initiative in an effort to encourage parents and children to develop the savings habit and to teach children the value of saving their own money.Chancellor, Gordon Brown said, "The Child Trust Fund is designed to ensure that every child in our country has assets and wealth and that no child is left out and all children in Britain have a stake in the wealth of the nation". Benefits of Personal Finance Software In this age of information, keeping track of your finances does not mean an archaic jumble of ledgers, calculators, and papers filled with calculations in chicken scratch. Now everything can be taken care of on your computer through personal finance software. 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. Government Grants - Beware of Scams As the saying goes: "Buyer Beware". If you see ads claiming youqualify to receive a "free grant" for education, to start a homebusiness or to payoff unpaid bills, be wary. Safely Save for Your Childs University Studies Using An Education IRA! This investment retirement account (IRA) is useful to you as an investor to understand because it may be a good way for you to save for your kid's education AND save on taxes. These plans are now called Coverdell Education Savings Accounts in honor of the late U. Ways to Save Energy and Slash Electricity Bills 1. Lighting & Light Bulbs Install low energy light bulbs in rooms you use regularly - they last up to 15 times longer than a normal light bulb and provide the same lighting for a quarter of the running cost. Honor Those Who Serve with Checking Account Supplies Our global society has had a wake up call in the last five years regarding our safety. But there are those in our communities that fight to keep us safe from day to day. Money Saving Tips. Maximize Savings on Everyday Items! Frugal living is more than a lifestyle. It's a passion. How to Save for A Down Payment Saving for a Down Payment is hard work, so it's a good idea to really want to own your own home by the time you begin your Savings Account. It's difficult to turn down a weekend in the Bahamas (or Downtown at the Clubs!) when you don't have a definite goal. Should You Borrow From Your 401(k) Account? If you have a 401(k) account, it can be very tempting to borrow from your account especially when your balance is very high and a loan could easily pay off existing debt, fund a home purchase, or pay for college tuition. Before you make the decision to borrow money, there are several things you must keep in mind to avoid risking your funds. Budgeting is Bothersome It doesn't take much for you to get behind on monthly bills, but it sure takes some time to catch up. The comparison in my mind is to weight gain. Personal Finance - Why You Should Compare, not Despair Sorting out your personal finances can be a tricky and exasperating time. Whether you are looking to obtain money through a loan, protect your finances with life insurance, medical, travel or car insurance, save some money through an individual savings account (ISA), apply for a credit card or a mortgage, change a telephone or fuel utility supplier, or simply decide what the best current account is for your needs, the choices are seemingly endless as well as being extremely complicated. Kundalini Lessons - Money I've been going through and interesting growth period lately that I thought I'd share, as some of the lessons were pretty profound (at least for me).I've written before about my awakening and the joys and tribulations since, and I've also mentioned that it's an ongoing process which, as far as I can tell, doesn't really end til you shuffle off this mortal coil. |
home | site map | contact us |