Steps to Building a Budget by Elizabeth Dargis

Many people procrastinate on making a budget because they are unsure of the process of creating one. I will take you step by step and by the end you can have your own personal budget.

Step 1: Get a small notebook to take with you. In it write down everything you buy for at least a month. Up to three months if you'd like. I was shocked to see how much our family spent on little stuff like vending machine purchases and magazines. I found that most of our money wasn't being spent on big things, but the little, "Oh, what's three dollars here or there."

Step 2: After your time period is up, analyze your spending patterns. Put all your purchases in categories like groceries, entertainment, etc.

Step 3: Now separate those categories into two categories: Fixed Expenses and Variable Expenses. Fixed are things like Rent and Insurance. The variable expenses are all those that you have in your power to change like groceries, utilities and clothing.

Step 4: Add up all the expenses in each of the categories. Write down the totals for each. i.e. Phone: $58 a month

Step 5: Add up all your income for the month. Then add up all your fixed expenses. Subtract your fixed expenses from your income. Income: 3,000 -2,100 fixed expenses =$900. The result is what you have left for variable expenses.

Step 6: Now you can spread the leftover money into your other categories. Keep in mind yearly expenses like taxes. Consider putting 10% into savings. Take a look at where you can cut down. Enter the amount you have decided to spend in each category on your budget worksheet. And now you have a sanity saving budget.

Step 7: Keep track monthly of what you spend in each category. I use Mvelopes Personal to do that. Readjust your budget if you need to. Only you know where your spending priorities are.

Basic Frugal Budgeting by Nattie Gilbert

1. Clarify Your Income and ExpensesYou can use basic budgeting and frugal ideas to reduce your monthly expenses and reach your financial goals. First, list all sources of gross income. Second, list all of your fixed expenses and subtract them from your gross income. Fixed expenses include savings, credit and loan payments, insurance payments, mortgage or rent, and taxes. The amount left is what you have for variable expenses. Variable expenses, the easiest to reduce, include groceries, clothing, auto expenses, eating out, and entertainment.

2. Reduce Fixed ExpensesLook at all of your bills to see how you can reduce them. Do you need caller id, HBO, and 4 monthly magazines that no one is reading? One at a time, cancel extras you don't need or use. Investigate insurance costs, credit card interest rates, long distance charges, etc. We now save $32 per month after switching car insurance companies. Don't overwhelm yourself, pick one area a month to look into and change whatever is possible.

3. Track Your SpendingUse a small notebook, your checkbook register or financial software to track all of your expenditures. I find it easier to use a small notebook and the check register, because I can carry it with me and stay current. Financial software, like Mvelopes Personal, does an excellent job. Our biggest problem area was food shopping. So I spent many hours researching how to grocery shop more economically, and we now spend about half as much as we were.

4. Analyze Your SpendingAfter tracking all of your spending habits for at least a month, look to see where you can reduce your spending. Is your long distance phone bill too high? You could change to a cheaper long distance provider, reduce the number and length of your calls, send emails or write instead. Do you spend too much on lunches out? You could pack you lunch – even once or twice a week helps. Do you spend too much on dinners out, especially after hard work days? You could freeze meals ahead and make it easy to pop dinner into the oven or microwave. For example, make a double batch of Sunday's spaghetti and thaw and reheat the second one on Friday night after a long rush hour.

5. How to ReduceIs there an area that you would like to reduce, but don't know how? Look it up on the Internet. For example, you spent entirely too much on cosmetics recently. Do an online search for frugal or homemade cosmetics to find some innovative and fun ways to spend less in the future.

6. Reward YourselfFrugality takes time and effort. Reward yourself for your progress, but not with financial rewards. For example, play soft music and spend the evening lying in bed reading a good book – borrowed from the library, of course!

10 Quick Debt-Busting Tips by Colin McCaig

Are you really frustrated?

Does it sometimes seem like the dollars are slipping through your fingers while the bills just seem to keep mounting up? It's a familiar feeling for many of us nowadays. Sometimes, though, like most things in life, taking a step back from it all and starting to get some simple things right can make a huge difference on the big picture.

If your debts have been getting you down recently, here are 10 great ways to start slashing them today:

1. First off, consider going on a "cash diet" for the next few months. Lock away some of those credit cards in a safe deposit box... or just cut them up altogether! By all means keep a low interest rate card for emergencies, but definitely rid yourself of any store cards. Why? Because they encourage you to buy junk you don't need at exorbitant rates of interest!

2. If you're having difficulties with any of your lenders, approach and deal with them personally. Not only will they appreciate your initiative, but will be far more responsive down the line if you're having further repayment difficulties. The one thing that irritates them most is someone ducking and diving the problem.

3. If you think you can afford to pay off any of your loans in one go, approach your lender and offer a reduced final settlement of anything between 25 and 75%. Try and get the best deal. They can only say no, and might just say yes to get some money in. When I was deep in debt, I was fortunate to pay off a bank overdraft in this way. In fact, they proposed straight off a settlement of 75%... not me!

4. Ask for a promotion at work. Believe it or not, it's estimated that one in two people who actually do this get one.

5. Shop around to get the best deals on utilities like gas and electric... A home energy audit can help save hundreds of dollars a year on heating bills. Ask your supplier who may be able to this for free or at very low cost. Many countries now have websites where you can make sure you're getting the best deal. Try doing a web search for "energy savings" plus your country. A good US site for this is: http://snipurl.com/4vjo If you're in the UK, try checking out: http://www.uswitch.com/ Also, make sure that any new appliances are energy efficient. This alone can save you hundreds of dollars a year.

6. If you have a spare room, why not consider renting it out for a while.

7. Check to see you're paying the right amount of tax. You might possibly be due a refund. Every year governments rake in hundreds of millions in unclaimed tax. You can get free software programs to help you with this.

8. Buy cheaper insurance and investments. Shop around for the best deal on all types of insurance, including life, home, health, travel and pet cover. This could save you thousands over the coming years!

9. Consider shopping more online. Online stores often give a discount as they don't have the same overheads involved when selling offline. Search for those goods you want using a search engine or ask the retailers themselves if they have an online store. Here's a great free resource to get you started.

10. Have a direct debit set up so that your debt payments leave your account the day your paycheck is paid in. That way, you'll be less tempted to spend it. And when you do get out of debt, charge a direct debit to another account and pay in a regular monthly amount (as much as you can afford.) Call this your own personal wealth insurance. You'll never regret it. By adopting the above strategies, the light at the end of the tunnel will start shining that little bit brighter. Instead of spending more than you earn, you'll soon be earning more than you spend! Good luck!

Five Major Ways to Save Money by Paul Davis

There are two main roads to improving your personal finances: increasing income, and cutting costs. Increasing income is the harder road to travel. After all, you can't always get a raise or a new job when you need one. But cutting costs, that's a different story! You're in complete control in this area. And all it takes is some imagination and discipline-both of which are free. Below are five major ways to save money in the basic areas of food, shelter, clothing and transportation. They're major expenses in your life - and places for major savings.

1. Home Cooking

Food is a major expense in everyone's budget. But, in today's convenience food society, it's easy to overlook how much money can be saved by cooking meals at home. Plus, it's fun, creative, and healthier to make your own meals. The key is to cook in "bulk" to stretch the food you buy over several meals. If you're a busy person with little time to spare, a good investment is a slow cooker (or crock pot). Generally, they run from $20 to $80, depending on the size. With a slow cooker, you can set aside some time on the weekend to cook stews, soups, and other delicious meals that can be frozen for weekday use. After a hard day at work, all you have to do is pop the meal in the microwave! More than likely, you'll enjoy an additional benefit - your taste buds will wake up from mass produced food and thank you for the delicious taste of a home-cooked meal!

2. Drive less, exercise more

Is owning a car expensive? You already know the answer to that question, don't you? Gas, maintenance, insurance costs. Plus the mental aggravation of being caught in traffic jams! Why not carpool or take public transportation-the bus, train, or light rail? Or, if you live close to work, walk or bike. You'll lose weight, lower your blood pressure, and see the world at a slower pace. And, oh yes, you'll save a couple of thousand dollars in the process.

3. Cut housing costs

This is an easy and fun way to cut costs. Instead of paying a contractor to come in to make changes or repairs, make them yourself. Local hardware stores love your business and will help you with tips and tricks on home repair. Also, do your own decorating and painting. You get two benefits by doing your own changes and repairs - you get the pride of accomplishment and you save money.

4. Cut clothing costs

This can be another major area of expenses, especially if you have a family. So, try buying used clothing... dry clothes on the clothes line instead of in a dryer... learn how to mend clothes...well, you get the idea!

5. Quit your addictions

Okay, so this is not really an easy category, but if you enjoy cigarettes and a drink, this is where you can realize some major savings. Assume you're spending $5.00 a day on cigarettes. Added up over a year, that's an expense of $1825. As for liquor or wine, we all know how expensive that is. Assume you buy one bottle a week at $10 to share with family members or friends. That's $520 a year. Add both amounts up, and the total is $2,345! That's money that could be paying down your debt or going into savings. And don't forget the health benefits. You probably have many other ideas on how to save money in the five areas. If it seems hard at times to cut costs in these places, remember one thing - you're on the road to keeping more of your money in your own pocket! As the old saying goes: "Money saved is as good as money earned".

Becoming Debt-Free by David DeFord

What keeps most people from developing wealth? What is the greatest obstacle to retirement? If you could eliminate one thing to position yourself for financial peace and security, what would be?

The answer to each question above is debt!

Imagine the freedom and peace you would feel with no debt! Imagine the small portion of your paycheck you would need to meet your needs and obligations if the all of your earnings were available to you! Think about the savings, investments, and charitable giving you could enjoy!

The safety of your family may depend upon your attention to your debt. It has been estimated that 89% of all divorces can be traced to quarrels and accusations over money.

What will it take to convince you to finally resolve to become debt free? Will you need to be cornered by a creditor? Will you have to be publicly embarrassed? Or will you respond to a milder stimulus, like the frank advice of a friend, or an article like this one?

It's not the amount of money we earn that brings peace of mind as much as it is having control of our money. Money can be an obedient, productive servant, or a brutal taskmaster.

Success has a way of passing by those who have not the discipline to handle it. Through our healthy respect for money, we can attract wealth.

Compounding interest is your enemy. It robs you of your working funds. Tony Robbins taught about the power of compounding by comparing it to a small , friendly wager on a golf course. Say that your golf partner suggested a small 10 cent bet per hole. You think, "Well, that means that only $1.80 is at stake." So, you agree. Then, he suggest that you double the bet on each subsequent hole. Here's how it would go, if your partner wins each of 18 holes: One the first hole you lose a dime. On the second, you lose twenty cents. When you add the dime from the first hole, you're down only 30 cents. Big deal! The third hole is worth forty cents, the fourth only 80 cents. Not too bad. But now watch what happens: Hole five is worth $1.60, sixth $3.20, seventh $6.40, eighth $12.80, and the ninth $25.60. When you add up your losses on the first nine, you realize you are down $51.11. Once you have finished your game, you will have lost what, maybe $150? Actually, because of compounding you will owe $19,660.80.

Now, your debts probably haven't interest rates that high, but the principle is the same – if you pay only the minimum payments on your debts, you will pay them for years and years. You will pay many times the actual principle you spent in the first place.

So, what will it take to eliminate your debt? First, you will need to determine why you are in debt in the first place. Don't spend time on the external reasons – they are excuses. What inside of you built your debt? Generally, the internal reasons center on the need for immediate gratification. Rather than saving your money for furniture, cars, or vacations, did you borrow for them? Distinguish between need and want. Maybe you wanted to keep up with the living standard of your friends or family. Or you frequently make purchases on impulse.

Search your heart deeply. Discuss your debt situation with your spouse. You can't make the needed changes without his or her help. Maybe he or she sees more clearly than you the internal cause.

Make a Plan After you have identified the internal cause, make a plan to conquer it.

Make a budget, make a goal. Decide how you will reduce your spending enough to attack your debt. Some people think a budget robs them of their freedom. On the contrary, successful people have learned that a budget makes real economic freedom possible.

Think of your debt as a cancer. You must first eliminate it's spreading, and then you must eradicate it. Use invasive treatments to kill it.

Use the snowball technique.

• Identify your smallest debt (debt one).


• Pour every available cent each payday into paying down that debt. Pay the minimum payment on the other debts.


• Once you have paid off that first debt, identify the next smallest one (debt two).


• Add the amount you had been paying on debt one to the minimum of debt two, and pay that amount.


• Let the snowball grow with each debt you eliminate.

As you continue, your snowball will get huge, and your progress will seem to multiply.

Keep a chart of your progress.

Plan ahead how you will celebrate the successful elimination of each debt along the way. But don't celebrate in ways that would slow your progress. Be tenacious. Don't let anything get in your way.

Once you have achieved your desired end-financial freedom, resolve to never have debt again – keep budgeting.

You can then begin the delightful opportunity to use your excess earnings toward building wealth, enjoying the fruits of your labors, and preparing for your retirement.

Five Major Ways to Save Money

There are two main roads to improving your personal finances: increasing income, and cutting costs. Increasing income is the harder road to travel. After all, you can't always get a raise or a new job when you need one. But cutting costs, that's a different story! You're in complete control in this area. And all it takes is some imagination and discipline-both of which are free. Below are five major ways to save money in the basic areas of food, shelter, clothing and transportation. They're major expenses in your life - and places for major savings.

Home Cooking

Food is a major expense in everyone's budget. But, in today's convenience food society, it's easy to overlook how much money can be saved by cooking meals at home. Plus, it's fun, creative, and healthier to make your own meals. The key is to cook in "bulk" to stretch the food you buy over several meals. If you're a busy person with little time to spare, a good investment is a slow cooker (or crock pot). Generally, they run from $20 to $80, depending on the size. With a slow cooker, you can set aside some time on the weekend to cook stews, soups, and other delicious meals that can be frozen for weekday use. After a hard day at work, all you have to do is pop the meal in the microwave! More than likely, you'll enjoy an additional benefit - your taste buds will wake up from mass produced food and thank you for the delicious taste of a home-cooked meal!

Drive less, exercise more

Is owning a car expensive? You already know the answer to that question, don't you? Gas, maintenance, insurance costs. Plus the mental aggravation of being caught in traffic jams! Why not carpool or take public transportation-the bus, train, or light rail? Or, if you live close to work, walk or bike. You'll lose weight, lower your blood pressure, and see the world at a slower pace. And, oh yes, you'll save a couple of thousand dollars in the process.

Cut housing costs

This is an easy and fun way to cut costs. Instead of paying a contractor to come in to make changes or repairs, make them yourself. Local hardware stores love your business and will help you with tips and tricks on home repair. Also, do your own decorating and painting. You get two benefits by doing your own changes and repairs - you get the pride of accomplishment and you save money.

Cut clothing costs

This can be another major area of expenses, especially if you have a family. So, try buying used clothing... dry clothes on the clothes line instead of in a dryer... learn how to mend clothes...well, you get the idea!

Quit your addictions

Okay, so this is not really an easy category, but if you enjoy cigarettes and a drink, this is where you can realize some major savings. Assume you're spending $5.00 a day on cigarettes. Added up over a year, that's an expense of $1825. As for liquor or wine, we all know how expensive that is. Assume you buy one bottle a week at $10 to share with family members or friends. That's $520 a year. Add both amounts up, and the total is $2,345! That's money that could be paying down your debt or going into savings. And don't forget the health benefits. You probably have many other ideas on how to save money in the five areas. If it seems hard at times to cut costs in these places, remember one thing - you're on the road to keeping more of your money in your own pocket! As the old saying goes: "Money saved is as good as money earned".