You'll know a "convenient" psychic by the consistency of his/her predictions. The oldest trick in the book is to change, or adjust, predictions based on new information. When the client offers new and important information, predictions "conveniently" change. You acquire new information all the time while tracking and comparing your spending. Adjusting spending is directly related to the tracking and comparison of spending transactions. Use this new information to adjust your spending accordingly and help fulfill predictions.
Adjust spending to keep your spending management plan on track. If you are tracking and comparing your spending, as you should be, adjusting will come naturally. You'll adjust current and future spending, if necessary, to meet more realistic values. Adjust future goals that could be effected as well.
Help fulfill your financial goals by adjusting your spending and/or goals. At some point, while tracking and comparing your spending transactions, you may find that funds are not available, as planned, to set aside for predicted future spending or goals. In this case, you will need to first adjust what you currently spend if possible. If adjusting what you currently spend is not an option, then adjust the goal to a more realistic value or timeline. Perhaps you will need to reduce the allowance set aside for this goal and extend the estimated time to complete.
Your spending management plan is not written in stone. It is intended to be a plan for now, a plan for the future, a plan for life. Life changes. Families grow, children grow, and sometimes life brings us little surprises along the way. Your needs and your family's needs will change. A complete spending management system will help you predict, plan for, and achieve the financial needs to accommodate those changes in life. Spending management is a beautiful system of money management that grows with you throughout life. Plan, track, compare, and adjust your spending mangagement plan accordingly to meet your growing needs.
Tuesday, March 4, 2008
Sunday, February 24, 2008
Monitoring your spending
I'd much prefer if all predictions, at least the good ones, went exactly as predicted. However, sometimes reality is much different. You should be monitoring your spending by tracking and assigning purchases on a daily basis. What if you consistently find that your spending predictions are out of line with "real" spending. Comparing spending is necessary to keep your budgeting figures "real" and practical. It will be difficult to maintain a spending management plan on unrealistic money values. Keep expected spending figures at a practical value.
For example, you've predicted and planned that you will spend, on average, $195 for your electricity expense per month. But, try as you may, you consistently spend closer to $230 per month. Expenses that vary, like some utilities, should be averaged to a realistic value in your spending management budget plan. If you find by comparing your actual spending to your planned spending that the actual value is less, or more, than predicted, you must consider that your prediction may have been a little off. Comparing actual spending habits with predicted spending is essential to budget planning success. Compare your spending, and keep it real, and you'll succeed!
Comparing past and current spending will be helpful in analyzing realistic future goals. If you know you only have a specific amount of funding, after setting aside for expected expenses, you have a clearer understanding of how much you can set aside for future goals and approximately when they will be realized. Setting a financial goal only to find that it is not possible to complete the plan financially, or in the time allotted, can be discouraging. Compare to be realistic with your financial goals.
Comparing predictions with reality is important in keeping your spending management plan "real." Expecting more of yourself than realistically, financially, possible will only result in financial failures. You want to work towards financial successes. Don't live in a fantasy financial world. Don't set yourself up for failure. Individuals who do, tend to fall away from budget planning and ignore financial goals altogether. Comparing your past, present, and planned spending is essential to complete spending management. Creating, and properly maintaining, a complete spending management plan is the key to financial success.
For example, you've predicted and planned that you will spend, on average, $195 for your electricity expense per month. But, try as you may, you consistently spend closer to $230 per month. Expenses that vary, like some utilities, should be averaged to a realistic value in your spending management budget plan. If you find by comparing your actual spending to your planned spending that the actual value is less, or more, than predicted, you must consider that your prediction may have been a little off. Comparing actual spending habits with predicted spending is essential to budget planning success. Compare your spending, and keep it real, and you'll succeed!
Comparing past and current spending will be helpful in analyzing realistic future goals. If you know you only have a specific amount of funding, after setting aside for expected expenses, you have a clearer understanding of how much you can set aside for future goals and approximately when they will be realized. Setting a financial goal only to find that it is not possible to complete the plan financially, or in the time allotted, can be discouraging. Compare to be realistic with your financial goals.
Comparing predictions with reality is important in keeping your spending management plan "real." Expecting more of yourself than realistically, financially, possible will only result in financial failures. You want to work towards financial successes. Don't live in a fantasy financial world. Don't set yourself up for failure. Individuals who do, tend to fall away from budget planning and ignore financial goals altogether. Comparing your past, present, and planned spending is essential to complete spending management. Creating, and properly maintaining, a complete spending management plan is the key to financial success.
Sunday, February 17, 2008
Track and record finances
You've created a great budget and have planned for current and future spending. You want your spending predictions and financial goals to stay on track, now that you have a practical plan to achieve them. Today's spending will directly effect the success of planned spending. After all, if you overspend on current needs, you won't have the funds available to keep your finances moving towards your goals. So, how can you assure yourself that your finances are moving in the right direction? Tracking spending accounts keeps you in control of your money!
Track your spending accounts and assign transactions to appropriate budget categories daily. Making this a daily "to-do" will give you the knowledge to keep your finances moving in the right direction. Tracking purchase transactions daily gives you a clear picture of how much you have left to spend in each category at any given time. You've set your limits based on your individual financial information. Now, track your spending to be sure you stay within those limits. If you skip this important part of a complete spending management system, you will inevitably overspend and be short the funds to apply to future spending and goals. Give your financial predictions the winning edge. Track spending daily.
Tracking in real time is an innovative method of tracking your money. Real time money management retrieves transactions from spending accounts in a timely, efficient, manner so you can stay on top of spending everyday. Assigning spending transactions to their appropriate categories, as soon as possible, gives you an up to date picture of how much you have spent, and how much you have left to spend, in each budget category. This technique eliminates month end spending surprises and puts you in total control of your money.
Finding out you've over spent after the fact doesn't leave you many options. You no longer have the option not to spend on that expense. You must adjust other spending goals to make up for the mistake. Usually, this adjustment will come from your planned future spending. Your funding for future financial goals will be neglected and your budget falls away from "the plan." It's too late to adjust your spending accordingly once the money is spent. That's why it's so important to track your spending as it occurs.
Keep your predictions and goals on track. Track and record purchases in a timely, efficient, manner to maintain complete control of your money. This is an essential part of a complete spending management system. Know what your current financial picture looks like to give yourself more decision options. Keep the doors to your financial success open. Track your spending to keep your financial predictions and goals on track.
Track your spending accounts and assign transactions to appropriate budget categories daily. Making this a daily "to-do" will give you the knowledge to keep your finances moving in the right direction. Tracking purchase transactions daily gives you a clear picture of how much you have left to spend in each category at any given time. You've set your limits based on your individual financial information. Now, track your spending to be sure you stay within those limits. If you skip this important part of a complete spending management system, you will inevitably overspend and be short the funds to apply to future spending and goals. Give your financial predictions the winning edge. Track spending daily.
Tracking in real time is an innovative method of tracking your money. Real time money management retrieves transactions from spending accounts in a timely, efficient, manner so you can stay on top of spending everyday. Assigning spending transactions to their appropriate categories, as soon as possible, gives you an up to date picture of how much you have spent, and how much you have left to spend, in each budget category. This technique eliminates month end spending surprises and puts you in total control of your money.
Finding out you've over spent after the fact doesn't leave you many options. You no longer have the option not to spend on that expense. You must adjust other spending goals to make up for the mistake. Usually, this adjustment will come from your planned future spending. Your funding for future financial goals will be neglected and your budget falls away from "the plan." It's too late to adjust your spending accordingly once the money is spent. That's why it's so important to track your spending as it occurs.
Keep your predictions and goals on track. Track and record purchases in a timely, efficient, manner to maintain complete control of your money. This is an essential part of a complete spending management system. Know what your current financial picture looks like to give yourself more decision options. Keep the doors to your financial success open. Track your spending to keep your financial predictions and goals on track.
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