Sunday, February 24, 2008
Monitoring your spending
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
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.
Tuesday, February 12, 2008
Preparing for future spending
Seeing beyond today's spending, and planning for future spending, is the way to achieve your predictions for future financial goals. Let's say you predict that you will be free from debt. You set a goal to become debt free. You create a practical debt elimination program and include the amount for payment in your budget plan. Your budget now includes a plan to set aside money so funds are available when payment is due. And, your goal to become debt free is achieved on schedule.
If you're financially able, you may predict and plan for other financial needs at the same time. Otherwise, predicting, planning, and achieving each goal in order of priority is a logical way to approach all of your financial goals. Reviewing current and past spending and situations can aid you in predicting future needs for yourself and other family members.
You look into your crystal ball and see that sometime in the future you will probably need a family car replacement, or major repairs on the current family car. Planning for future spending is one of the great benefits of a complete spending management system. Budgets allow preparation for predictable and unpredictable (emergency) expenses. You predict how much money, and when, you will need to accomplish a goal ( or fulfill a need ) and plan for it accordingly. Set aside a specific amount each pay period to meet the needs of a goal.
Include preparation for life's unpredictable emergencies in your budget plan as well. This will keep you more focused during times of need. This theory applies to every goal you have set. Whether your crystal ball foresees a new home, a college education, a wedding, or other major life change, you will plan and save for this future spending in your budget.
By now, you should be realizing the benefits of having your own crystal ball to guide you down the path to financial independence. You should also understand why budgeting is an important part of complete spending management. Budgeting will prepare you for whatever the future holds for you and your family. Emergencies will be merely obstacles that might set you back somewhat. They will no longer be financially devastating events.
Give yourself a clear picture of your financial future. Predict what you want (or will need) and plan for your goals accordingly. Budgeting for current and future spending is essential to realizing your financial predictions, independence, and security. So, what are you waiting for? Look into your crystal ball and start your budget plan today!
Wednesday, February 6, 2008
Money Management Technique
Well, as far as psychics go, I can't say if there's any truth in it or not. However, if that crystal ball was a spending management plan (a complete money management technique), I'd say that psychic was right on target! Fact of the matter is - you can't really predict the state of future finances without planning for them. That's just part of what managing your spending completely can do for you. When you use this complete money management technique your are...
Planning for spending – Budget and set aside funds for current and future spending (expected and unexpected). This means being prepared, and having funding available, for expected and necessary expenses, as well as unexpected (emergency) spending.
Tracking spending – Track what you spend by reviewing and recording spending transactions in appropriate budget expense categories. Keep track of total amounts spent in each category to keep within planned limits.
Comparing spending – Look into your crystal ball. Compare what you've actually spent with what you've planned to spend. Is it more or is it less? Compare past spending with current spending and planned future spending to foresee and anticipate (plan for) consistence growth, or decline, of amounts spent.
Adjusting spending – Adjust planning, spending, and goals to meet changing needs. Adjust what you spend accordingly, as per comparison results, to meet actual and future needs.
Your spending management plan is your financial crystal ball. Setting financial goals, and planning for future spending, allows you to somewhat predict your future. Set goals for the future:
- plan your budget
- track spending transactions regularly to stay within budget expense limits
- compare your planned spending (budget plan), actual spending and advancement towards goals
- adjust goals or spending limits if necessary to stay on track with planning
Look into your crystal balland see the riches big and small.Oh, the riches you will see,when you manage spending completely
Learn more about this innovative complete money management program that will help you take control of your money and reach financial goals.
Sunday, February 3, 2008
Saving Money on Treats
- For a special Sunday family treat, buy your favorite ice cream sundae ingredients and make your own Sunday Sundaes. Make it a Sunday family tradition. The children will have just as much fun creating their own sundaes as they will eating these yummy treats. Going out for ice cream sundaes will cost plenty of money. Save money when you create your own at home.
- Instead of buying microwave popcorn, invest in a popper (or pop on stovetop) and buy regular popcorn kernels. This method of popping corn is healthier, saves a lot of money, and tastes better.
- Most cake mixes require milk, egg, and oil. For not much more effort you can mix your dry ingredients from scratch as well. Save money, don't buy boxed cake, cupcake, or brownie mixes. Make your own!
- Find an easy fudge recipe. Your kids will love you!
- Popcorn balls, candy (or caramel) apples, monkey bread, and rice crispy treats are all easy to make yourself
- Cookie savings anyone? Bake a variety of cookies (peanut butter, oatmeal, chocolate chip, sugar) and store in tightly sealed containers to have treats on hand whenever you need them.
- Salty savings - Cook your own fries and chips for cheaper salty snacks. A ten pound bag of potatoes costs just a few cents more than an 18 oz bag of chips.
- You can bake your own crackers. Don't believe it? Here's a recipe to try:
Wheat Thins
(makes 2/3 lb)Preheat oven to 350 degrees
F.Combine in a mixing bowl:
2 cups whole wheat flour
2 Tablespoons wheat germ
1 teaspoon salt
1 teaspoon baking powder
2 Tablespoons brown sugar
2 Tablespoons dry milk
Cut in with a pastry blender:6 Tablespoons
MargarineCombine separately and stir in:
1/2 cup water1 Tablespoon Molasses
Knead a little until smooth. Grease two cookie sheets and sprinkle each with cornmeal. Divide dough in half. Roll out half of dough directly onto cookie sheet with floured rolling pin. Roll dime thin. Sprinkle lightly with paprika, garlic, onion, or seasoned salt. Run rolling pin over once more. Prick with fork. Cut in squares or triangles. Bake 10 minutes or until lightly browned. - courtesy Doris Janzen Longacre's More with Less Cookbook