Budgets for all Occasions

Budgeting Software

2007-08-25T16:07:00.000-07:00

Budgeting software is an alternative to building your own budget, and automates your task.

Preparing a simple budget can sound like a daunting task, however it isn't that difficult once you get started and it can be quite an invaluable aid in the management of your finances.

If you would prefer something that was a little more advanced or complex which includes interest calculations on your visa card etc, to calculate how long it will take to pay off a loan or perhaps your mortgage in full, you could create a spreadsheet in excel, saying that, if what I just said has absolutely no meaning to you at all and I might as well be speaking in a foreign language an alternative would be to use budgeting software.

The beauty of budgeting software is that all of the laborious work has been done for you, all you would need to do is to input your personal data in the fields provided.

If the path you choose to take is to use budgeting software, there are many free programs available, however if you would prefer something that was more customizable to your own personal needs then a paid program would be the way to go.

Free Software
Personal Budgeting Software
Safe Install
Vista Budgeting Software

The best place to start would be to try out several of the free programs first to get a feel for how they work, perhaps compare them to some of the paid programs. Asses your needs; how do you want your budget to work for you?

Some of the additional features included in a paid program are as follows: you can edit the categories, add or remove rows/columns and display your information in a graph so that you can see a diagrammatic breakdown of your budget. (if this is particularly appealing to you.)

If you come across a paid program that you feel meets all of your requirements, download the demo version first. (usually there is a demo version available that gives you either full or limited functionality for a period of time before you must purchase it if you want to continue using it.) If you download the budgeting software demo version, use it regularly during the time period stipulated to make sure that you are happy with it and how it works that way you don't end up buying something that you find difficult and or tedious to use resulting in another failed attempt at budgeting and money down the drain.

Budget for Savings

2007-08-18T16:11:00.000-07:00

Everywhere you look it says “Pay yourself first” and at this present moment in time that seems to be an impossible task. Sound familiar? You already run out of money long before you run out of month! There is absolutely no way you can put anything aside in the form of savings it’s just not going to happen!
If you are not already managing your money correctly by way of a budget, then that is exactly where you need to start.

Set out your budget:

Start with the pen and paper method.

Don’t forget to include your long term expenses.

Once you have covered everything (don’t forget the visits to the coffee shop), you can see which expenses you can cut back on.

When you have completed your budget, you should be left with a little (as long as your budget isn’t completely overstretched) from the little you have left over, you can decide to put away some if not all of it for savings.

No matter how insignificant this amount may seem, if it is put away regularly it can certainly amount to something quite considerable over time.

Eg

You have $10 a week that you can quite easily put away and not miss it. Now it doesn’t sound like much however you have been doing it for 5 yrs.
10 x 52 x 5 = $2,600 and that is without any interest that you may accrue.

The next thing you need to do is to include this in your budget, then you need to find a way of separating the money from your everyday account.

Have a talk with your bank; there are several savings options available.

If your savings are left untouched, you will earn interest and eventually interest on your interest – this is called compound interest which can make a sizable difference to your savings.

Look into account keeping fees; you don’t want a chunk of your money swallowed up in fees each month.

If you are most definitely not going to miss this money you may even want to consider a term deposit account which will pay a higher interest rate – keep in mind, you will not be able to access this money until the term has expired.

Budgeting for unexpected expenses.

2007-08-06T02:07:00.000-07:00

Try to Budget for unexpected expenses that may arise, make a list of all of the things around your home that will probably need to be replaced at some time in the future and include it in your budget, e.g. washing machine, clothes dryer, fridge, freezer, dish washer, TV, kettle, toaster, car tyres, car service, etc.

Make a note of how much it will cost to replace each item and what you expect it's lifespan to be.

In order to calculate what you will need to put away for each individual item follow this formula:

We will use a washing machine in this example:

Let's say that the brand new washing machine you just bought cost $1000 and you expect it to last at least 5 years.

$1000/5 = $200 (per year)

$200/12 = $16.60 (per month)
$200/52 = approx $4 (per week)

That's all very well and good if all of your appliances are brand new however if they are not, you will need to take their age into account in your calculations:

If your washing machine was 2 years old and it has a life expectancy of 5 years, you will have 3 yrs to cover the cost of a new machine hence the amount you will need to save regularly will be increased somewhat.
e.g:

$1000/3 = $333 per year - you expect the washing machine to have a lifespan of 5 yrs however it is already 2 yrs old, so you need to save enough to cover the expense in the 3 yrs that you have left:

$333/12 = $27.75 (per month)
$333/52 = $6.40 (per week)

If you were to start saving for a replacement now, you may have some shortfall at the point of replacement (depending on price increases) however you won't have to foot the bill in one go or seek other alternatives to make the payment such as hire purchase/credit cards.

You would follow the same example for the rest of your long term expenses and then tally them up, this will give you an idea of how much you need to put away on a regular basis (be it weekly or monthly) in order to avoid disaster.

Create a column for your long term expenses in your budget sheet and put that amount away each week/fortnight/month (depending on the budget you have created) to decrease your outlay considerably as and when the appliances need replacing.

These steps will help you to budget for unexpected expenses saving you the heartache of having to do without.

Pen and Paper Method Continued

2007-07-29T18:56:00.000-07:00

Step 3
Make a list on the right side of the page of all of your actual expenses (and I mean everything that you spend your money on each month.) If you are uncertain of the amounts you could go through your previous bills. (Remember to amend them according to the type of budget you are creating)
NB: if you intend to add a column for miscellaneous items, please, please, please (I cannot stress this enough) make sure that you itemize them, don’t just bunch everything together. The miscellaneous column tends to get bigger and bigger; it can be just as bad as not having a budget not to mention it can possibly lead to your budget spiraling out of control once again.

Here is a list of common Expenses:

Ok now you should have a detailed list showing you where your money is going each month. Total it and then deduct it from your Total income. You will be able to see instantly whether you are overspending, whether you spend exactly what you earn or whether there is anything left at the end of every pay period to possibly allow for savings etc.

This is where you need to be brutal, evaluate where you are spending your money and identify categories that are a “WANT” rather than a “NEED”, Everything that falls into the “WANT” category can be modified, unless you are way out of control with your spending, you don’t need to cut out the “WANT” items completely you could decide to cut down a little here and there, it won’t make a huge difference to your lifestyle however it WILL make a considerable difference to your budget. If you’re spending is out of control, then it might be necessary to cut out all or most of the “WANT” items for a short period until you get your budget back on track.

Right you have your new Budget, you’ve laid it out beautifully everything is rosy and even if it wasn’t, now you can see the light at the end of that very long tunnel. What’s next? You have to STICK to it; update it every time you spend anything even if it is only a bag of lollies or a packet of gum. It needs to be accounted for.

It is essential that you put something away each month for unexpected bills; for example if an appliance suddenly broke down or your car needs replacement tires. This expense is difficult to determine, tips on how to plan for this will follow shortly.

Pen and Paper Method

2007-07-27T17:12:00.000-07:00

The pen and paper method lets get started!!!!

3 steps to creating your budget:-

The steps you need to follow with this method may seem tedious but they are vital if you wish to create a budget that is both workable and accurate.

Step 1.

Decide which type of budget will suit your needs best.

It is up to you whether you decide to set it up as a weekly, fortnightly or monthly budget. Once you have made your decision, you will have to adjust your income amounts to reflect this in the budget you have chosen.
If you receive most of your income on a monthly basis it may be easier to set up a monthly budget.
If you receive other income on a weekly/fortnightly basis, you will have to calculate what it would be on a monthly basis in order for the budget to work correctly.

Step 2

Divide the page into two, on the left side of the page write down your income from all sources. Remember to amend any amounts that are paid at different periods.

You are creating a monthly budget and one of your sources of income is paid weekly, the equation would be:

Weekly amount x 52 / 12 the result is your monthly income from that source.

Ok now we have covered the easy parts, we are going to move on to the tedious section. Do not despair; it is also the exciting part! Soon you will discover exactly where your hard earned money is going!

In time you will be able to see if or where you may be overspending, where you could possibly cut back and whether or not it is possible to maybe put money aside for savings/unexpected expenses/holidays/gifts……..whatever.

step 3 to follow shortly....

How To Budget

2007-07-23T04:17:00.000-07:00

Budget today to take control of finances:-

In order to manage your finances properly, it is imperative that you have a budget in place and that you adhere to it.

I know that this is "Stating the obvious" you are already aware that you need a budget in order to keep your spending on track, yet it is surprising how many people find that they run out of money long before they run out of month and when asked where the money went they are totally baffled.

For those of you who don't yet have a budget in place and are completely overwhelmed by the idea of creating one, we are here to help.

First and foremost, a budget isn't as scary as it sounds, for some reason just mentioning the word "budget" can send shivers down people's spines. It doesn't have to be the end of your lifestyle as you know it, in fact it is the complete opposite, once in place, you will see ways that you can improve your lifestyle, you will be able to monitor exactly where your hard earned money is going and track it down to the last cent.

So the million dollar question is: How do I set up a budget?

There are several ways in which you can set up your budget,

You can use the pen and paper method.

If you are familiar with excel, you could create a spreadsheet.

or if you find the afore mentioned too daunting, there are several software programs available on the market that are already set up, the only thing you are required to do is input your information and it works everything out for you. Some of them even work out how long it will take to pay off your credit card debt!!!!!

What we intend to do here is cover the basics of budgeting, possibly guide you through creating your own simple budget either on paper or in the form of an excel spreadsheet and review some of the budgeting software that is available.

In the not too distant future we will have a simple budget that can be downloaded by our subscribers for free!!!!

So check back often as this site will be updated regularly lots of goodies to come!!!!

Budgeting

2007-05-27T00:51:00.000-07:00

HOUSEHOLD BUDGETING

The essence of household budgeting is knowing how much money comes into the household and where it goes – your income and expenses. Many people seek help and assistance not because of debt, but because they wish to learn how to use their money more effectively for various reasons. Add a household budgeting plan and you've got a powerful tool for money management. And, likewise, a good household budgeting plan is essential for any debt management program to succeed.

Budgeting like dieting is much disliked by many because of the ‘hoo-ha’ of the extra thought and effort needed to make it work, or for the plain reason, false pride. Budgeting is essentially a matter of planning. Budgeting to include debt management in your personal finance plan builds a good strong defense against credit card use. Household budgeting helps you manage your financial affairs.

You should start your budgeting by creating a personal budget, of course. A budget is a document that lists what your income is every month, and on what you spend you money each month.

You should start your budgeting by creating a personal budget, of course. A budget is a document that lists what your income is every month, and on what you spend you money each month.

4 Tips on budgeting:

How do you prepare a budget?

Keep it Simple
write down your income
Make a list of all expenses:- rent, mortgage, car etc
Keep a notepad handy and jot down extra things you buy on a daily basis:- newspaper, petrol, condiments etc

Tips and how to coming soon