budgeting Archives | Page 7 of 11

6 Money Hacks To Keep You On Budget

Are you having a difficulty to stay on budget every month? Perhaps it is about time to try a new approach. Here are just some ways to improve your financial situation…

1. MAKE SAVINGS THE FOCAL POINT

I am assuming that you are already set with your budget. You know how much money is coming in and how much money you have now. To grow that money and to prepare for major spending (e.g., buying a property or a car), you must focus on saving. Set up a savings account to make things easier for you. Then, allot an amount to save each month. Seeing your savings balance increase will be a treat to your eyes.

2. SPEND THE CASH YOU HAVE

Whenever I am going out, I leave my credit/debit cards behind and put a relatively small amount of cash in my wallet. This amount is enough for me to survive the day. Furthermore, I am not tempted to buy unnecessary things even if there are several shopping malls along the way.

You can also apply this trick to stay on your budget and be mindful about how much you spend. Try it for a few weeks first to get used to it.

3. REVAMP AND RECYCLE YOUR STUFF

Fix, refurbish, or recycle your furniture, decor, or appliance that are still in good condition instead of saving up money to replace these. As you revamp your stuff, use warm colored paints to brighten up the mood! Or, recycle your old drawer and turn it into a shelf. There are many ways you can think of to upgrade the look of your home without having to spend so, get your creative juices going!

Image Credits: Sean and Lauren via Flickr with Creative Commons License

4. CUT DOWN ON UNHEALTHY HABITS

Unhealthy habits, such as drinking alcohol or smoking tobacco, that you enjoy on a regular basis can not only increase your insurance premiums but also your daily expenses. When you decide to stop drinking and smoking entirely, you will see your bills going down and you will feel improvements in your health – in no time.

5. PRESERVE THE RECEIPTS

To make a budget, you probably stored a bunch of receipts and monitored your expenses for a month. But, you still need to keep an eye on it in order to stick on your budget. Save up all your receipts and categorize them. If you find something that you spend too much on, analyze if you lower your spending on it. For instance, frequent restaurant take-outs can put a toll on your budget.

6. REWARD YOURSELF

One of the quickest ways to adapt a new approach is to have a reward system. Reward yourself each time you reach your financial goal. You do not have to spend a hefty amount to indulge. Have a sleepover with your friends or read a delightful book. Finding ways to associate the budgeting process to a positive feeling will help you reinforce more good habits and get rid of the unhealthy ones.

Image Credits: Vox Efx via Flickr with Creative Commons License

Sources: 1 & 2

Do Not Let These Feelings Drain Your Money

“Emotional Spender: Someone who spends money freely to satisfy his or her feelings at the moment.”

Whether the feelings or emotions are positive or not, letting these dictate your purchases may potentially lead to a disaster. Ask yourself, are you one of them? Another interesting characteristic that an emotional spender has is the regret after spending. This is sometimes due to spending more than one can afford. Fortunately, you can change for the better!

The first step you must take is to identify the problem by figuring out what emotions or feelings trigger your snap financial decisions. Then, use budgeting to guide you as you stop this nasty buying habit.

Here are some of the emotions that may affect your free spending:

1. ANGER

Let us start the list off with Anger. Shopping while you are angry makes you more likely to take risks. This is because purchasing while you are angry can make you feel empowered. For example, if you are angry with your spouse, you can just grab your credit card (i.e., from your joint account) and not care about how much you spend on clothes. An expensive revenge indeed!

Solution: Making yourself feel better by filling the void inside you is not a good move. Instead, lock yourself in a room, play your favorite song, and write down what you feel. Do these things to help you simmer down and avoid emotional purchases.

2. BOREDOM

Having too much time in your hands can make you spend more. Shopping, a very pleasant activity can keep you busy and make you feel occupied. So, it may act as a substitute for other fulfilling and productive activities. For example, if you work from home, it is natural to have a few hours to spare. As leisure, you decided to go on shopping trips since shopping is not only a boredom buster but also an activity you can do alone.

Solution: Find a fun hobby or activity to occupy you when you are bored. You may try cooking different pasta recipes or catching up on your favorite TV shows. Toggle.sg lets you watch episodes of your favorite shows at Channel 5, Channel 8, Channel U, Okto, Suria, and Vasantham – at no cost!

3. HAPPINESS

How can a positive feeling make you splurge your paycheck? Well, it is possible if you want to celebrate a milestone (e.g., promotion, raise, or graduation) in a grand fashion. According to research by Harris Interactive, 53% of people are guilty of celebratory shopping. This goes to show that shopping in a good note is normal but it may come with expensive price tags.

Solution: Celebrate a momentous event within your means. Having an intimate gathering of your closest loved ones is better than having a huge graduation party at a 5-star hotel. It is okay to indulge once in a while as long as you have money to spare. You deserve it!

CONCLUSION

Spending the money you either do not have or you can well spend elsewhere to satisfy your emotional needs only create more problems than solutions. If you set up a budget with a room for reasonable indulgence then, it is acceptable to spend. After all, that is how personal finance should work.

Image Credits: Antoine K via Flickr with Creative Commons License

Sources: 1 & 2

Golden Do’s In Giving Your Child’s School Allowance

As the modern world has become more complex, children nowadays have been inseparable with school allowance or pocket-money. From a variety of books, to a selection of gadgets, accessories, or snacks…there is always something else they needed to buy! Furthermore, they are more knowledgeable about money as they have access not only to the lives of their friends but also to the kids around the world – through the Internet.

Having these in mind, giving money to your children must be used in the most positive manner in order to mold their values while young. Let us first start with the amount to give.

Most mothers in Singapore agree that an allowance of about S$5 is enough for the needs of children in Primary 1-6. This is done so to meet the costs of food and other miscellaneous. But, if the day falls on a co-curricular activity, they give extra cash.

Aside from this, the best way to decide the pocket-money amount is to discuss it with your child. Know his or her needs and plan it together. Start giving this amount on a regular or consistent basis so that your child can manage his money accordingly.

After the suitable amount is settled, let us evaluate the Do’s in allowance giving…

1. TEACH THE VALUE OF SAVING

Teach your kid to make their own monetary choices by giving the allowance in smaller denominations (e.g., three pieces of S$1 coins and four pieces of S$0.50 coins) so he or she can save a part of it (e.g., 10% or S$0.50). Promote saving by providing a piggy bank or a money jar with their name on it.

2. TEACH THE VALUE OF EARNING

Instead of just handing cash over, make them earn it. Instill the importance of sharing the household chores around the house then, reward him or her for chipping in. You do not have to be all competitive about it by assigning a dollar for each chore, just explain what your child can do to help out.

3. TEACH THE VALUE OF MONEY

Money is a currency that puts relative price on almost everything. Letting your child make a few unnecessary purchases, such as spending their entire savings on sticker tattoos, as a part of the learning process is OKAY. But, it is also acceptable to put limits on what your child can spend on. This shall teach both the value of money and responsibility of a smart consumer.

Image Credits: Aka Hige via Flickr

Sources: 1 & 2

Preparing For Retirement: Should You Spend Less Or Earn More?

In order to make your dream of retiring early a reality, you generally have two options: to spend less or to earn more. If you are an avid reader of personal articles, it is no surprise that spending less is included in “Ways To Save For Retirement”. But, when you want to focus on maximizing your earning potential then, you will have to do several measures to earn more.

SPENDING LESS

Pros:

Spending less gives an a more instantaneous result compared to earning more due to its direct nature. It is easier to accomplish because of money management and budgeting techniques.

Cons:

There is a limit to when you can spend less before you hit a boiling point. For instance, some people restrict their way of life to the point that it is extremely uncomfortable and unsatisfactory.

Tips:

Lower your utility bills by unplugging cables, turning off the lights, and minimizing the air conditioner temperature.
Cancel your hand phone plans and switch to prepaid in order to regulate your telecom bills.
It is important to track where your money is going through the last month’s bank statements and receipts. Notice what you have spending too much on and reduce it.
Cut down your T.V. bill by canceling your cable subscription and opting for watching at Toggle.sg. Toggle.sg lets you watch episodes of your favorite shows at Channel 5, Channel 8, Channel U, Okto, Suria, and Vasantham – for free! But, viewing of premium content is on a subscription basis.
Lastly, if you are buying a new appliance, make sure that it is an energy efficient model. Smaller appliances not only help you save more on space but on bills also.

EARNING MORE

Pros:

The ways you can earn are endless. Ultimately, it is based on your good financial choices, a ton of effort, and a sprinkle of luck. Additionally, here is no limitation in the amount you can possibly earn.

Cons:

Making more money takes time and effort. You will need to find a better job or to work more hours in order get a start-up capital for your small business. The flow of profit after the initial business launch takes time too.

Tips:

Increase your earnings by upgrading your skills. To upgrade your skills, you can enroll to workshops or courses. Consider going down to your community centre (CC) and find out the affordable courses they offer. Transform the awesome skills you learned into viable freelance businesses or part-time occupations.

Start your own small business such as an online clothing shop. Online business allows you to sell your product or service at the convenience of your own home and your own time.

Lastly, contemplate on proposing a salary increase or a leaving the company for a better company.

WHICH ONE WEIGHS MORE?

On your way to save for your retirement fund, frugality or spending less is the first step. Once you are financially stable, it makes more sense to seek for higher income.
You can earn millions of dollars but if you are spending irrationally, you can get into financial problems. And, even if you are cutting down your spending, you may not reach your goal if you do not earn a decent amount of money. So, the best way to reach your retirement goal is to have a combination of both options.

(Image Credits: 401(K) 2012 via Flickr)

Source: 1

4 Ways To Stop Your Couple Woes Over Money

They say that love is unconditional, selfless, and priceless. But the truth is, you have to spend money for roses, dinner, or even diamonds during special occasions such as birthdays or Valentine’s Day. And these gifts do not come cheap! The influence of money on the relationship does not stop there. It is significantly present in marriage. In 2012, a study found that the more regular couples argued over money, the more likely they were to get divorced.

There are different reasons why couples have dispute over money. One reason is the opposing views that deeply affect their values to the point that it is hard for them not to be self-righteous in the subject. Although, if both parties truly love each other and are willing to work things out then, they can set their differences aside. Here are 4 helpful ways to stop your couple woes over money…

1. DISCUSS YOUR VALUES ABOUT MONEY

To prevent another issue to boil, understand each other’s view by explicitly discussing your differences on financial issues. For example, if your partner is a saver then, he or she may view money as an important currency that shall not be wasted.

Learn put yourself in your partner’s situation (i.e., spender or saver) by recognizing his or her financial strengths. For example, if you are buying a washing machine. While a saver may lean towards a cheap and used machine, a spender will want a costly and new machine. Compromise by combining the saver’s ability to get a good deal with the spender’s ability to commit to a new purchase.

Related Article: Psychology of Spenders and Savers

2. RELAX AND WRITE

When faced in a situation where you are already frustrated and about to burst, take a step back from those feelings. Avoid blaming or shouting at each other. Instead, write down your feelings or values about money and how you want your money dynamics to change for the better. When your temper is gone, exchange letters to know where your partner is coming from. If you want to break the cycle of feud, you have to work together to a fresh start.

3. PRODUCTIVELY PLAN TOGETHER

Ensure that you will have a productive and open communication on your financial goals and new budget plan. Change can be difficult and you may need to remind each other of your dreams and budget from time to time.

4. ENCOURAGE INDEPENDENCE

Although you have a joint bank account, you may want to have separate bank accounts for your personal finances including buying gifts for your spouse or child. This degree of financial independence can help you deal with the changes better. Keep in mind that you shall still honor the new budgeting scheme and financial goals even if you have a personal account.

Image Credits: Robert Bejil via Flickr

In resolving your money woes with your partner, it is important to keep an open mind. Remember that it is not about winning or superiority, instead it is about understanding your partner’s perspective on money.

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