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Managing Money Info
-Financial
Strategies
Dealing with:
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-Money
Issues Children & Credit:
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Kids Credit Saving Tips:
-Saving Money
-Savings/Investing Calculator
-Trimming Expenditures
-Cut Grocery Store Costs
-Avoid
Wasting
Budgeting:
-Why
You Should Budget
-Developing a
Plan
-Mistakes to Avoid
-Money
Spending Challenge
General:
-Checking Accounts Money
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-Checking
Accounts
Mortgages
Auto Loans
Personal Loans
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OVERSPENDING? TRY THE 7-DAY MONEY CHALLENGE!
Are you one of those people that finds themselves
always wondering where there money goes or how come you
spend so much, so fast, on nothing?!
Back in the day, people
would bring their weekly paychecks to the bank for
deposit. The majority of the money would go into a
savings or
checking account, and the rest would go in
the pocket. The cash was intended to last until the next
paycheck. If it did not, it was an apparent signal that too
much money was being spent.
Let's jump ahead to modern times when paychecks are
electronically deposited and we fill our pockets with
debit and
credit cards. Old, worn out dollar bills and
bulky coins never dirty our hands. This is much more
pleasant than the old days. However, this type of
financial living makes it simple to 'break' the budget.
When you can't see a diminishing pile of cash, it
becomes more difficult to identify how much money is
being spent. Sure, you can check your
bank account
online daily, but most people do not. They are in for
quite shock when they finally discover their
balance, or lack of. Its not the
car loan or mortgage
that is hurting them, its the daily draining of money.
If you find that this scenario pertains to you, the
seven-day money challenge below will help you regain
control of your finances.
Performing this experiment should give you a real
wake-up call by making you realize how much you are
actually spending.
Determine what your weaknesses are
The following is an excerpt from a letter receive
from one of
clients...."I was trying to make my money last Friday to
Friday. I would carry a little notebook with me and
would write down if I stopped for food, coffee, gas,
etc.. When it came time to
buy gas Tuesday morning, I did
not have enough money. As a result, I had to use my
credit card for the remainder of the week. I was stunned
and very let down."
It's likely that most people can relate to this one way
or another. Keeping
records of your spending will allow
you to determine your weaknesses and resolve to altering
spending habits. It is unfortunate that it often takes a
jaw-dropping experience for people to see what is
happening.
The money diet
Way too often, people set financial goals for the
children's education, retirement, etc. but come up
short, or even fall of track, because their budget is
out of control.
The biggest problem are
the variable expenses. Accounting for fixed expenses is
easy. Your daily habits will make a large percentage of
the money that is not accounted for.
Taking the money
challenge is similar to a diet. You can not expect to lose 40
pounds overnight, and you can't anticipate to put an end
to years of poor spending habits in a week. However, if
it makes you second guess about spending $20 on items or
goods you really do not need, you are making
advancement. And, similar with a diet, there will be
some motivated people that will make the change lasting
and then there will be individuals that will revert back
into their old routines.
Get prepared in 3 steps
If you want to get a grip on your spending behaviors,
all it takes is a tiny notepad and some willpower.
Step 1: Determine how much cash you
necessitate to cover a week's worth of groceries/food,
gas, magazines, cigarettes, and whatever else is part of
your daily expenses.
Step 2: Be truthful. Don't intentionally
overestimate so that you have more money than you need
to make it through the week.
Step 3: Put the projected amount aside and
do not use credit or debit cards.
If you make it through the week with just using the
money you put aside, great! Don't worry if you need to
visit the
ATM once or twice. Go over your spending and
determine where you could have cut back on costs. This
is a test to see how well you can develop a mind-set
where you are continuously analyzing and altering your
daily cash expenses. It can result in you having more
money in your savings account...as well as success with
your long-term financial planning!
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