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Managing Money Info
-Financial
Strategies
Dealing with:
-Financial Emergencies
-Money
Issues Children & Credit:
-Allowances
-Teaching
Kids Credit Saving Tips:
-Saving Money
-Savings/Investing Calculator
-Trimming Expenditures
-Cut Grocery Store Costs
-Avoid
Wasting7
Budgeting:
-Why
You Should Budget
-Developing a
Plan
-Mistakes to Avoid
-Money
Spending Challenge
General:
-Checking Accounts Money
-Credit Help
-Taxes
-Checking
Accounts
Mortgages
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BUDGET MISTAKES
If you are looking to regain
control of your finances,
budgeting is a great idea.
However,
setting-up a budget can be one of the
most difficult things to do. Not
only will you have to change
your spending habits, you'll
still need to find a way to live
your life. Featured below are
some common mistakes people make
when developing a budget.
Cutting out entertainment
Every budget should have
some sort of entertainment
factored in. The trick is
determining how much. Try and
determine how much you currently
spend on going out. If the
amount you spend is greater than
15% of your total budget, it's
too much. You will need to
re-evaluate how you are spending
your
money on recreational activities.
However, don't make the mistake
of eliminating fun all
together, otherwise your
budgeting plan will definitely
not work.
Not saving regularly
When it comes to
managing
your money, slow and steady wins
the race. Automatic payroll
deductions should be utilized
once you determine how much
money you can contribute towards
long and short-term savings
every month. This will allow you
be to consistent with your
saving contributions. By putting
away $200/month earning 5%
interest can earn you around
$15,000 in five years.
Abusing debit cards
Debit cards give people the false
sense of free-spending. Allocate
a set amount of cash for
purchases during the month, or
week. Utilizing a firm cash-only
plan will put your spending
behaviors in perspective. It
will also help you avoid making
the mistake of impulse shopping.
Paying only the minimums on
your credit cards
Carrying a credit card
balance is like throwing money
into the wind. Making only the
minimum payments will result you
in paying thousands of dollars
in interest fees, taking you
years to pay off your balance.
This money can be used for
contributions towards savings.
Pay off your balances as soon
you can by sending as much money
to your credit card issuers
every month. Use the
credit card calculator to
see how long it will take and
how much it will cost when
paying only the minimum on your
credit cards. Get more info on
eliminating credit card debt.
Not having any money put aside
for
unanticipated emergencies
If you have no money saved
for emergency situations, you
are risking the chance of
financial ruin if you ever get
sick or hurt and can not work,
or if you lose your job. A rule
of thumb is to save 3 - 6 months
worth of living expenses in a
high interest savings account.
Individuals that are
self-employed or work in an
industry with a high turnover
rate should look to have a
year's worth saved.
Spending more money than you
bring home
The number one rule of
budgeting is living within your
means. Unfortunately, this is
easier said than done. The best
way to learn to live with less
is to change your idea about
spending. Learning how to avoid
buying on impulse is the most
important aspect you can change.
Also, do things like
going on vacation unless you
have the money in the bank. If
you take a holiday, learn what
you can do to
avoid vacation debt.
Related Reading:
-Dealing with a Financial Emergency
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