A personal budget can help get a handle on those small leaks in your bank account. Those little things that sneak up on you. But a budget can also help with long term goals. It can help make sure you stay on track with your saving for college or even a down payment on a home.

If you start tracking and planning with a personal budget you’ll find lots of places to cut expenses and be able to plan for the bigger things that really matter.

The damage caused by impulse buying could put a burden on more than just your finances. Your personal relationships could suffer as well. Being able to overcome impulse purchases you’ll need to be able to separate your wants from what you really need…all in the heat of the moment. This is easier said than done.

As consumers we are constantly being bombarded by marketers. You don’t have to look long to find some version of advertising around every corner. Advertisers love impulse buyers. In fact, they highly encourage it.

Here are some tips to avoid falling into the impulse spending trap:

• Try a cooling-off period. If you didn’t specifically plan and budget for the purchase, give yourself a time frame to decide if it’s really necessary.
• Tell high pressured sales people that you have a waiting period on all purchases. They will always have a “must act quickly” proposition, but stand your ground.
• Make a shopping list before heading to the store and stick to the list.
• Bring only enough money to buy what you have on the list. Leave everything else at home.

Impulse buying can really put a dent in your budgeting plan and prevent you from reaching your longer term goals. Don’t let unimportant purchases derail your dreams.

1. Budgeting – You need to examine your actual cash flow. This means writing down every penny of incoming cash and every penny of out-going cash. You also need to include extra in the out-going cash to cover expenses that you didn’t know about – extra activities fees for kids, surprise medical bill etc.
2. Income protection – Set up a plan to protect your income for short and long term including disability funds, unemployment funds, and long-term care.
3. Emergency funds – start with a goal of having $1,000 set aside and then work up to having enough money set aside for up to 6 to 12 months.
4. Debt elimination strategies - Start a ‘debt acceleration’ plan. Find the money that you are spending unnecessarily (dinner out, entertainment) and apply it toward your debts to pay them off faster. Convert high-interest debt to low-interest debt to pay off debts more quickly.
5. Saving and investing – After you have paid much of your debt off, start learning how you can use that money to save and invest for your retirement.

Not having a budget and slowing (or quickly) adding debt will eat at you over time. It gives you a feeling of helplessness and feeling like you’re out of control. As your debt and feelings of helplessness are building, so is that stress. You are slowly causing yourself health problems and more than likely, relationship problems. Now that you know the five basic steps to personal budget planning, use them to prevent problems from happening in your life.

Debra Proctor is the owner of http://www.Debt-Relief-Advice.info, an informative site with articles to answer your most asked questions about getting out of debt.

Article Source: http://EzineArticles.com/?expert=Debra_Proctor

A frequent topic of discussion among baby boomers is whether to save for retirement or pay for their kids’ college education.

You worked hard to raise your kids. You made sure that they had the right clothes, the cool shoes, and all the other “chachkas” they needed to fit in. You hope you did all the right things. Now, as your kids prepare to head off to college, you find yourself looking at anywhere from $20,000 to $45,000 a year (per kid) for tuition, room and board. Do you cash out your 401K to pay for their college? Or do you ask them to take out a loan?Part of the problem has to do with the fact that many Americans have negative savings. Not only did they fail to plan for their retirement, they also didn’t put away money for their children’s college, and they have no little or no personal savings. Another part has to do with the escalating cost of higher education.

It used to be that only those who went on to years of graduate school ended up with hefty student loans to pay off. However, it is not uncommon for today’s kids to graduate from college with a bachelor’s degree and a hundred thousand dollars of debt. This debt sits like a huge anchor on our children as they struggle to make the transition to fully independent adults.

For example, young adults in a serious relationship or engaged to be married must now consider how they will pay for their combined astronomical debt. And couples that have already married face a similar dilemma — if only one partner has a loan, should they be paying off that bill together?

There are no right or wrong answers for these issues, and every family has a different set of circumstances. However, the decisions you make will have far-reaching consequences for your lives and the lives of your children.

Think “In-State”

By no means do I claim to be an expert in this area, but my husband and I have embarked on a strategy that seems to be working well for our children and us.

Having four kids puts a real burden on any family’s finances. Having those kids very close in age is a recipe for financial disaster. As young parents, we couldn’t afford to save money for our kids’ college education, so we gambled on the idea that maybe two out of them would earn a scholarship of some sort.

By 8th grade, however, it became painfully evident that the scholarship strategy was not likely to pan out. Our kids were all loveable and smart, yet none had the innate drive, determination or IQ to attend Harvard or even a state college on a scholarship. As a result, we had to make some tough choices, and make them relatively quickly.

After studying our lifestyle and finances, we determined that with some sacrifices on our part and some help from our kids, we could put them through college without them having to obtain huge loans and mortgage their future. However, this required adopting some fairly stringent rules in regards to where they could attend college.

We started by explaining to our children that who they wanted to be and what they wanted to study was their choice. However, since mom and dad would be paying for the college education, the choice of school was ours.

Based on this rule, out-of-state schools were out of the question. We saw no reason to pay $30K a year more so our children could ski the Colorado Mountains. State schools in California were widely available and much more affordable.

Another option was to graduate high school at age 16 by taking a proficiency test and attend community college for two years. This would save at least $20K a year in tuition (even at a state school), and give them the ability to easily transfer to any state university of their choice. If they got accepted at a good university right after high school, we would have no problem paying the bill. Otherwise, it made more sense to attend community college for two years and then transfer rather than attend a mediocre college right out of high school.

Responsible Choices

The results are as follows.

Our oldest daughter applied and was accepted to UC Irvine right out of high school. She lived on campus for the first year and commuted the second year. For her third year, she transferred to UC San Diego, and will be a junior next year in her hometown. Our middle daughter, who recently turned 18, took the proficiency test at 16, completed her AA in a community college, and received an acceptance letter from all of the schools she applied to.

The fact is, in-state schools cost half as much as out-of-state. If you can’t afford the higher tuition and extra room, board and travel expenses, it is prudent to encourage your child to apply to a school nearby. Unless money isn’t an issue, it doesn’t make sense to send your kids out of state just because their friends are going along for the ride. Plus, the transition will be less stressful on their bodies and souls.

The moral of the story?

Our job is to raise responsible adults and show them how to live their lives to the fullest while being practical at the same time. While our children’s education is extremely important, attending their party school of choice is not. If your financial situation doesn’t allow you to put your kids through school, help them make the right choices by choosing affordable yet credible schools while borrowing as little money as possible. Help them make responsible choices so they don’t begin their journey into adulthood burdened with a mountain of debt.

And while we’re at it, let’s all do a better job of planning for our retirement. After all, we want to be an asset and not a liability to our kids.

For my husband and I, it’s two down and two to go. Good luck with your own children!

About The Author
Yana Berlin is the founder and CEO of www.fabulously40.com, devoted to the celebration of all things, primarily women and the challenges and joys they face juggling their careers, children, relationships, and life’s other issues. Fabulously 40.com is a social network for women that catalyzes its members to celebrate and embrace their life. Since launching www.fabulously40.com. Join us as we embark on our journey to the best times of our lives at www.fabulously40.com.

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A grocery shopping list can be the front line tool you use in saving money on your grocery budget each month.

There are several more sophisticated ways to save grocery money, but none is easier or faster to implement than the lowly grocery shopping list.Interestingly, this is a tool that almost everyone knows about, yet very few people actually use it in a systematic and reliable way.

For those folks who are not convinced of a grocery list’s potential power in household management, here’s what happens when you DON’T use one.

– You lose money.

Without a grocery shopping list, a shopper is at the mercy of “what looks good” in a grocery store.

Believe me, if you shop this way, you WILL find something that looks irresistible. And costs more than you might have spent with a list.

Why? Simple. It is the grocery stores’ job to entice you to spend money in their stores. That’s how they stay in business. There’s no problem with that. But it’s YOUR business to get the best value for your money…unless you don’t care how much you spend on your groceries each month.

In which case you probably wouldn’t be reading an article like this one.

– You lose time.

Using a grocery shopping list means you can enter your favorite grocery store, fly up and down the aisles one time, and be ready to check out in the fraction of time of another shopper who uses the ‘browse’ method of grocery shopping.

And if you’re under the mistaken impression that you’ll need to spend lots of upfront time figuring out what to put on your grocery list, well, you don’t.

Hang your grocery list in a prominent place in your kitchen and train your family to use it. Then your list will be ready to go shopping when you are.

– You lose nutrition.

Using a grocery shopping list means you get EXACTLY what you want at the store; and that includes the nutrition you want for your family. You call the shots on how much fat, salt and sugar your family consumes. You can decide to emphasize whole grains and whether raw vegetables, frozen or canned will grace your family’s dinner table.

In short, with a grocery list, you are in control.

– You lose efficiency.

Ever stand in your grocery store and think to yourself, “well, I know I need some frozen veggies (or broth, or canned fruits, or favorite mixes, etc.) to keep on hand for that easy throw-together recipe my family likes. But I can’t remember what I already have at home. I’ll just get a couple of bags of SOMETHING to keep on hand.”

Fast forward to the night you want to actually COOK that wonderful food for your family. You discover you’ve got two bags of frozen broccoli and three bags of frozen stir-fry veggies, but what you NEED is a bag of frozen corn.

A grocery shopping list could have helped you bring home the corn. Without the extra stir-fry. Using a grocery list means you have what you actually need in your pantry when you need it. Plus, you’ll end up with less throw-away food, too, since you’re purchasing what you know your family will eat within a given period of time.

Bottom line, if you’re serious about saving money at the grocery store, the first thing you’ll want to use is a grocery shopping list. It’s easy and you can start using one today. (For a free printable grocery shopping list, see the author’s resource box at the end of this article.)

Whether you’re a college student learning how to grocery shop for the first time, a newly married couple establishing a budget, or a mom whose family has grown and the grocery budget has developed a mind of its own, the place to start to regain control is the lowly grocery shopping list.

About The Author
Colleen Langenfeld has been parenting for over 26 years and helps other moms enjoy mothering more at http://www.paintedgold.com. Get your free printable grocery shopping list at http://www.paintedgold.com/Organize/grocery-shopping-list.html.

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The basic idea is simple. A budget just compares the income you have each week or each month with the things that you have to purchase.
Right, first you need to work out your total monthly income. Include your income from all sources. This means wages, regular overtime, bonuses, any benefits you claim etc. The figures you use must be after tax, so count your take home pay instead of your gross pay. If your income varies, it’s advisable to work out how much income you’ll have at the start of each month.

Have you done that? Write the figure down.

In [month] my income will be……….

Now we’re rolling! This figure is all you’ll have to live on for the next month, and take a chunk out of your debts.

Vital Expenses

Right, vital expenses first. And when I say vital, I mean VITAL. So that includes keeping a roof over your head (rent, mortgage, property tax, electric, gas etc) and putting food on the table. In other words, things that will endanger your life if you don’t have them!

A few months down the line, this will show you how much money you’ve spent on various items (such as food, rent, mortgage, household bills), and allow you to identify the areas where you can cut back.

Debt Repayments

The next item to deduct is the minimum payment that will be required on your debts for the month. This is the amount that’s required to stop them sending you any nasty letters. This could include your mortgage payment, the minimum amount required on any credit or storecards, the regular monthly instalment of any personal loans, car loans or student loans and the amount your overdraft needs to keep your bank manager happy.

These two figures (vital living expenses plus minimum debt repayments) will show you how much you need to spend each month just to survive and keep your head above your sea of debt.

Now what’s left? This will show you whether or not you’ve overspent each month.

If there’s nothing left after these basic costs, then you position is much more difficult. All I can suggest you do is to look at how to increase your income, or get some professional advice on how to deal with your debts.

If you have anything left, this means that you’ll survive financially, for the next month at least. Put every single cent that you have left over towards reducing your debts. If you spend less than you earn every month, then you will eventually pull yourself out of debt.

The further you strip back your spending, the faster your debts will shrink and the less they’ll ultimately cost you.

Here’s a little tip to help you keep your spending low. Take a sheet of paper and pin it up in a prominent place in your home. The back of the main door is always a good place, because you’ll see it every time you go out. The idea is to start with a blank sheet each month, and to write down every amount that you spend over the course of the month. Keep a running total so that you can see at a glance how much you’ve spent every month.

At the start of the month, you could fill in the figures that you know in advance, such as your rent, minimum debt repayments, council tax, etc. Then the rest of your vital living expenses can be filled in as and when you spend the money.

Every time you spend something, add it to your running total for that month when you return home. Then every month try to spend less than the month before. Make it into a game. See how little you can spend each month. Restrict your spending to things that are absolutely necessary.

At the end of the month, the difference between your income for that month and the total amount that you have spent is the extra amount that you can put towards reducing your debts.

It’s also a good idea to keep a running total of the amount that you owe pinned to your door. Update the total at the end of each month after you’ve paid your remaining monthly income towards the debt. This will give you a visible reminder of what you’ve achieved and when you still have to do.

Seeing your total debt getting smaller and smaller as the months pass should give you that extra burst of motivation to keep going.

About the Author: Stuart runs a website dedicated to helping people get out of debt. So if you want to improve your financial position, visit http://www.icanhelpyougetoutofdebt.com for free, impartial information on how to eliminate your debts.

Source: www.isnare.com

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If you’re thinking of great ideas to spend time with your children, why don’t you teach them how to better appreciate money. With the crisis going on around us, there is no better time to show our young ones how to become better consumers and so we don’t necessarily lose financially when it comes to our everyday purchases.So for example, you can teach your child that he or she can save a portion of his or her allowance for a couple of days or weeks. You have to point out that saving even just a little bit is something that can benefit him or her in the future. It lets your kids buy bigger things that they probably wanted you to get for them.

Teaching your children how to value is also a great way for them learn all about the things that goes on whenever somebody makes a purchase and how all these things are related to our economy. Of course, I don’t expect you to dive down into in-depth discussions about the economic agenda of the government, but just enough to make your child realize that we have to be more responsible in handling money.

If you’re more of a hands-on parent, you can let your kids get involved in making family decisions by letting them participate in the planning out a family budget. You can also teach them how to budget their own allowance so they will always have just enough prepared whenever they need it.

Another way to teach children about money is by showing them how money is earned. You can assign chores and pay them for their services. Or you can teach them to join you in Kentucky crafting trade fairs and festivals where they can join in and let their own hobbies earn them a little money for themselves.

There is no better time to teach our children responsible handling of money and we could all benefit better if we are helping shape responsible adults for our nation’s future.

Alix Montoya has been writing about Kentucky craft fairs for a long time. You can find out the latest news on fairs in KY and join in on the crafting fun.

Article Source: Kids Can Learn How To Budget, Too!

For most households the monthly budget works something like this; every month money comes in and every month all the money goes out. Is this how it works around your house? Do you know where all your money goes? Unless you have control of where your money goes and how it works for you your future financial well being is on shaky ground.

If this is you then you seriously need to think about creating a household budget because your money needs a plan to follow. Just about everything you do in life revolves around a plan of some sort. Most jobs require some sort of plan it you want to be efficient and profitable. Successful businesses follow not only a business plan but they also have a budget which allows them to be productive and profitable. Look at it this way, if you ran the finances of a business the same way you run your household finances how long would your business last?

If you don’t like the word budget because it sounds too restrictive then consider creating a cash-flow plan. Whatever you wish to call it your money needs a plan to follow, unless of course you like living paycheck to paycheck.

Do you have financial goals? Are you doing anything to reach them? Are there things you would like to do but don’t really have any idea how you can do them because you don’t have the money? Here’s an idea. Write down what your goals are, where you would like to be financially in 5 years, 10 years, when you retire. Now off the top of your head think about what is standing in the way of your goals. Chances are you’re not completely clear as to what monetary obstacles stand in your way. You might have an idea but the picture is not clear.

A monthly household budget will paint a clear picture as to where you currently stand as far as your finances are concerned. You will see exactly where your money is going and this allows you to come up with a plan to take back control of your money.

Once you see where your money is going you can take the necessary steps to start working towards your financial goals. Do you have too much credit card debt? How about eating out 5 nights a week? Does that $400 plus car payment on a depreciating asset really help you meet your goals? These are just some of the question you’ll start to ask when all your monthly expenses are laid out in front of you.

The first time you write out your monthly household budget, or cash-flow plan, it probably won’t be real pretty. The important thing is you have taken the first step to taking back control of how your money works for you. Once you do that you can start building a strong financial future.

If you seriously want to take back control of your money you need to build a Monthly Household Budget. To Learn more about creating a budget please visit the website Household Budgets by clicking here.

Article Source: A Monthly Household Budget is The Cornerstone of Your Financial Future