Budgeting 101: Why is Your Budget Such an Important Tool?

October 11, 2017 Evan Abbott 0

Budgeting is a skill and a necessary tool for businesses and for personal finance. Without a budget, your money is going all over the place and you have no way of planning for today or the future. A budget is a very important tool for anyone and even children should understand the basics of earning, spending, and saving. So, here is why it is so important.

  1. A budget helps you plan – This is the most important aspect. If you don’t plan where your money goes, you will always stress about if there is enough or end up in debt or in trouble. A budget gives you clear parameters of what you can spend in what and how much you available. It will also help you plan for the future.
  2. A budget helps you save – Saving is important and should be part of your budget. It shouldn’t just be something that is an afterthought. It should be a permanent aspect of your budget. It is important to plan for emergencies and retirement and a budget will help you do that.
  3. A budget helps you spend wisely – With a budget you know how much you can spend. This means that you are less likely to make impulse buys or spend money recklessly. If you do these things, you know you will get into trouble with paying bills or debt.
  4. A budget keeps track of your money – You should be keeping track of what you spend when and comparing it to your budget. This will help you keep track of expenses and purchases and make sure that you stay within your means. It will also help you notice any problems like someone hacking your accounts or incorrect withdrawals.

A budget is a very handy and necessary tool. Make sure that you draw one up and stick to it. You will appreciate the control it gives you and the order your finances will have.

Saving Options: Which One is Best for You?

September 24, 2017 Evan Abbott 0

Saving is a very necessary practice and habit for anyone today. There are so many things that we need and want and half of it we can’t afford. At least, most of us can’t. To make the situation more complicated, there are different options to choose from. So, which one is best? Well, you can make use of one or all of them. It just depends on what your goals are and how much you can put in. Let’s have a look at the different options. Based on that, you should be able to decide which options are best for you.

Savings Account

A savings account is a good way to start. You have different options of savings accounts as well as how you want to save. Some accounts allow you to withdraw money at any time and others require a notice period. You can choose to deposit any amount you want or can on a monthly or weekly basis depending on how much you have available. Alternatively, you can request that the bank make a deposit on your behalf every month. You choose a set amount and they withdraw it from your main account into the savings account. This is often the best option as you then don’t have control over it and you don’t have to remember to do it manually.

Piggy Bank

The piggy bank or savings jar or whatever else you call it is another option. This is an easy savings method that can be combined with any of the others. The best way to make use of this is to put your change in the jar everyday when you get home. You can also make it a family effort and use it as a penalty jar of some sort. This way, your family will be saving money, having fun, and checking their chores.

Investments

Investments are the more complicated of the options. You need to have some knowledge about what it entails and where to start. It can be the best way to save for the future, however. If you invest smart and allow your money to grow, you will definitely reap the benefits.

There you have it. Most often, it is best to have a little of all three of these options. Choose which ones will work best for you and put them in place as soon as possible.…

Money Troubles? This is Why Your Money is Disappearing

September 18, 2017 Evan Abbott 0

Do you ever get to the end of the month and wonder where your money went? It’s just like it’s there one minute and gone the next. Well, we have some potential answers to your disappearing money. We hope that some of these will point out areas where you can spend your money a bit better and make changes to your financial habits.

Where does your money go?

Unplanned Spending

A budget should be in place for your finances. If not, you can easily be victim to unplanned and even reckless spending. Spending money on impulse buys or whims can quickly eat away at your salary. It is best to have a certain amount of money allocated to specific areas of your life. When you venture outside them and start spending money right, left, and centre, you will soon see the money disappearing. So, if you don’t have a budget, draw one up. If you do have a budget, get smarter.

Excessive Expenses

Excessive expenses are things that you can easily reduce with a change of habits or behavior. Such things can include the unwise use of water and power. There are many ways to save on power and the costs that go with it. The same goes for water use. Excessive driving that is unnecessary can make gas bills pile up. If you can, rather take the bus or train. It is very likely cheaper. You get the idea. Look for expenses like these that you can reduce.

Living Outside Your Means

This is something that many people do and don’t always realize or will reluctantly admit. Living outside your means can severely screw up your finances. Examples of this include living in a house or flat that costs more than you can afford or driving an expensive car that is both unnecessary and above your means or eating at fancy restaurants every night. All these things can be living outside your means. If you can get a cheaper mortgage or rent or cheaper car payments, you will see a big difference in your finances.

These points should help you see where things are going wrong with your finances. Analyse your spending habits and change the ones that are eating your money.…