Personal Blog of Forest Marie

There’s no doubt about it. Money is something that runs our lives. Whether we like it or not, money is a vital piece to our lives. If we do not have any money, we struggle; if we have an abundance of it, we can live our lives vicariously. That’s how I like to you. How about you?

Of course, if you’re in that money bind, you’re probably not living life vicariously, which is unfortunate. But there is some hope and a some solid money management tips you can apply in your life to avoid the bind.

Tip # 1 – Pay Yourself First!

This is one where most people struggle. Instead of paying themselves first, most people pay off bills and spend it on the expenses of life. My advice to you is STOP that and get a savings account (yes, I know the interest rate are horrible) and start depositing a certain % of a percentage on every check you ever get in there. If you have to start with 1% or .5% or .1%, DO IT ANYWAY.

Develop the habit NOW, NOT later. I hear so many people say “when I get money I’ll save and invest more.” This is a silly chicken and the egg argument. Get over it and, again, develop the habit NOW … NOT later.

And by the way, it’s the habit here that’s most important, not the amount of money you make from that tiny interest rates in a savings account. Over time, you’ll get you a nice emergency fund set up and then you can start investing more aggressively on a consistent basis in business, real estate, the stock market, etc.

But you must master the habit first: habits + time = results!

Tip # 2 – Pay Those Dreaded Bills On Time!

The first bill you pay late will lead to the next bill, which in turn leads to the next bill. It’s a vicious cycle that will kick your ass if you let it. It is easier than you might expect to get so far behind that you have nothing to do but curl into a ball and bite your nails. Do whatever you can to pay these bills on time. Don’t get to the point where you start throwing bills in the corner of your desk hoping they’ll just magically disappear.

Of course if you figure out how to do that, don’t forget to contact me!

Tip 3 – Read Your Bank Statements Regularly! (Boring, Right?)

Unfortunately, there are times when people will make charges onto your account without you realizing it. Identity fraud is something we have to be familiar with in our society. In addition to unknown charges, it will also help you become familiar with what you are making purchases of. This can help you cut back on anything that is hurting your account.

Outside of identity charges, you have these real clever waitresses and waiters who will add an extra dollar, maybe two, to their tip without you knowing. And, chances are, you probably will NOT find out unless you check your statements regularly. I’ve busted quite a few of them myself, and it makes for a fun experience when I deliver the call to the owner of the establishment.

Free food on the house anyone?

Tip 4 – Learn To Love Your Credit Report!

Part of unknown charges and paying attention to your account is checking your credit report monthly. Having good credit is essential to the finance aspect of your life. You want to keep your credit as clean as possible. But if you do have bad credit, you will be able to work towards repairing it before it is too late if you check your credit report monthly.

Check out http://www.equifax.com to learn more.

Tip 5 – Shop Around For The Best Insurance Rates And Coverage!

Insurance is not always cheap and it’s not attractive to buy, but you have to have it for the most part. If you take the time to actually research, you will be amazed at how much insurance companies vary from one another. I recently changed my automobile insurance and saved $30 a month. Hey, that’s not anything spectacular by itself, but it’s just one of those habits that add up when you do a lot of them.

Remember, habits + time = results!

Tip 6 – Live On A Budget!

This does not mean live cheaply. It just means your game plan is bulletproof and shows a lot of discipline on your part. One of the worst things people can do is spend money whenever they want without knowing where it is going. Having a monthly budget will allow you to better manage your money and avoid falling into money problems.

So start budgeting! And, you can check out 5 steps to effective personal budgeting to help you with this.

Financial Intelligence education, finance, money

Making money is one thing, but if you are not careful with your money you will end up in trouble. And maybe fall on your ass hard. Setting up a plan to keep track of your budget can help you manage the money you are making with your business. Here are five steps to effective personal budgeting.

Basic Works Best

When first starting out your budget, you want to keep it as simple as possible. Creating a complex budget will only deter you from wanting to pursue it. Start by putting together a basic list of your monthly income and expenses. Stick to the easily identifiable expenses such as rent, car insurance, and utilities.

Monthly Income

In order to be effective with your personal budgeting, you have to be exact with your monthly income. You want to make sure you include any money you have coming in. This can be work paychecks, interest income, alimony, child support and any other money you have coming in.

Expenses

Now that you know how much money you are making, it is time to determine how much you are spending. This is certainly the troublesome part to your budgeting as you will have far more expenses than your income. What is even worse is you may even have hidden expenses you do not even realize exist. You want to group your expenses so it is easy to keep track of and organize.

Speaking of expenses, Flexo wants to know if you can eliminate $500 worth of expenses monthly?

Check this article out and see how you can cut the fat on some expenses you may not need.

Establish Estimates For Monthly Expenses

You want to establish estimates for any of the expenses that you face on a monthly basis. Things like food, gas, and utilities can be included in this. If you find one category is rather large, you can break it down into sub-categories. An example of this would be breaking utilities down to gas, electricity, water and so on.

Track Actual Expenses

The last step to effective personal budgeting is keeping track of your actual expenses incurred during the month and then grouping them into different categories. It is easy to keep track of rent and utilities, but it is the cash expenses and daily expenses that are difficult to keep track of. However, it is essential for your budget you keep track of everything possible.

Personal budgeting can do a lot for your business and your life. In order to have a hold on your money and understand what is coming and going, take the time to set up an in-depth budget to follow. This will allow you to see how much money you really have coming in and where exactly your money is going.

I’d like to note here that you can get some very useful budgeting worksheets at http://www.betterbudgeting.com/budgetformsfree.htm. The Monthly “Budgeting” Worksheet is quite useful.

So start your budget today and watch your cash flow increase over time!

Financial Intelligence Add new tag, budgeting, finance, money