Myths & Common Misperceptions about Budgeting

Proper financial planning
is the key to avoiding living from paycheck to paycheck. We are living in trying times, which greater emphasizes the importance of budgeting your money. In order for our economy to come out of the recession before it gets to deep and long, we must start with the individual. By instilling proper financial planning principles into the masses people will start realizing how and what people can do with their money. I see people all the time living from paycheck to paycheck often needing advances because they do not know how to manage their money.

A very easy and efficient tool to learn and use is budgeting. Budgeting is ultimately a plan that allows you to allocate your funds anyway you wish. Budgeting allows you to tackle your goals from a financial perspective through awareness. In determining your budget you are deciding how much money goes where so that you can chalk up the rest to savings. Budgeting may get a bad rap for many people perceive being on a budget as being on a financial diet. However this is not true for your budget is customized to the way that you see fit.There are some common myths and misperceptions about budgeting that are ultimately false and I want to take the time to clear up the air. Setting a budget means that you have is constantly sacrificing. This statement is only as true as people let it be, for every single budget is customized. Therefore a person who is trying to save up for something in a small amount of time, then yes some sacrifice will be involved.

However most budgets are put in place to ensure that people are allocating their funds correctly and responsibly. If there is no financial plan that exists people will be much more susceptible to participate in impulse purchasing. A common myth about budgeting is that it takes up too much time. Proper budgeting methods are not overly complicated or intricate that a 10 year old could compose one. Also, frankly people do not have time to not participate in budgeting.

The way that you spend your money decides a lot about the type of life you are living therefore budgeting should be high on your priority list. You will be able to determine significant cost savings by just laying out your expenses versus your revenues. Things that seemed important in the short term now do no look as important.Another misperception about budgeting is that it can cause a rift in your family. Living on a budget is not a new concept, and maybe at first your family might need some time to get used to it but overtime it will seem normal. A good way to deal with this is determine a budget on a family basis saving up for something fun for the whole family. Getting the family to bond together to achieve a common goal will not only save you money, but it will place importance on what really matters most.

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Jeff Nelson gives advice on money management. His advice helps you to eliminate your debt faster. To make online Budgeting easy and set up your budgets for each category you are targeting, visit www.mint.com
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A plan for a debt free life

A Plan For A Debt Free Life

By: Geoff Hibbert

Find out how to eliminate debt and rebuild your credit today. Eliminate debt, paying far less per month then you are right now. The simple debt free living plan consists of three main parts a simple plan to eliminate debt, household budget planning, frugal Living and money saving tips.

Getting debt free is a tough decision. To eliminate debt is difficult, and with this tough decision comes sacrifice, and lots of it.

Would you be surprised if I told you that right now professional debt elimination advisors are helping hundreds of thousands people eliminate debt and find freedom in their lives. They're eliminating debt and helping ordinary people eliminate their debt and own their homes, forever and in peace. There is a process to follow to eliminate debt all by oneself and it is not easy without support. If the organization and the self-discipline are there though anything is possible. Employ the services of a qualified debt management advisor and you will stand an even higher chance of success.

Credit counselling with the help of a good debt management advisor can lead you eventually to debt free living. Many credit counselling services are non-profit and funded in-part by the creditors themselves, remember that if they are being funded by creditors then there is bound to be an amount of split loyalty, make sure that you also investigate the paid for services.

Credit counsellors who provide debt management services within a professional organisation are experienced, understanding, non judgemental and leaders in the credit counselling industry. Credit counselling and the peace of mind that it brings will help you take back control of your life. Creditors are happy and you sleep reasonably well at night.

Creditors and collectors prefer to deal with the person who owes the debt as they feel they can bully you into paying very easily. As opposed to dealing with a debt management company, who will fight on your behalf for lower payments and frozen interest charges. It is in your interest not to let the creditors have all of their own way.

Credit card companies will generally grant an interest rate reduction as long as you have a good credit counselling or debt management company fighting your corner and have shown financial willingness to pay. Credit cards interest rates vary somewhat but you can be guaranteed they will be high with many fees attached if you are undisciplined and do not make your payments in time or only pay the minimums. Credit cards are probably the most effective piece of credit for a debt management company to handle for you.

Once your debt management company has set up your scheme they will deal with all of the correspondence from your creditors for you and after a short period of adjustment your creditors will start to call your debt management advisor rather than you for reports on your case. This therefore gives you again the peace of mind and stress free days so that you can get on with the business of earning money, repaying your debts on your terms and most importantly focusing in on your goal of a debt free life.

Author Resource:-> Geoff Hibbert provides tailored debt management solutions and credit repair services through his websites http://www.thedebtmanagementcompany.co.uk

and http://www.creditrepairuk.co.uk

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Quiz- Is Your Debt Causing Depression?

Are you feeling hopeless about the future? Are you feeling hopeless and helpless about your current situation? Are you feeling depressed? Do you find no way to come out of this hopelessness? It is time to consult a Doctor about your depression.

Can your depression be related to your debts? Are you also having debts to repay? Debts can cause constant worry and make us feel depressed. Especially when we have no ready plan to repay our debt, the depression can be severe.

What are you planning about your debt? Have you planned any repayment schedule? Have you planned any method to increase your income? If not, please begin doing that. Let us look at this problem in totality. You have a certain income. You have a certain debt. You have certain expenses. You have to save money from your income and repay small amount every month so that one-day you are out of it. The first step is to write down all these figures. Then think of every method that can increase your income. Similarly try to reduce your expenses. This will obviously give you more money to repay. Now talk to your creditors. Ask them for rescheduling the debt so that is comfortable for you to repay. Approach them positively and explain the position. Be optimistic. They will agree.Feeling hopeless never solves the problem. Finding solution will do that. Fight your debt related depression with proper strategy and planning.

About the Author
The author C.D.Mohatta writes fun quizzes and fun tests on topics like love, personality, dating, relationships, friendship, movies, tv, music, business, etc. The author also writes for free ecards and greetings on holidays, birthday, love, friendship, family, expressions, celebrations and all events and occasions. One more site associated with the author has free sports games which surfers can play online. Source: ArticleTrader.com

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Five Tips for Shopping on a Budget

Sticking to a budget is hard enough, but malls, outlets and grocery stores don't make it any easier; with countless promotions, sales, and strategically-placed impulse-buy items, it's easy to get sidetracked and overspend. Willpower and discipline are great tools to combat overspending, but many people find it hard to maintain them when faced with a great sale. Never fear, there are a few simple tricks and tips you can use to help keep you on track and overcome the temptation to overspend.

1.Always take a list.
While seemingly simple, and even obvious, this is a great way to help keep spending on track. If you have a specific list of items you need, you can shop with more purpose, and avoid unnecessary browsing (which all too often leads to unnecessary buying).

2.Consolidate shopping trips.
Whenever possible, it's best to combine all your shopping into one day. This is a great way to make sure you don't spend extra time in a given store, browsing unnecessarily, or getting sidetracked from your pre-set shopping agenda. Plus, consolidating your shopping into one big outing will save gas in the long run, which is always a good thing, both for your budget, and for the environment.

3.Clip coupons.
Check your weekly paper for circulars and coupons. Be sure to have your list ready when you do this, to avoid adding unnecessary items (remember, just because it's on sale doesn't mean you need it). While you may not find coupons for everything you need, you'll likely find savings somewhere. Over time, even a few dollars a week will add up big time. Look at it this way: if you save just $4 per week, you'll end up with an extra $208 each year.

4.Plan ahead; shop accordingly.
Food is arguably one of the largest costs in any family's budget. It's one that can't be skipped or compromised, and with costs of everyday items like milk rising considerably, it can be a huge drain on any spending plan. While there's no realistic way around this need, there are ways to help maximize your spending. Planning meals a week in advance can help you make the most of your purchases; simply plan consecutive meals that use the same primary ingredients. Buy those ingredients in bulk to save even more. And always, always save (and use) leftovers.

5.Reward yourself.
Regardless of the best intentions, it's easy to get sucked in to unnecessary spending; it's practically human nature. An unexpected sale at your favorite store, a discount on an item you don't need, but have wanted for some time. You can curb overspending by operating on a rewards system. Set goals for yourself, like limiting spending to a certain amount, and make room in your budget for a special treat or reward when you reach your goal. If you don't achieve the goal, leave the reward money in place and try again for next month. Having something special to look forward to will make it easier to exercise self-control and avoid splurging on items you don't really need, or even particularly want.

About the Author
Ki is a real estate broker in Austin Texas. He site offers a graphical search for Austin homes. He also provides general information on Austin real estate and updated graphics on mortgage interest rates.

Holiday Shopping on a Budget

Submitted by dane

The holiday season is a time for friends, family, togetherness and fun. It's easy to get carried away when stocking up for the holidays from gifts, to food, to party favors and decorations, there are a seemingly endless array of ways to spend money in the name of the holiday season. In fact, the holiday season is the peak time of year for debt accumulation. While everyone wants to enjoy themselves during the holidays, and to show their loved ones how much they care, overspending is not the only (or even the best) way to accomplish these goals. Instead of building up outrageous debt, plan ahead and discipline yourself, in order to get through the holiday season on a reasonable budget.

One of the largest areas of overspending during the holidays is, of course, on gifts. The number one reason many people find themselves in debt after the holidays is not necessarily because they make purchases they can't afford, but because they make all their purchases at once. Instead of consolidating your shopping to the overly-hectic holiday season, plan ahead and start accumulating gifts throughout the year. The end of summer and back to school seasons are great for sales, and you'll likely find better deals for a lot of the items on your list. Similarly, though more long-term, hitting after-Christmas sales is an extremely cost-effective way to get great gifts without breaking the bank. Another option for gifts, particularly video games and other high-priced items, is to check out online auction sites like e-Bay.
But buyer beware: always read the full item description carefully, and don't be afraid to ask the seller questions about the items condition. Return policies vary from seller to seller, but they are obligated to give you honest, accurate information before you buy.

Another big area of overspending during the holiday season is on decorations and general ambiance a tree, ornaments, candles, lights, displays, table runners, tree skirts you name it and you can find it in a Christmas theme (and often at a significant mark up). The best way to avoid the temptation of going out and buying new decor every year, is to establish a sentimental value for these kinds of items. Have your children use finger paint to make the tree skirt, work together as a family to make everyone's stockings, and save all the ornaments you've accumulated over the years.
By creating and holding on to decorations that mean something special to your family, you'll create your own tradition, and save big on buying new items that don't mean anything to you.

And when you do need to pick up new decor items, take advantage of the deeply discounted post-holiday sales. Not only are these great resources for decor items, they're also ideal for stocking up on other holiday necessities like wrapping paper, greeting cards, bows, ribbons, stockings, and most any other holiday-themed item you can imagine. And best of all, you'll find them at clearance prices. With a little planning, creativity, and resourcefulness, you can have your fruit cake and eat it, too.