| |
| |
|
Personal Finance Information |
|
|
|
Know Thy Finances
The first step to financial success lies in knowing your financial situation at any given time. There is an anecdote attributed to John D. Rockefeller--that as a child he was given a monthly allowance from his parents, but upon stipulation that he had to save 10% of it, give away 10% to charity, and account for the rest of it. While his parents required that he record down to the penny where he spent it--you can be a bit more lenient on yourself! Track your spending for 1-2 full months Use a program like Quicken to keep track of all your personal finances. I recommend the latest version of Quicken or a similar financial program if you already own one. You should start out by entering in your present-day personal checking account, savings, investments, and cash situation. To complete this step, you will also need a cheap plastic filing container or something similar. You can purchase these for about $15 at Office Depot, etc. As you make payments, keep track of all the receipts you receive, the checks you write, and any other monetary transactions you make. Like I mentioned earlier, you don't need to be exact when it comes to cash--just try to be, as much as you can tolerate. At some later time, at your leisure, enter all this transaction data into Quicken. As you do so, put the purchasing receipts into the file folder under the appropriate Category. Make separate labels for each of the file folders-- I suggest some of the following: You can also add your own categories or remove some as appropriate. At this point, you may be wondering why you have to do all this. For the moment, just trust me that it will be beneficial to you (I will explain it later on). Also, it takes a grand total of about 10-15 minutes per week to do what I just described. The next section, Budgeting, will take a little longer. But budgeting also requires that you need to at least perform the first step mentioned above, that is, keeping track of what you currently spend. Planning your Budget I can already hear what you are going to say--oh no, not a budget! I don't like them either, because they tend to reign in my emotional spending or "I gotta have it" mentality. The truth is, you are the master of your financial destiny (not to sound corny, but its true for the most part). If you want to buy that fancy knickknack with the wireless PDA attachment downloader, then by all means, get it. But if it doesn't serve your needs in the long run, then you will have wasted $X dollars to serve your fleeting emotional desires. Besides, you will notice after tracking your budget for several months where the real money is flowing. You might buy a fancy computer toy only occasionally, at $200+ dollars, but eating out at lunch everyday + dinner with the girlfriend at fancy restaurants all the time is leaving you broke. How about going to bars? I like to drink, but a beer at a bar or nightclub can range from $4-$10. It's probably even more if you live in areas like San Francisco or New York. Anyway, the point of planning your budget is just to get a better grasp on directing the flow of your money. I'm not saying that you should totally change your lifestyle or even change it at all--but if you are complaining about not having enough then there are certain things you should do, mainly spend less. It will be described later the benefits of saving & investing your money (which you probably already know anecdotally, but perhaps do not have extensive experience personally). Good Luck! About The Author Shanti Braford Editor/Publisher The Long-Term Value Letter
MORE RESOURCES:
Personal-Finance - Google News |
|
|
|
RELATED ARTICLES
Why Live Frugally What is it about being frugal, why do it at all? Actually, some people don't do it at all, they have decided that what they want and desire is what they are going to get and they feel they deserve it. I have no trouble with that; more power to ya, live long and prosper and may you die with the most toys. Check Facts and Figures Are you a check fanatic? Don't worry, you aren't alone. Millions of consumers write checks every year. Car Donations and Used Car Donations Car donations and used car donations are the way many people choose to recycle their older model cars without having the headache of repairing, advertising, showing, and hopefully then selling them. Being able to get rid of an older car and at the same time gaining the benefits of charitable giving and a tax deduction are all part of the allure of used car donations. Take Control and Master Your Kitchen Those who keep a watchful eye on where their money is spent, have long conquered the kitchen woes. No last minute panic trips to the market. What is a Traditional IRA? With a traditional Investment Retirement Account (IRA) you pay taxes when you take the money out at retirement in the future. Make sure that this account is really worth opening in your situation because what you put in the account today may be fully deductible, partially deductible or non deductible, depending upon your income and other retirement coverage. Succession Planning Have you ever thought about what you are going to leave your children when you pass from this earth? Wouldn't it be a great feeling to be able to give them a really good head start in life - without actually spoiling them?It really doesn't matter how old you are, it's something that you need to be thinking about and planning for now. In the process of planning your inheritance and blessing your children, you are really making YOUR life better and more financially secure because you'll enjoy these benefits before you pass them on. Understanding and Controlling Your Finances Have you ever wondered what it would be like to be able to have complete control over your finances?If you are like most normal people, you have a job. You go to your job every day. How to Draw a Personal Budget that Works Many people spend their little income haphazardly without any planning and end up getting broke before month-end. They then borrow to make ends meet and end up with more problems that they fail to repay their debts promptly. Whats The Truth Behind Your Finances? Between 15 - 20% of people in our country (UK) own there own businesses. This statistic is on the rise thanks to the incredible invention of the Internet. How to Attain Your Dreams on a Single Income If you recently became a single parent and see your dreams being washed away because you feel all alone, you aren't alone. There are single parents that face future endeavors alone like dating again, living on one income, and buying the home they've always imagined. Creating A Household Budget Creating a budget can be a very difficult task. Although we as consumers know that we need to pay our bills, buy our necessities, and put money away for savings, we don't really know how to start. 5 Steps to Healthy Spending Habits Next to our physical health most of us are primarily concerned with our financial health, and with good reason. Although our intentions are usually great our follow-through and discipline generally isn't. Reporting Identity Theft Would you know what to do if you suspect that your personal information had been stolen and used by thieves to open new accounts? It's important that you take the right actions to clear your name as quickly as possible.In 2005, the laws were changed to allow anyone to review their credit report yearly without having to pay a fee. How Electronic Checks Work - Will Paper Checks Eventually Go Away? Traditional checks probably won't disappear anytime soon, but processing checks electronically is sure to continue! Have you ever been asked to fill out your account and routing number when paying for something online or over the phone - or have you provided a paper check to pay for something and it is given back to you after it is run through a machine? Did you scratch your head like I did the first time that happened?Here is how electronic check conversion works. Instead of writing out a check the old-fashioned way, the new way of using checks use digital signatures for signing and endorsing and have digital certificates to authenticate the bank account. How To Free-Up 10% to 15% of Your Income Would you be interested in freeing up 10% to 15% of your current income? Just imagine what you could do with this money. You could pay down your debts, increase your savings, or work toward that next important purchase that you have in mind. Improving Your Financial Position If you want money you need to learn how to control it. You need to improve your financial education and build your discipline. Know Thy Finances The first step to financial success lies in knowing your financial situation at any given time. There is an anecdote attributed to John D. 10 Steps To Improve Your Financial Situation Here are ten steps you can follow to help improve your personal financial situation and inevitably save more money:1. Pay Yourself WeeklyThis may seem a bit odd, but this is an excellent way to start building a substantial savings. Can You Afford Not To Look After Your Personal Finances? Investing is a subject a lot of people don't want to think about. And there is good reason for that. The World is Not Enough - Calling for a More Ethical Approach to Personal Finance At a time when the entire world's attention is focused on the problems of world debt, with the Live 8 concerts, the G8 summit in Scotland, the Make Poverty History Campaign (MPH) and the various anti-poverty marches, it seems that everyone wants the world's governments to behave more ethically towards the manner in which international finance is conducted. This is obviously a laudable attitude to take, and has gained immense momentum with such a groundswell of public opinion that even the UK Chancellor, Gordon Brown, has stated he is planning to participate in the Make Poverty History demonstration in Edinburgh during the G8 summit.
|
| Good Credit Loans | home | site map | School Bus Clothing | Florida Pool Heating |
| © 2006 |
