Budgeting is about goal setting. Turning chaos into control and achieving success. Budgets are the numbers behind the goals. Failure to plan is planning to fail. Goals should be Specific, Measurable, Achievable, Realistic and have a Time frame. If you do not achieve your goal in the specific time, you have the opportunity to review, identify the problem/s, learn from the mistakes and try try again – don’t give up. Getting started – first you need information – what happened…..
You cannot manage what you cannot measure. The Income and Expense Statement shows where your money comes from (income) and where you money goes (expenses). Keep income large than expenses. Stay in control – take time to review your statement each month, compare it to last month and last year and make decisions to change if and when needed. Remember most decisions in life have a monetary impact.
The balance sheet calculates your worth by listing what you own and deducting what you owe. Keep the value of what you own (assets) higher than the value of what you owe (liabilities). To produce a Balance Sheet simple write down all the things you own which have a value to sell – include cars, houses, artwork etc. but not small items like pens, glasses, toys. Now write down all the people you owe money to. Make sure you put…..
Keeping and understanding the details of money coming in and money going out will help you make the best money decision throughout your life. Keep it simple, one page for income and one page for expenses. Rule off and total the page each month, add up the monthly amounts for a year and compare your results to other years and to other benchmarks. Keep income higher than expenses. If all this seems too hard ask for help. We don’t all…..
Banks are a business too. They are a friend not the enemy and take risks with customers every day. Get to know your bank and how they can help you before you ask for assistance. Understand the services, access, fees and rules your bank operates under and use these rules to the best of your ability. Investing in the business of banking can produce solid results.
If you understand the credit card terms you will benefit from the ease of use and loyalty programs, if you do not follow the rules you can end up paying much more for your purchase, in interest. Rules include – fees, interest rate and when it is applied, spending limits and loyalty programs. Walk to your bank to withdraw cash rather than using a cash advance on a credit card as interest is charged from the date of the withdrawal,…..
A belated Happy New Year to followers of Simple Money 4 You tips, which will be resuming on Monday 16 March with Credit Cards. Christmas is a time of spending, and credit card usage can be overdone. Ensure you pay your credit card accounts are paid in full to avoid large interest charges. The new year is also a great time to revisit you goals for the year – write them down and plan for success. Put aside some time…..
During November Helen will be visiting Gold Coast High Schools with a sample pack and presentation offer. The pack include a copy of the book – Simple Money 4 You – and a presentation that can be used for senior students. Helen is available to deliver the presentation or teachers can use it and the book to provide an introductory session to students. For more details email to Helen@simplemoney4you.com.au
Interest can be paid and received. The rate depends on the money market and product. When borrowing the interest rate will be lower if good security is offered rather than no security being offered. (eg a house is good security but credit cards do not have any security – therefore house loans have lower interest rates than credit cards.) Understand your credit rating to achieve the best interest rates. When saving longer term products usually pay higher interest rates. Know…..
It’s not what you earn but how you spend your money that will make you rich! 1. Rules to shopping – Why are you going shopping? – Can you afford the item? – Should I use the money for something else? – Do I NEED or WANT it? – Am I going to enjoy buying this item? – Is it value for money? 2. Avoid impulse spending by not going to the shops. 3. Food thrown out is money down…..
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