Be Cool! Control Your Cash!

Getting in control and staying in control of your finances is not ever going to be an easy thing, I promise. Especially in this day and age where the latest and greatest cell phone is going to cost you $500, a new laptop, nearly a good two grand and homes, cars, game systems and PDA's are a way of life. It's getting harder and harder to distinguish wants from needs.

Do you need a cell phone for instance or is it a luxury? It can be justified in so many ways. What if you get stranded by the side of the road? What if your kids need to get a hold of you while you are away? All very good and valid questions, but these do not qualify the cell phone as a need. Many, many people have survived for many, many years without a cell phone and many do even today. So chalk that up to a want.

Now I am not saying that you cannot have a cell phone or cable or a home computer or the new Nintendo Wii. But your first priority is a need list. This would include such things as clothing, food, water, electricity and gas, a vehicle and shelter. Then, once you know where your needs lie, add up their costs. What you have left over is the amount of money you have to spend on wants such as a cell phone, going out to dinner or getting your nails done.

I think you will really be surprised to find out how much money you actually spend on wants and whims. I personally was amazed to find out that if I were able to follow our budget I would have $100 each month to spend on myself and an extra $500 each month to put into savings. And that included alot of wants such as cable Internet service and a cell phone for myself and my husband.

There are lots of resources for budget planning advice and suggestions, financial calculators and retirement planning on the Internet and alot of it is really great information. Just don't overwhelm yourself. Take it one step at a time and before you know it you will have yourself into a routine of financial freedom and self-reliance.

Great Way to Balance Your Budget

I have tried many, many different ways to keep my budget balanced. The fact of the matter is I have a problem. Admitting the problem, that is supposed to be the first step to recovery, or so I have heard. Well I hope that I can not only recover from my problem but help others to do the same. I have an addiction to shopping. I know it sounds strange, I almost laugh out loud just typing it, however, it is very, 100% true. I finally realized it after our bank account went into the negative for the third time and got took us for $500 in bounced check fees, again! Yes, I said again. Three times I took it into the negative numbers and three times, it cost us five hundred dollars, in bounced check fees.

After many prayers and lots of soul searching I came up with a few answers. First was the realization that I had a problem. Second came in the form of a wonderful friend of mine. I was talking to her about it and she choose to share with me her solution. I can imagine that this would not work for everyone, but it works for her and it has been working for me.

Here's what you do: You'll have three Checkbook Registers. One for you, one for your spouse and one for your house bills. You will need to sit down and figure out how much you spend each month. Figure out all of your house bills, i.e. Mortgage, car payments, utilities etc... At the beginning of the check register, give each it's own line with it's amount. Total the register and at the beginning of each month, add that amount into that register. I usually do it on the 5th, since that is when we get our first paycheck. Then you will want to figure out how much each of you spends in gasoline for your vehicles and add that into your individual registers. Then add in some play money. Make sure you give yourselves enough to eat out once in a while. This should all total less than you bring in on a monthly basis. The rest will never be added into a register and will just be allowed to sit in your bank account and earn you interest. I personally have about $500 or more going into my account every month that is never added into anyone's register, so it never gets spent.

Here are some key ingredients however.
First of all, this is best to start if you have a cushion of some sort. I used my tax returns.
Second, all my bills are on auto pay so I don't have to take the time or remember to pay them.
Third, all bills that have the option are on equal pay which keeps the payment predictable.
Fourth, this takes alot of discipline. If you run out of money in your register, you are done for the month. You cannot dip into another register. If you spend all your gas money, you are walking!

I hope you can find some help in this.