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Do We Need A Family Budget?

June 23, 2008 By

You’ve been thinking about making a family budget, but so far you just haven’t gotten around to it yet. Making a family budget may not be the most fun thing to do, but it really isn’t all that hard and may help you save a lot of money.

Spend Less Than You Make

The goal of a family budget is to spend less than you are making. You don’t want to be living over your means, at least not on a consistent basis. A family budget will help with this by showing you exactly how much money you have coming in each month and how much money is going back out. The money coming in will be your and your spouse’s salaries, plus any other money you have coming in from investments etc. The money going out is everything you spent from your rent or mortgage to grocery money. Your budget should calculate a running balance of where you stand for the month.

Identify Where You Are Wasting Money

Listing every dollar you spend each month will help you identify you were you may be wasting money. Spending $4.50 on a Mocha Late in the morning may not seem like a big deal, until you realize you are spending it 20 days a month making your Mocha Late total for the month $90.00, more than your cable bill. Having your monthly expenses on paper or in a spreadsheet can be a real eye opener when it comes to identifying where you may be wasting money each month.

Start Saving

Now that you identified where you were wasting money and are spending less than you are making, you can start saving money. Set some money aside and pay off your consumer debt such as credit cards. Just imagine how much you will save each year by not paying interest on that debt. Once your consumer debt is paid off, start setting up an emergency savings account. You should have enough money in this savings account to keep you going for at least 3 months. After that use your savings for a family vacation, your kid’s college education, and of course your own retirement.

Article by: Learn more about creating a family budget and saving at Our Family Budget – and sign up for the free family budget newsletter to get weekly money saving tips in your email inbox.

Filed Under: Money & Finance Tagged With: , , , ,

25 Easy Money-Saving Tips

June 16, 2008 By

1. Cut out the soda and drink more water! You’d be surprised how much you will save.

2. Go over your grocery list. Try buying more off-brands. Most of the ones I’ve tried are just as good as their more expensive counterparts.

3. Buy clothes and shoes for you and the kids from the clearance racks. I have been buying my sons’ school clothes this way for years!

4. Get movies from the library instead of renting them.

5. Same with books, borrow instead of buy. We usually only read them once anyway.

6. Go on a picnic instead of going to the restaurant. It is more fun and much cheaper!

7. Toss all your change in a “piggy bank” of some kind and let it accumulate for a few months or longer. You will think you struck it rich! (Not really, but it does add up)

8. If you have all the movie channels, cut them down a bit. Most of the movies rotate through them all anyway.

9. Do your laundry at night. The rates are cheaper.

10. Give your clothes an extra spin as it costs less to run a washer than the dryer.

11. Ask your credit card companies for a lower interest rate. Sometimes rather than lose a good customer, they will grant your wish!

12. Buy your holiday decorations AFTER the holiday. You can save up to 75% or more.

13. Turn down your heat a couple degrees more at night and throw on an extra blanket.

14. Clean behind your refrigerator at least once a year to get out all the dust and dirt that can cost you more money.

15. Save empty bread bags and grocery bags instead of buying box after box of storage bags.

16. Keep your car tuned and your tires properly inflated to save money on gas.

17. Buy inexpensive fabric for cloth napkins, doilies, etc.

18. Be creative when it comes to decorating. Use sheets to make curtains. Use an old quilt as a cozy wall-hanging. Create an artful display with family photos.

19. Save the new, convenient plastic coffee cans with handles. Paint them, decorate them and use them for organizers for kids art supplies, your CDs, pens & pencils, food envelopes, recipes, craft supplies, etc.

20. Turn unused stuff into money. If you have a gift you haven’t used or that shirt you bought and never wore, take them back to the store. You might not get full price, but some is better than none.

21. Use petroleum jelly to remove make-up. It is much more economical then beauty products made for
removing make-up.

22. Hydrogen peroxide can be used to kill germs in cuts and sores rather then expensive antibiotic medicines.

23. Make windowsill or container gardens and grow herbs and fresh vegetables.

24. Instead of a night on the town, send the kids to Grandma’s and have a romantic night at home.

25. Make and STICK TO a budget!

Find lots more tips, articles, and resources for your home, family & business at Seymour Products. Terri and her husband Terry also offer a low-cost, wholesale distributorship with unlimited support, and a complete line of one dollar ebooks and software with full resell rights.

Filed Under: Money & Finance Tagged With: , , , ,

Top 7 Ways to Reduce Your Income Taxes

June 9, 2008 By

Are you paying too much in income taxes? Are you getting all the credits and deductions you are entitled to? Here are 7 tips to help you minimize taxes and keep more in your pocket:

1. Participate in company retirement plans. Every dollar you contribute will reduce your taxable income and thus your income taxes. Similarly, enroll in your company’s flexible spending account. You can set aside money for medical expenses and day care expenses. This money is “use it or lose it” so make sure you estimate well!

2. Make sure you pay in enough taxes to avoid penalties. Uncle Sam charges interest and penalties if you don’t pay in at least 90% of your current year taxes or 100% of last year’s tax liability.

3. Buy a house. The mortgage interest and real estate taxes are deductible, and may allow you to itemize other deductions such as property taxes and charitable donations.

4. Keep your house for at least two years. One of the best tax breaks available today is the home sale exclusion, which allows you to exclude up to $250,000 ($500,000 for joint filers) of profit on the sale of your home from your income. However, you must have owned and lived in your home for at least two years to qualify for the exclusion.

5. Time your investment sales. If your income is higher than expected, sell some of your losers to reduce taxable income. If you will be selling a mutual fund, sell before the year-end distributions to avoid taxes on the upcoming dividend or capital gain. Also, you should allocate tax efficient investments to your taxable accounts and non-efficient investments to your retirement accounts, to reduce the tax you pay on interest, dividends and capital gains.

6. If you’re retired, plan your retirement plan distributions carefully. If a retirement plan distribution will push you into a higher tax bracket, consider taking money out of taxable investments to keep you in the lower tax bracket. Also, pay attention to the 59 ½ age limit. Withdrawals taken before this age can result in penalties in addition to income taxes.

7. Bunch your expenses. Certain expenses must exceed a minimum before you can deduct them (medical expenses must exceed 7.5% of your adjusted gross income and miscellaneous expenses such as tax preparation fees must exceed 2% of your AGI). In order to deduct these expenses, you may need to bunch these types of expenses into a single year to get above the minimum. To achieve this, you might prepay medical and miscellaneous expenses on December 31 to get above the minimum amount.

The most important thing is to be aware of the tax deductions and credits that apply to you and to plan for taxable events. And don’t be afraid to ask for help. The benefits from consulting an experienced tax professional far outweigh the cost to hire that professional.

Article by: Kristine A. McKinley, CPA, Certified Financial Planner®, and founder of Beacon Financial Advisors, teaches people how to invest and plan for retirement, college, and other financial goals. Kristine offers financial and tax planning on an hourly, fee-only basis. Learn how improving your credit score can save you hundreds to thousands of dollars each year by signing up for our free ecourse Boost Your Credit Score in Five Easy Steps.

Filed Under: Money & Finance Tagged With: , ,

How This Mom Got Out of Debt

June 2, 2008 By

Several months ago, I paid off my unsecured consumer debt. Other than my car payment, I don’t owe anyone a dime. It’s a great feeling! When I read stories of people who owe lots of money to creditors, it makes me so sad. It’s not easy, but getting out of debt is one of the best things I’ve ever done. I’m determined to never have credit card debt again. Basically, this is what I did to pay off my credit card debt. Maybe it will give you some ideas in your journey to become debt free.

  1. I stopped using the cards – You can’t get out of a hole unless you stop digging! Cutting up my credit cards and not keeping one “just in case” was essential.
  2. I paid off the smallest card first – I did this for the psychological boost it gave me. It had a small balance and getting it over with made me happy.
  3. I created a large visual – I put a large chart on my office wall with my debt, income and savings. It was exciting to see my savings and income grow each month while my debt got smaller!
  4. I sold stuff of value – I got rid of things that didn’t mean a lot to me but that could be turned into cash. And I disciplined myself to use that money towards the debt.
  5. I started an emergency fund first – While this seems backwards to some, it helped me feel safer and in control to have savings in the bank. I thought it would be awful to get out of debt and then have all 4 tires fall off my car or have some other emergency and have to get back in! So having that “baby contingency fund” gave me real peace of mind and made me feel proactive instead of reactive. It was a huge confidence booster that helped me operate from a place of strength and not fear.
  6. I ramped up my income – I worked hard in my business to step up my earnings so that I could make large payments on the debts.
  7. I tracked my spending – I kept a small notebook in my purse and wrote down EVERY penny I spent. Just the act of doing that curbed my spending! Plus it pointed out weak spots (coffee and books) that I could work on.
  8. I rewarded myself for being frugal – I budgeted a small amount (less than before but still something) on little treats for myself so I wouldn’t feel totally deprived.
  9. I transferred balances – I transferred balances on two cards to one that offered zero interest for 6 months. And I paid it off in 6 months then closed the card. Teehee! I beat the evil credit card companies at their own game!
  10. I read a lot about personal finance – I read a lot of books during that time about debt, personal finance and emotions around money. I discovered some great blogs! Keeping my mind full of great info about money kept me going and motivated when it got hard.
  11. I made sacrifices – I temporarily stopped paying my kids an allowance. I talked to them about my goals, about debt and about what we would do when the debt was paid. One of the things I did when the cards were paid was buy my oldest a guitar. I also didn’t buy myself new clothing for a few months. I just kept focusing on what I wanted, which was to not be beholden to anyone, and did whatever I could to meet that goal, which meant sacrificing things that weren’t as important to me.
  12. 12. I spoke my goal out loud – I shared my goal with others who were close to me, and because of that, opportunities came my way because I had declared my intention. People like to help people who are going somewhere. If you share your goals with people you love, they will help you meet that goal.

About the Author: Carrie Lauth is an internet marketing mom of 4 who blogs and who loves to share tips on how other moms can earn money from home. So stop by and see what she’s talking about now.

Filed Under: Money & Finance Tagged With: , , , , ,

Managing Your Money

May 26, 2008 By

With an effervescent consumer culture marked by excessive credit card use, it is necessary to weed out the truths in managing your money. Your financial assets may not be in hot water at this time, but many Americans are finding themselves strapped for cash, downright broke or in serious debt.

There are many steps to take in navigating most everyone’s goal of perfect credit. Low interest rate credit cards, for example, are a wonderful way to erase embarrassing credit histories marked by those student loans you forgot to pay 10 years ago. However, micro-managing your finances may not be your best skill, so check out some helpful hints.

What You Should Keep in Mind:

• Learn how to budget your money! Use an Excel spreadsheet if need be.

• Keep track of all credit purchases and which card you paid with—many credit problems stem from prior planning and disorganization.

• If you choose a low interest rate credit card, try to find one that doesn’t charge an annual fee. They’re out there!

• Sign up for a credit card that offers online banking—it will save you much hassle when you can’t remember how much you threw down in Atlantic City last week.

• See if a card you’re interested in charges minimum and maximum balance transfer fees and choose accordingly.

• Take late fees into consideration—even if you’re the most organized person on the face of the Earth. Everyone slips once in awhile.

• See if your low-interest rate credit card’s fees can be raised so you won’t run into surprises.

If you are used to making default payments, it’s a habit to consider dropping as quickly as possible. 6StarReviews.com reports that many companies have considered the needs of those who aren’t in best standing with Equifax. One of the top credit cards they researched in their low interest rate credit card reviews is Advanta Life of Balance Platinum Card.

Not only does a card of this caliber offer those on the borderline of debt six percent cash rebates, customers receive amazingly low interest rates and no annual fee. There are many other credit cards available for those seeking low APR’s, which could greatly increase your shots at financial stability.

However, keeping on top of your expenses can be challenging and we sympathize with those who aren’t mathematicians. But, last-minute borrowing from your personal portfolio isn’t something to resort to every time you forget to pay a bill.

Article by: Kelly Liyakasa is staff writer for 6StarReviews. Kelly Staller is site manager at 6StarReviews.com, a site dedicated to giving YOU, the consumer, the best product and service reviews around.

Filed Under: Money & Finance Tagged With: , , , , ,
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