Money Budgeting is a phrase that either bores them too much, or makes them depressed. But, this is how successful people deal with money - they budget. It's a lesson that must be learned to succeed financially in this life. Here is some helpful information.
Many people are lured into the trap of spending more money each week than they are bringing in and most people are doing this without even realizing it. The main reason this happens is because we are no longer taught or remember how to budget our money. With the introduction of credit, it has become easier to use money that you don't actually have.
This lack of money budgeting in today's world is beginning to reach a cataclysm with many families, and individuals who are now finding themselves with severe debt problems and little knowledge about how to turn their bleak situation around.
Even with all of the bad debt write-offs, banks are more than happy with the way things are. Banks build in their own risk factors based on bad debt in their interest rates to give them profit regardless of bad debt write-offs. Simply put, those borrowing money are paying for their inability to budget effectively.
Tips to Effective Money Budgeting:
The basics of budgeting start with you listing incoming money over a period of time, such as a weekly, monthly or fortnightly, then listing the outgoing money, such as mortgage payments, car re-payments, credit cards and so on. Money budgeting also has many other factors used to make it effective, including keeping a constant eye on how your budget is doing and changing it to accommodate unexpected problems without overspending.
Keep all of your receipts and account for what has been spent. Use this to make calculations as to where your money is going and for what. Expenses can be divided into four main categories. These are:
-Housing: mortgage, rent, utilities, property taxes, insurance, etc.
-Work: transport, parking, work clothes, lunches and if you have children, day care
-Living: food, clothing, medication, insurance, etc.
-Personal: entertainment, newspapers, magazines, alcohol, gifts and education, etc.
Once you have categorized all of your bills, take out a blank piece of paper and a calculator. Figure out what is being spent each month on these categories and what can be cut out of the budget to allow more money to go toward bills or improving your financial situation.
Many people get so used to luxuries, they turn these things into fixtures in their weekly, fortnightly or monthly spending habits. By weeding these expenses out or making them a luxury again that is only enjoyed occasionally, you can also save quite a substantial amount of money. When you go through your spending habits, you will be able to calculate how much you are actually spending on these things.
Don't forget that a contingency fund should always be factored into any money budget. This works out to be around 10 % of your income. A contingency fund will benefit you when you need it the most, such as when you lose your job or have an unexpected expense such as plumbing go wrong in your home. This contingency fund should be kept in a separate savings account and only accessed in emergencies.
Motivation Is The Key:
Motivation is very important when you are budgeting. As an incentive to create a budget and stick to it, remember that the only way to regain wealth is by spending less money than you are receiving. The only way to spend less and do more with your money is to learn how to effectively budget it and stick to your plan.
Once you start to see the benefits of your budgeting and are rewarded with more money in your bank account after you have finished paying out, you will be more encouraged than ever to budget your money.
Another way to teach yourself to budget is to give yourself a solid incentive to stick to it, and make your budget work. You may make it your goal to get your finances in order, so that you can take a vacation or get something that you and your family really wants. Place reminders on your fridge or in your wallet. By doing this, you will be reminding yourself of the reason you have decided to sacrifice some of your luxury spending.
Although this sounds great, when you budget, you will have to learn to set aside any emotions that you may feel toward your budget. Examples of emotions getting in the way and interfering with a well planned budget is when you have to cut out the things that you want, such as weekend breaks away, toys for your children or new furniture, for a while, until you have arranged your finances for the better better.
If you have a family, try to keep them involved in your money budgeting and where the budget needs to be tightened to benefit everyone to exclude non-essentials, explain to family members why budgeting is important. This will help to educate those around you about the importance of budgeting and how budgeting can help you all obtain the things that you want, such as luxuries, without them being a financial burden.
Another trap many people fall into is getting into the habit of 'keeping up with the Jones' regardless of their own personal financial situations. After all, money budgeting is about your personal set of circumstances and your personal finances, not someone else's. Just because your neighbors have just bought the latest model car or had cable television installed, doesn't mean that you have to, pay attention to your budget and let it be your decider on whether you can afford the things that you want.
Budgeting is a vital skill needed to control your finances and avoid getting into serious debt. By educating yourself on how to budget effectively, taking the time to carefully plan a good budget and monitoring it regularly you will be able to keep yourself and your family encouraged to stick with it.
Set achievable goals and even though, at first, money budgeting may seem tough, it is the only way to have the things that you want, as well as a secure financial future. Ken Black is the owner of Debt Relief Today, a website all about money budgeting, credit counseling and Credit Card Debt Consolidation for those in need of financial assistance.
From : Ezine-Articles.Org
Monday, October 19, 2009
Tuesday, June 16, 2009
What To Look For When Applying For A Loan
Part of getting a loan is making sure that you get the best loan that you can. This means that you are going to have to learn a little bit about the process and the terms, but here are a few things you can do to give you that good deal.
Start off by figuring out what kind of loan you want. If you want a loan for a new house, then you have the option of going a number of ways. Start off, though, by looking at your credit report. You can get a free copy from the major credit reporting agencies. It is important to review your report and see if there are any problems recorded. It is not unusual to find at least one problem, but you need to know that a problem or two may reduce or even eliminate your ability to get the loan you want. Then call the companies involved and try to have them corrected.
Once your credit rate is checked, or talk to your banker, then go online and look for the type of loan you want. There are many to choose from, but one will suit your needs more than another. Even loans for people with bad credit are now readily available, so do not let your rating stop you from trying.
Interest Rate
One of the most important things you should look at is the interest rate. This feature determines how much you will pay back to the lender over the lifetime of the loan. For this reason, one or two percent does make quite a bit of difference - if you have a choice. Go for a loan with the lowest amount of interest possible.
Payoff Options
This is how long your loan is for. Generally, two things happen when you have a loan with payment terms that cover a longer time period. First, the good side is that it has lower payments. Secondly, the bad side, is that it is going to cost you more over the long term. Even if you get rather low interest rates, the time factor always means greater cost.
If you are buying a house, be careful of borrowing more than the house is worth because it makes the house have negative equity. It makes money available, but you may have to live there for some time - just to break even.
Check The Credibility of The Company
With any loan that you go for, it is important that you make sure the company is legitimate. You can check for complaints online and learn a little about the company. It is a good idea to stay away from a company that just does not look or sound right - they probably are not.
Finally, be sure to shop around. By looking online to see what kinds of deals are available, you can get a better deal and sleep a lot better at night. Joe Kenny writes for SelectLoans.co.uk, a personal loans comparison site, visit us today for information on all loan topics including UK secured loans and links to leading UK providers.
Our Site: http://www.selectloans.co.uk/
From: Ezine-Articles.Org
Start off by figuring out what kind of loan you want. If you want a loan for a new house, then you have the option of going a number of ways. Start off, though, by looking at your credit report. You can get a free copy from the major credit reporting agencies. It is important to review your report and see if there are any problems recorded. It is not unusual to find at least one problem, but you need to know that a problem or two may reduce or even eliminate your ability to get the loan you want. Then call the companies involved and try to have them corrected.
Once your credit rate is checked, or talk to your banker, then go online and look for the type of loan you want. There are many to choose from, but one will suit your needs more than another. Even loans for people with bad credit are now readily available, so do not let your rating stop you from trying.
Interest Rate
One of the most important things you should look at is the interest rate. This feature determines how much you will pay back to the lender over the lifetime of the loan. For this reason, one or two percent does make quite a bit of difference - if you have a choice. Go for a loan with the lowest amount of interest possible.
Payoff Options
This is how long your loan is for. Generally, two things happen when you have a loan with payment terms that cover a longer time period. First, the good side is that it has lower payments. Secondly, the bad side, is that it is going to cost you more over the long term. Even if you get rather low interest rates, the time factor always means greater cost.
If you are buying a house, be careful of borrowing more than the house is worth because it makes the house have negative equity. It makes money available, but you may have to live there for some time - just to break even.
Check The Credibility of The Company
With any loan that you go for, it is important that you make sure the company is legitimate. You can check for complaints online and learn a little about the company. It is a good idea to stay away from a company that just does not look or sound right - they probably are not.
Finally, be sure to shop around. By looking online to see what kinds of deals are available, you can get a better deal and sleep a lot better at night. Joe Kenny writes for SelectLoans.co.uk, a personal loans comparison site, visit us today for information on all loan topics including UK secured loans and links to leading UK providers.
Our Site: http://www.selectloans.co.uk/
From: Ezine-Articles.Org
Wednesday, May 20, 2009
How Can I Get A Personal Loan?
A personal loan is a loan that you can get for any particular reason. You can do with the money whatever you want. Whether you want it to consolidate your debts, buy a new car, fix up the house, or take a trip - that is up to you to decide. Here are some things you need to know about how to get a personal loan.
Two Kinds
Personal loans come in basically two forms - secured and unsecured. The secured form of a personal loan means, like most loans, that you could lose the item if you do not make the payments. Security is usually in the form of a house, but a car will usually work, too, for a smaller loan. Having security for a loan will usually mean that you can get a larger loan and a much better rate of interest. This is the best kind of personal loan to get.
An unsecured loan means that you give nothing in the form of security for the loan. Since it also means a greater risk to the lender, this type of loan usually means higher interest rates, and a shorter time for repayment.
What Is Needed
In order to qualify for this type of loan you will need a couple of things. The lender is not going to loan money to anybody who walks in off the street. So, besides the usual identification requirements, you will need proof of employment like a recent paystub, and a rather good credit rating - in most cases.
Now, however, quite a few lending institutions are giving out money even to people with bad credit. Some, even offer in their advertising to extend credit to those with bad credit - and without a credit check! You can be sure, though, that the interest rates are high, and that this type of loan is probably not in your best interest. Many lending institutions do not offer this type of loan because of the risk involved.
Be Sure To Compare
When getting your personal loan be sure to take the time to see what a few other companies might offer you. You can do this very easily over the Internet. You will want to compare not only the interest rates and size of the payments, but also any other features the loan may have. Also, be sure that you can pay the personal loan off early, if possible, and have a reduction in interest (some loans do not allow this - such as a payday loan). In order to properly understand what you will be paying, you may want to compare it to a secured loan, too, if you are thinking about getting an unsecured loan and you will see quite a difference.
Use It To Better Your Credit Rating
A personal loan will effect your credit rating, too. So, if your credit is not in the best of
shape, you can improve your rating by how well you pay off this one. Ideally, you will want to make every payment on time, and for the full amount of the payment. If possible, add a little extra to each one, too, in order to get it paid off early. Joe Kenny writes for SelectLoans.co.uk, a personal loans comparison site, visit us today for information on all loan topics including UK secured loans and links to leading UK providers.
Our Site: http://www.selectloans.co.uk/
Article from : Ezine-Articles.Org
Two Kinds
Personal loans come in basically two forms - secured and unsecured. The secured form of a personal loan means, like most loans, that you could lose the item if you do not make the payments. Security is usually in the form of a house, but a car will usually work, too, for a smaller loan. Having security for a loan will usually mean that you can get a larger loan and a much better rate of interest. This is the best kind of personal loan to get.
An unsecured loan means that you give nothing in the form of security for the loan. Since it also means a greater risk to the lender, this type of loan usually means higher interest rates, and a shorter time for repayment.
What Is Needed
In order to qualify for this type of loan you will need a couple of things. The lender is not going to loan money to anybody who walks in off the street. So, besides the usual identification requirements, you will need proof of employment like a recent paystub, and a rather good credit rating - in most cases.
Now, however, quite a few lending institutions are giving out money even to people with bad credit. Some, even offer in their advertising to extend credit to those with bad credit - and without a credit check! You can be sure, though, that the interest rates are high, and that this type of loan is probably not in your best interest. Many lending institutions do not offer this type of loan because of the risk involved.
Be Sure To Compare
When getting your personal loan be sure to take the time to see what a few other companies might offer you. You can do this very easily over the Internet. You will want to compare not only the interest rates and size of the payments, but also any other features the loan may have. Also, be sure that you can pay the personal loan off early, if possible, and have a reduction in interest (some loans do not allow this - such as a payday loan). In order to properly understand what you will be paying, you may want to compare it to a secured loan, too, if you are thinking about getting an unsecured loan and you will see quite a difference.
Use It To Better Your Credit Rating
A personal loan will effect your credit rating, too. So, if your credit is not in the best of
shape, you can improve your rating by how well you pay off this one. Ideally, you will want to make every payment on time, and for the full amount of the payment. If possible, add a little extra to each one, too, in order to get it paid off early. Joe Kenny writes for SelectLoans.co.uk, a personal loans comparison site, visit us today for information on all loan topics including UK secured loans and links to leading UK providers.
Our Site: http://www.selectloans.co.uk/
Article from : Ezine-Articles.Org
Welcome to My Blog
Hi
Welcome to my blog.
We will discuss about loan especially personal loan, 5C's (credit concept) and Base Lending Rate in lending activities in this blog.
See you
bye
Syanina
Welcome to my blog.
We will discuss about loan especially personal loan, 5C's (credit concept) and Base Lending Rate in lending activities in this blog.
See you
bye
Syanina
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