The Different Types of Personal Accounting
2012 is here! New Year's resolutions do not have such a great record of success.
If you have chosen your debt relief plan, good for you; you are already ahead of the game.
If not, it would be a good place to start.
Thinking about a household budget? It works well for many, but after some research, it may not be the best solution for some.
If you have not lived within the guidelines of a budget before, it may feel like the worst kind of diet you have ever tried.
There are certainly some obvious advantages to a budget, but when you find yourself unable to live within the scope of one, trouble ensues.
There are different types of personal accounting, and lots of people find different ways of budgeting.
It IS vital, if you don't do a formal budget, to understand what is needed to make your basic payments for essentials.
These would include home mortgage/or rent, utilities, car payments, insurance payments, phone, food, and any payment plan you have agreed to.
Don't forget about those property tax bills, water bills, things that can sneak up on you.
There is a plan called 60/40.
It's fairly simple to follow.
60% of your income goes to those necessities that must be paid (including food and regular household maintenance).
The other 40% is for you to choose how to spend.
If you can do this, it is a very good system.
From the 40%, you have to determine a savings plan for emergencies, whether it be for your home, car of any number of obstacles that life throws your way.
Then allot what you need to plan for whatever you wish; vacation, college fund, set up a home business, etc.
Budgeting does not need to be carved in stone as long as you have good grasp on what is needed, and a good idea of how to cover yourself.
Credit cards seem to be a big downfall for a lot of people.
Use cash, or at least a debit card whenever possible.
That credit card will come with heavy consequences to your best laid plans at budgeting.
The most important thing is to remember what your goal is; to cut spending and work toward becoming debt free.
Unfortunately, like dieting, there is no easy cure or path.
It will require commitment on everyone's part.
Perhaps you could look at that cable bill again and see if an adjustment could be made? Brown bag lunches are a little time consuming, but not only will you save money, you will eat better.
Think about the long term, not the short.
Sure McD is quick and cheap, but when you total the expenses over a year, you will see the bigger win, and you will be healthier too if you make some wise choices.
Who knows better than you what you like to eat? Vacations at home can be made fun, and they don't have to be all about work unless you make them that way.
Travel these days isn't much fun anyway; think about it.
Getting scanned at the airport (bodily), flights getting cancelled, lost luggage, and the price of gas for even a road trip is exorbitant.
Pretend you are visiting your own town for the first time.
Do something different each day, and treat yourself to a meal at that place you never thought you could afford.
You have already saved so much on this "vacation", you could go for it.
With your savings, you could even afford a babysitter, but hey, you are at home, so ask friends or family to trade off the sitting responsibilities.
You could even trade houses for a change of scenery.
Be creative, and have fun.
Life is not all about money.
Oh, and don't forget to use those gift cards you got for Christmas before they begin to lose their value.
They do that.
Another type of personal accounting is for people who travel and file expense reports.
A good idea is to get a credit card for just those expenses, or at least a separate checking account to keep good records and to keep everything separate from your personal account.
You might consider a card issued by the airline you use the most.
While accumulating miles while you travel, you will accumulate miles for your expenses.
This thing alone can save so many headaches for both you and your loved ones.
It will also increase your credit rating, get you more perks, and there is nothing to lose by doing this one thing.
Happy New Year to you all.
2012 should be better.
Everyone says so.
At least, that is what I've been hearing.
In the mean time, hang in there, and feel free to send your comments.
If you have chosen your debt relief plan, good for you; you are already ahead of the game.
If not, it would be a good place to start.
Thinking about a household budget? It works well for many, but after some research, it may not be the best solution for some.
If you have not lived within the guidelines of a budget before, it may feel like the worst kind of diet you have ever tried.
There are certainly some obvious advantages to a budget, but when you find yourself unable to live within the scope of one, trouble ensues.
There are different types of personal accounting, and lots of people find different ways of budgeting.
It IS vital, if you don't do a formal budget, to understand what is needed to make your basic payments for essentials.
These would include home mortgage/or rent, utilities, car payments, insurance payments, phone, food, and any payment plan you have agreed to.
Don't forget about those property tax bills, water bills, things that can sneak up on you.
There is a plan called 60/40.
It's fairly simple to follow.
60% of your income goes to those necessities that must be paid (including food and regular household maintenance).
The other 40% is for you to choose how to spend.
If you can do this, it is a very good system.
From the 40%, you have to determine a savings plan for emergencies, whether it be for your home, car of any number of obstacles that life throws your way.
Then allot what you need to plan for whatever you wish; vacation, college fund, set up a home business, etc.
Budgeting does not need to be carved in stone as long as you have good grasp on what is needed, and a good idea of how to cover yourself.
Credit cards seem to be a big downfall for a lot of people.
Use cash, or at least a debit card whenever possible.
That credit card will come with heavy consequences to your best laid plans at budgeting.
The most important thing is to remember what your goal is; to cut spending and work toward becoming debt free.
Unfortunately, like dieting, there is no easy cure or path.
It will require commitment on everyone's part.
Perhaps you could look at that cable bill again and see if an adjustment could be made? Brown bag lunches are a little time consuming, but not only will you save money, you will eat better.
Think about the long term, not the short.
Sure McD is quick and cheap, but when you total the expenses over a year, you will see the bigger win, and you will be healthier too if you make some wise choices.
Who knows better than you what you like to eat? Vacations at home can be made fun, and they don't have to be all about work unless you make them that way.
Travel these days isn't much fun anyway; think about it.
Getting scanned at the airport (bodily), flights getting cancelled, lost luggage, and the price of gas for even a road trip is exorbitant.
Pretend you are visiting your own town for the first time.
Do something different each day, and treat yourself to a meal at that place you never thought you could afford.
You have already saved so much on this "vacation", you could go for it.
With your savings, you could even afford a babysitter, but hey, you are at home, so ask friends or family to trade off the sitting responsibilities.
You could even trade houses for a change of scenery.
Be creative, and have fun.
Life is not all about money.
Oh, and don't forget to use those gift cards you got for Christmas before they begin to lose their value.
They do that.
Another type of personal accounting is for people who travel and file expense reports.
A good idea is to get a credit card for just those expenses, or at least a separate checking account to keep good records and to keep everything separate from your personal account.
You might consider a card issued by the airline you use the most.
While accumulating miles while you travel, you will accumulate miles for your expenses.
This thing alone can save so many headaches for both you and your loved ones.
It will also increase your credit rating, get you more perks, and there is nothing to lose by doing this one thing.
Happy New Year to you all.
2012 should be better.
Everyone says so.
At least, that is what I've been hearing.
In the mean time, hang in there, and feel free to send your comments.
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