Almost everyone is dealing with money issues nowadays.
The economy is teetering on recession, unemployment has skyrocketed, and inflation is causing everybody to pinch their pennies just a little bit more.
That doesn't have to mean a constant game of catch-up, though.
With an effective personal budget in place, the end of the month doesn't have to be the stuff of nightmares.
Creating a budget means preparation, and being prepared is always better than being able to make up for mistakes later.
Budget The first step in establishing healthy finances is creating a personal budget.
This means that you reconcile the amount of money that you must spend with the money that is coming in monthly.
This allows you to make sure everything that needs to be paid is, and that your money will take care of everything that you need.
The first step in creating a budget is to sit down and make a list of all of your expenditures.
This includes large expenses such as rent or mortgage, car payments, food, insurance and the like, but must also contain small expenses such as gas, snacks and tolls.
Once you have written down everything you spend money on, figure out how much you spend on the critical things and write them down then subtract those expenses from your monthly income.
What is left can be budgeted for extraneous things such as eating out or entertainment.
Your budget should have a small amount set aside as a "buffer" in case an emergency expense arises.
This budget should be treated as set in stone.
If you create and stick to your personal budget you will be much closer to financial health and success.
Banking Personal banking is a useful tool that many people can't imagine living without, but it can also be detrimental to your financial security if it is not handled well.
Banking includes a checking account and a savings account.
Both manage your money differently and can incur fees if you don't follow their guidelines.
Personal banking can be used to pay bills, save money and invest.
This works in conjunction with your personal budget to keep your finances organized and on track.
Money Saving Tips Getting your finances straight, and keeping them so, can be a large undertaking, but with a few simple money saving tips you can make a big step toward achieving your financial goals.
• Make savings part of your budget.
With the first paycheck of the month put a percentage in your savings account.
This should be treated like any other bill and never ignored.
This will help you start building your nest egg.
• Use your personal banking accounts to set up automatic bill pay.
This way the money will automatically be debited and not only will you not have to think about it, but you can't conveniently "forget" to pay a bill so you can pay for something else.
• Pick one small luxury a month that you will do without and instead put that money in your savings account.
This can be that very fancy, expensive cup of coffee in the morning or the newspaper subscription from a different state.
You will be amazed at how much money you spend on these things without even thinking about it.
• Start a Christmas Club account at your bank.
This account allows you to deposit a little bit of money each week and holds it in an untouchable account until the end of the year when you will be sent a check for the total amount you deposited.
Many institutions also apply interest to these accounts, which increases your savings.