Daily Money Tips

Many people learn best by example; you may be one of them. The following sample household budgets are intended to show a couple of simple approaches to recording a budget. The important thing to realize about these is that there is no one right way to do a budget. Some people are afraid of not doing their budget the ‘right way’ or that if they make a mistake, there will be dire consequences. Nothing could be further from the truth – the only wrong way to do a budget is to not do one at all. Trying to create a budget and not getting it exactly right or accurate is far better and more useful than not trying at all. Creating a budget is an iterative process and there is no school teacher that is going to scold you and give you a bad grade if it’s not perfect. So, let’s dive right in and take a look at our first sample household budget.

Our first sample budget is for a single female, just out of college. We’ll call her Sara. Sara has a paid for, used car that she received as a graduation present, a new apartment for which she just signed a lease, two credit cards she got while in college, a full-time graphic artist job at a sign company, and a cat. She sits down with a pen and paper and carefully comes up with the following monthly budget:

Income: $984, every two weeks (take-home pay)

Expenses, per month…
Rent: $1050
Electricity: $100
Internet/TV: $79.53
Car, gas: $80 Car, oil $10
Car, repairs $100
Car, insurance $106.23
Acme Debt Card: $79
YouOus Card: $54
Fluffy (shots, food, etc.): $60
Groceries: $150

Sara decides to play it safe and figures her normal monthly income, for the purposes of her budget, as just two pay periods per month (even though two months out of the year she will get 3.): 984×2 = $1968 and then she subtracts her total estimated monthly expenses of: 1868.76. Whew! She has 99 bucks left over; just enough to go out a few times to happy hour with her friends and cover a couple of miscellaneous items (clothes?) that pop up. Her health insurance is automatically deducted from her paycheck, and she figures the two extra paychecks per year will help cover vacations or emergencies (shoes perhaps?) that may occur. Not too bad. Let’s take a look at another budget example…

For our second sample budget, John and Carla are a married couple with two boys. John is a utility supervisor who takes home $1462 twice a month. Carla makes about $400/month selling hand-painted pottery online. John drives his work truck during the week and the family shares a minivan. Several years ago, they bought a small 3 bedroom house in a nice neighborhood and they have just one credit card they keep for emergencies. While John is at work, Carla works up the following in a spreadsheet on their home computer, by allocating all their funds to appropriate categories for their family:

Monthly

Our Income: $3324

Our Expenses:
Mortgage: $950
Utility company: $209
Internet: $49
Satellite TV: $49
Van payment: $320
Van (gas, oil, etc.): $140
Van Insurance: $127
Groceries, etc.: $500
Home repair fund: $100
Life Insurance: $79
Rainy Day Savings: $100
Clothes: $100
Boys’ college fund: $207
Entertainment: $114
Christmas and birthdays: $100
Investment: $100
Charity: $80

As a city employee, John receives excellent health benefits for the whole family, so Carla leaves medical expenses out of their budget. She has wisely allocated funds for emergencies, Christmas and birthdays, as well as long term investment in addition to what John is already contributing to his investment plan through work. John and Carla have also wisely avoided excessive debt – limiting their borrowing to just their house and vehicle. And they save considerable money by eating at home most of the time.

In both of these examples, our budgeters did what works for them. There is no one right or wrong way to create a budget. Getting bogged down by details can sometimes abort your budget before you finish. So, when starting out to create a budget, keep it simple. As you get better at estimating items in your budget, you can increase or further decrease the level of detail as you see fit after reviewing your actual spending from time to time. Your budget is a ‘best guess’ at what you think can work for your personal finances – a written goal that we strive towards, but don’t always expect to perfectly meet. Hopefully, these simple household budgets have illustrated that a good budget need be nothing more than a simple list of your income and expenses, catered to your unique financial situation.

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Save money by multiplying and dividing herb garden plants and keep your garden budget under control. Once you’ve started herbs they do all the work and propagate themselves. Except for some annuals, you will seldom need to buy seeds or plants after your first investment.

You can propagate herbs from seeds, runners, layering, stem cuttings, bulblets, root division, crown division, and root crown division.

Propagating from roots and stems will maintain a particular strain of plant better than seed.  For example sage, with desirable qualities, often will not propagate the same when seeded. This is also true with woody plants such as lavender, winter savory, and thyme.

Chives can be started from seed, but separating the bulblets is quicker and easier. Lemon balm self-sows, and propagates from runners as do the mints.

Herbs such as thyme and sage are easily propagated by the layering method. Although these two herbs will layer themselves, you can do it for them by pegging down a stem of a growing plant in the soil. Cover the pegged section with soil and water it every day. When you see root growth on the buried stem cut it away from the parent plant.

Dividing one plant into two or more is called root division. Early in the planting season choose the plant you wish to divide. Cut it back to 4 inches from the ground. Next, loosen the soil around the plant so it will come out of the ground easily without breaking the roots. Finally, split the plant apart and plant the new root divisions, watering them regularly until they are well established.

If you’re dividing woody-stemmed plants such as sage or thyme, cut off the section of the plant which already has small roots attached and plant them. Discard the woody center.   

If you’re doing stem cuttings, never cut on the diagonal as you do with flowers. Cut across the stem at a point where a leaf is attached. Each section should be about 6 inches long and should have a set of leaves near the upper end. Snip off the larger leaves and leave the young ones and leaf buds attached on the upper third of the stem. Put the cuttings in water as soon as they are removed from the plant.

Next fill a shallow container with clean, moist gritty sand or vermiculite and punch some holes in the bottom. Make a hole with your finger, insert the cutting to a depth of from one-half to two-thirds of its length, pack firmly and wet the sand thoroughly. Cover the container with plastic, leaving some ventilation holes, put it in a sunny place, and keep the sand moist (not wet). Cover the plastic with paper or cheesecloth for the first two weeks so that the cuttings won’t wilt. Roots should develop in about two weeks, and the cuttings will be ready to plant in about four to six weeks. 

Since annuals are started from seed each year, save some for next year’s planting. Pick the entire seed heads and drop each variety into a labeled paper bag. When the seed heads have dried, rub them between your hands to separate the seeds from the hulls and store the seeds in glass jars so they will stay free from dampness and insects.

With all that work behind you you’re now ready for another great planting season, with little to no investment required for your herb garden.

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Our names are John Schepper and Maggie Guscott and we’ve been herb garden enthusiasts for many years. For more information on herb garden tips and more, please visit http://www.herbgarden4beginners.com and be sure to sign up for our free 10-lesson mini eCourse, Herb Garden 4 Beginners.

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Whatever part of the world you live in and whatever economic situation you are currently dealing with, the basic structure on how to make money remains the same. There are many tips on how to make money and they always centre on the same principle. They have also stood the test of time and regardless of race and economic situation, they work if followed religiously.

Making money doesn’t have to involve ingenious mathematical solution. The most valuable lessons in life are free and there are simple money making tools that can give powerful results. They’re low maintenance and cheap and if they don’t work out, it is always easy to recover from it since you didn’t have to spend a lot of money on it. Get a job that would stimulate your whole being, not just fill your pocket. If doing your job feels like a requirement to earn money and nothing else, you don’t get to be creative so, you become a failure. On the other hand, a job that you love doing will encourage you to produce excellent results so you earn more. It is a situation that you can never lose.

In a world where competition seems to be the driving force of many individuals, you need to excel in your field. Knowledge is a key that will unlock many doors of opportunities so make sure that you charge into the battlefield with sufficient ammunition. Creating wise decision also stems from a good knowledge and it is important to make fewer mistakes with every decision you make. Learn from your past experiences and trust your instincts.

One of the most important tips of making money is to pay off all of your debts and get out of it as soon as you can. Credit cards are temptations that always beckon and only few are able to resist. People tend to buy things that they don’t really need because they have an instrument in their hands that allow them to do that. Credit cards are very useful when utilized wisely. Also, don’t take out a loan unless you have to and make sure that you have the means to pay it off when it’s due. To avoid getting deep into dept and gain financial freedom, adapt a policy that would only allow you to spend when necessary.

There are a lot of strategies to making money on the Internet, but nothing makes sense unless you have a big list. Email Marketing is the most profitable way to make money on the Internet. When you build a list of hot and hungry prospects or leads, you control your future. Discover how to use the Internet and turn your computer into a cash gushing machine. Sign-up right now for your FREE online newsletter to find out how to do exactly that – Go here: http://www.UltimateResultsMarketing.com.

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When you are desperate to raise emergency funds, it usually doesn’t take very long for you to realize who really cares about you, who is truly a friend … be they family or not.

Here are a few emergency budgeting tips:

Budgeting Tip #1: The first thing you want to do is prioritize to get back on track very quickly. If that means letting your credit card bill go for a bit, so be it. As soon as you realize that you have a money emergency, contact your credit card issuers and request reduced interest rates and payments. Not only one, both!

Budgeting Tip #2: For your car payment, call the creditor and request a payment extension. Perhaps you hate payment extensions, because they require a fee and you still have to make the payment at the end of the contract. In this case, a payment extension can allow a little breathing room to help you recover during your money emergency. Expect that you will likely have to pay a fee (usually about 1/4 – 1/3 the car payment amount) for the extension. Freeing up the money you need today is your first and only goal at this point.

Budgeting Tip #3: Check to see if your mortgage holder will allow an extension for a nominal fee. Do this today!

Budgeting Tip #4: Another quick fix, is to host an on the spot yard sale. You don’t have too much time for planning, so do a quick survey of your personal belongings. Come up with clothes that no longer fit, but that are in good condition, knick-knacks, dishes, and books as well as stuff you bought but no longer use. Throw it all together, quickly. Put some notices up the same day at laundry mats and grocery stores around town, and remember to place a sign at the end of your driveway. You can make a quick $300 this way with very little time and effort.

Budgeting Tip #5: If you have a larger item to sell, call into the local radio stations to see if they have a “call in swap show” on the weekends. This is a very popular way to quickly convert gently used and more expensive items to fast cash.

Budgeting Tip #6: Another quick option is with utility and telephone bills. If you aren’t already on a budget plan, ask that the current bill (plus any previous balance you owe) be set up for a budget plan. Expect to pay a down payment (usually 1/4 of the bill) and that all future bills (while on the back payment budget plan) must be kept current. The nice thing about it … it’s usually interest free, and can give you some much-needed breathing space for a month. You must be sure though that you maintain the regular utility payments AND the budget payments in the coming month.

Budgeting Tip #7: Check with your family church regarding emergency help. Local churches can be one of the best places to find out what’s available in the community to help those in need, or in times of emergency. Check with your local church, first.

Getting Fast Cash through Borrowing

If you are absolutely, positively, in a bind, a real cash emergency, and you have exhausted all of the above, then consider borrowing. First, ask your family, then your local bank.

As a last resort, you may want to consider what’s known as a “Payday Loan.” These types of borrowing stores can be useful when all else fails.

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Many people are trying their luck at real estate investing, and although many are wildly successful many more are not. The truth is there is very little luck involved in real estate investing; the best way to be successful is to arm yourself with knowledge about the type of investing you want to do as well as knowledge about the market in which you are planning to invest. There are countless ways to get the information you need to be successful in your real estate investing endeavors including books, websites, and real estate investing seminars. All of these methods will give you information, but the best way is to learn about real estate investing from someone who has already found success and can teach you the methods they used to profit in the business through a real estate investing seminar.

A real estate investing seminar held by a successful and experienced real estate investor will give you the best chances of success. Learning form a professional is often a more effective way to educate yourself than independent study because you are benefiting from the experience, tips, and advice in a one on one fashion of a professional. One of the best ways to be successful in any field is to model yourself and your business practices off of someone who is already successful in your field of interest. Taking a real estate investing seminar will allow you to learn successful business practices that have already been tried and tested for success. There are many real estate investing seminars out there, and not all are of the same quality. Make sure the real estate investing seminar you choose is run by someone who is already successful and has the track record to prove it.

There are lots of companies that run real estate investing seminars in hopes of generating an income off of the seminar but they do not have the experience or expertise to pass on to you to make you successful. If you are looking for a real estate investing seminar it is best to ask around for recommendations from anyone you know who has an interest in real estate investing to see if they can recommend a real estate investing seminar that they benefited from.

If you don’t personally know anyone in the real estate investing business some quick research online will give you thousands of real estate investing seminar choices. You should then search based on the individual real estate investing seminar or the presenter’s name to find out what past participants have to say about the program and the success it brought to them. Never sign up for a real estate investing seminar that is mainly about selling you additional resources or subscribing to services. The real estate investing seminars that will help you the most are ones that offer real insight, information, tips, and advice about real estate investing without trying to sell your additional things. Making a profit from real estate investing is not easy but with the right knowledge from a quality real estate investing seminar the potential for great profit is there.

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Do You have the courage to make $73635.82 in a Month? I’m talking about the fear of SUCCESS. Have you ever imagined yourself as a millionaire? Believe it or not, most people – myself included, until a few years ago – carry with them a deep rooted fear of success. In some cramped, dark part of themselves, a place so deep and hidden they may not even know it exists, everyday normal people are absolutely horrified of succeeding because – and this is the Secret – they don’t feel they deserve to succeed. “Former Wage Slave Discovers Powerful New Method To ‘Clean House’ By Turning Any Personal Computer Into An Automatic Cash Machine!” Are you with me? Then let’s roll… Here’s an online resource center for finding ways to make money information, ways to make money tips and guide, absolutely free!

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If there’s one aspect in your life that you need total control over, it’s none other than your finances. But what if you find yourself in a situation when you have acquired more debt that you can handle? 

In a world which mostly relies on a credit system, it is pretty hard to get by without incurring debt and utilizing your credit card. Over time, these debts may pile up one after another – which leaves you with an option to either pay the minimal fee or the full amount of what you owe. But what if the debts pile up and you are left with more credit than your finances can actually handle? 

No matter how good you are in managing your finances, there is a possibility for you to over-borrow or spend beyond your means. It is exactly to prevent things like these from happening which is the reason why you need to understand debt, money management and bankruptcy.  

Managing Your Money & Understanding Debt 

Naturally, in order for you to not get knee-deep in debt, what you can do is try to avoid debt in the first place. Maybe you can setup a budgeting system if you are in charge of the finances in your household. Monitor the amount of money that comes in and deduct your monthly expense from it.  Set a limit amount for what you can charge against your credit card – use cash as often as possible. 

Now, in terms of debt management, the rule of thumb to keep in mind is that some debts are more important than others. If you have several credit card accounts, for example, you need to pay off at least the minimum amount of what you owe on the card which has the highest interest rate. When you put off paying a due credit card bill, the interest rates would pile up, leaving you with a mountain of debt to deal with later on. 

The next most important debt that you have is your mortgage loan. Depending on your monthly salary, this is something that you should really set aside the funds for. Otherwise, you are risking having your home foreclosed if you become delinquent with the payments. If you have a car loan, set aside money for that as well. 

These two loans are called secured loans because you are borrowing money against the value of your property – that is why they should be prioritized at all times. Credit card debts, on the other hand, are considered unsecured debts because you are not borrowing money against a secured property that you own. 

The Pros & Cons of Filing for Bankruptcy 

If worse comes to worst and you are already on the brink of filing for bankruptcy, it is important to know the pros and cons of filing for it. Depending on the current state of your finances, you can either file for a Chapter 7 or Chapter 13 bankruptcy. 

If you have more debt that you can actually handle, filing for bankruptcy might actually be better all the way round because your home can be saved from foreclosure and your debts might be written off.  Always consult a lawyer who is an expert in helping people with bankruptcy cases if you are considering taking this route. 

There is absolutely no harm in admitting that you need professional help if you think that your debts are too massive for you to handle by yourself. If the obvious solution is to file for bankruptcy, have an overall picture of your finances and see if it is the best way for you to go – or if there are other alternatives that you can consider.

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Spending money wisely is one of the biggest things we all worry about. We are told not to spend more money than we earn. If you earn $ 2,000 a month you shouldn’t be spending $ 2,500 during that month. But it is easier said than done, we might pass by a shop and start buying things on impulse e.g. shoes (for ladies) and other clothing. Spending money is tricky especially if you want to make every dollar or pound or Euro to work for you. Using money is even harder if you are in another country during your holiday, volunteer/ intern abroad trip, gap year. During this period you won’t be getting extra income and the one you get won’t be able to meet your needs. To avoid calling home to ask for money to be sent to you or using too much of your credit card, money should be spent wisely. Spending money wisely will reduce the credit card debt you will incur when you are abroad. It’s harder saving money while abroad because you don’t know where to get the best deals and the locals see you as a cash cow to be taken advantage of. Here are tips that will help you to save money and make the most of your volunteer/ intern abroad and gap years:

Before you leave

Make the most of your money before you leave, book in advance in order to get the best flight ticket. Buying your airline ticket early allows you to get the best deals to your volunteer/ intern destination.  Paying for the ticket in advance allows you to save a few hundred dollars or Euros. Booking for hotels and hostel in advance helps in saving money. As in some you might be able to take advantage of the low rates during the off season.  Research for the best deals that are available from the internet. Travel insurance is very important and should be taken seriously. If you are to buy it from a travel agent they will sell you policies which are expensive. Or they will send you to firms which are not at cost. Shop around and look for the most cost effective plan for yourself. That is if you will be travelling once or you will travelling in many times during the year. With different options you will be able to choose wisely which the best is for you.

Bank accounts

Using credit cards overseas is very useful and effective. But there are many hidden costs and charges that they don’t tell you when you are applying for them. First of is the transaction fees they charge are different than what they charge you while you are at home. Then secondly there are currency conversion rates which in some banks are about 2 or 3 %. Use debit cards as opposed to credit cards while you are abroad. This is because credit cards start charging you interest from the time you have withdrawn cash. Due to these costs, when you use the ATMs, withdraw large amounts and do it once in a while.  If you are going to stay in the host country for a period of 6 to 12 months it’s advisable to open a local bank account. Opening a local bank account is better as you won’t have to worry about ATM fees, Currency conversion and huge interest rates. After your volunteer / intern abroad program is over, you can withdraw all your cash and change it back to your currency at the banks.

Communication Costs

When you arrive at your host country, buy a cheap local phone which will help you communicate with your friends and family. Due to the advent of the internet we can cut down our communication costs drastically. Facebook makes it easy to send messages either through wall profiles or directly at their inboxes.  With this you can save money rather than sending direct text messages or sms. Skype has an extensive network all over the world. With Skype you can make free online calls from Skype to Skype. Using other companies like Yahoo, MSN messenger also provides free calls on their services. These services drastically reduce your communication costs when you want to communicate with friends and family.

Group travelling

You will be able to get group discounts if you travel as a group. You can start saving money as soon as you leave your home country. Some airlines offer group discounts and you will get better rates rather than travelling alone. Also hotels and hostels offer group discounts. Going with a group of friends enables all of you to get more value for your money. Apart from it being more fun it will also be cheaper.

Locals

The natives of the country are a huge resource of information. Although some might use your for cash, there are those who are good and will advice you on the best places where you will get value for your money. They will take you to the cheaper shops, restaurants and hotels. In some case you will be able to save money if you stay with them. The local people as your friends will help you navigate the cities and give you the best budget deals. Use public transport to move around, like buses and trains as opposed to using taxis and chattered cars.

Tourist areas

Tourist areas are known to be the most expensive areas. You should avoid such areas as they will reduce your budget drastically. The prices for everything in these areas are normally inflated. Buying goods and services in these areas is not a good idea as you won’t be able to sustain your stay. Exchanging money at the airports is a bad idea as the exchange rates there are unfavorable to you.

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You have your first job, you’re making your own money and paying your bills – its official, you are an adult. However, young professionals do not have the same financial needs that older ones do, and as a result they need to consider the unique aspects of their situation when making financial decisions.

Sound Advice for Young People

If you are a young professional, changes are you are more focused on getting a good job, keeping that job, and advancing your career than you are on managing your money. You don’t have time to read every magazine, book, and blog to find the best financial advice, but here are some of the most important things you should know.

Understand where you are financially.

The first step to getting smart about money is to understand the big picture regarding your finances. This means more than knowing your salary and your rent; to get a full understanding of your position, you need to know the following:

-          Income, both before and after taxes

-          Fixed expenses such as rent, utilities, a car payment, and insurance

-          How much you are spending on nonessentials such as personal care, food, vacations, and eating at restaurants

-          Debt including student loans, financing your car, and credit cards

-          Interest rates on debt

-          Your company’s 401(k) plan, or similar

Take Action

Once you have a good idea of where you stand with your money situation, you can develop a plan to both improve your financial management and begin preparing for the future.

Some things you can do to take action are:

-          Start saving now. Even if you are not sure what you are going to do with the money, get in the habit of setting at least 10% of your post-tax income aside in a separate savings account – that’s about $60 a week if you are making $30,000 annually.

-          Keep an emergency fund. You never know what may happen tomorrow; having cash accessible will make it easier for you if you are in an accident, get sick, or lose your job.

-          Set a budget and stick to it. You’ve figured out what you spend money on, now take control of your spending.

-          Stop using credit cards. Unless you are paying them off each month, credit cards are part of a debt cycle that only gets worse. Get in the habit of paying in cash.

-          If you have excessive debt, develop a plan for paying it off, starting with the highest-interest debt first.

-          For more information and specific goals, consult a financial planner experienced with younger clients. They will be able to help you determine if an IRA or other investments are the right choice for you.

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You’re probably wondering what ‘Renting a Room’ has to do with being a money saving tip. My view is that when times are tight and uncertain as they are currently. We all need to consider the different opportunities available to us. Looking at how much we are spending and saving is important. Taking full advantage of our resources in order to make an income from any asset that we own is worthy of consideration. So if you have a bedroom that is empty and not occupied and you are struggling to pay your mortgage or your bills. Then by renting out a bedroom for an income can help relieve your finance and possibly keep you out of debt.

Taking in a lodger is inconvenient but compared with being in debt and possibly losing your home because you cannot pay the mortgage is tragic.  There is a tax break for renting a bedroom out to a lodger.  This tax-free break means that you can rent a furnished room in your home to a lodger for £81.73 per week or £4,250 per year without paying tax on the income.

There is a special exemption within the tax regulations that allows the first £4,250 earned from renting out a room in your home to be tax-free. If you have an up-market home then you could of course charge more per week or year and you would only be liable to pay tax on any earnings above £4,250 per year. You should take a deposit from your new lodger and a months’ rent upfront and write down your terms and conditions of renting a room out.  I would ask a solicitor to draw up my agreement to cover myself and my home and family.

There are websites around that advertise ‘rent a room’ or ‘house shares’ if you are struggling to find a lodger. The best way to find a lodger is to ask people you already know like friends, family, workmates, club members, members of your church congregation, etc. Make sure that you take references and do carry out due diligence on anybody that you are thinking of allowing into your home as a lodger.

There are government websites and the citizen’s advice service, where you can find out more information about renting a room in your home.  Please check each year to see that this special tax exemption has not changed. It’s not the best solution but if it means that you can ride out this eminent recession then it is worth considering. Losing your home is not an option. Most of the people who struggled through the last Recession needed an extra £20 to £40 per week to keep the wolf away from the door. Well here is an £80 a week tax-free income tip to surviving the recession.

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