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Where Money Really Does Grow on Trees
Scott Reynolds
Scott Reynolds
Jun 17, 2010

envelope

In a personal budget all sources of income are identified and expenses are planned. One way of budgeting originated during the Great Depression. It’s called the envelope system. Basically, for every bill or expense you have you dedicate an envelope to it with the estimated amount written on the front of the envelope. Once you have funds or get paid you put that amount in cash into the envelope. Once the expense is due you take the money out and pay the bill. If you do this for all of your expenses there is no confusion between amounts owed for expenses and other monies in your bank account. Hopefully, by identifying your income and expenses you can also be inspired to save some money for emergencies, or even long term savings goals.


Scott Reynolds
Scott Reynolds
Jun 10, 2010

tighten belt

You may not think it possible especially these days, but some families either by choice or by the loss of a bread-winners job, live on one income. In reality a family living on one income can be more financially stable than one living on two. The reason is if one income is lost due to the loss of a job the two income family would be in trouble, or at least need to make major adjustments until a new job was found. Most two income families live within those means, but have become accustomed to that two income lifestyle and need that income to cover their basic needs like mortgage, loans, and credit cards. A one income family has already made those adjustments. Regardless, the first step is creating and strictly sticking with a budget.

Where things really get interesting is when you have two incomes and continue with two incomes, but budget yourself to live in one. This takes a lot of planning and potentially a lot of cuts, but that’s when you really begin saving and paying off major debts like mortgages.  For most people once you have paid off your mortgage, the rest is very manageable.


Rich
Rich
Feb 22, 2010

help_wanted

I have been reading today and based on some of my research on my other blog posts, it sparked a question that I wanted to put up here for discussion:

How do you distinguish between your wants and needs?

I know a lot of us feel that some of our wants are in fact needs but what really drives you to know the difference? We had discussed about keeping a journal or diary of your spending for a month or two have you had any success?

Photo Credit: swanksalot

Feel free to comment, I am just trying to see how you stand with your financial goals!!


recession_culture

Since the economy started doing so poorly, citizens like you and I started saving instead of spending. The actual numbers are that people were saving about 1% of disposable income and that jumped to 5%. Since the economy is returning it has slid to about 3% of income. This economic situation has made people aware of the need for savings. The important question is:

How many of you will only make this a goal for a short time until you feel comfortable with your job situation or the value of your house starts to climb back up?

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tax_return

Well, it is that time of year when we gather our W-2s, tax receipts, and scraps of paper we kept in a shoe box all year long to file our taxes. If you are one of the lucky ones you may even get some money back from the government (not that is good either, since you overpaid the government in the first place, but that is another story).  So what should you do? It is no wonder that tax season happens to fall near the Super Bowl and all the great commercials eliciting visions of flat screens and new cars are dancing in your heads.  But is that the wisest thing to do?

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Derek Allen
Derek Allen
Jan 28, 2010

money_plate

Less Consumption

Perhaps the most common way these two processes are related is by consuming less. The basic fundamental associated with both involves using less. The first step to saving more money is to identify places where you can cut back spending. One needs to eliminate any unnecessary spending from their budget in order to create a good source of funding for a savings account. It is simple mathematics. Spending less than your earnings will result in surplus you can save. And spending more than you earn will create a deficit that will put you into debt. It seems simple enough, but unfortunately it is often not that easy to accomplish. It involves breaking a natural habit of spending that has been shoved down our throats through marketing and advertising our entire lives.

The first step to losing weight is cutting out foods that are negatively impacting your diet. Cut out fats, sweets, greasy food, and sugary drinks. It is the same principle as before. Taking in less calories than you burn will help you lose those pounds. But, eating more calories than you use will increase your weight. Just as with spending money, it is a habit you have to break. Consumption has become a part of our daily lives and is a hard habit to break. It is a lot easier to pick up a cheese burger during our lunch break than it is to pack a homemade salad in the morning; not to mention probably tastier as well. Breaking the consumption habit that we are overexposed to is not easy to do and takes a considerable amount of determination and willpower.

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Maria Hinson
Maria Hinson
Jan 20, 2010

cash_coupon

I will never forget the day that I saved $203 using grocery coupons and taking advantage of store specials.  Although it was four years ago, I remember it like it was yesterday.  I was on a mission -I walked into the store prepared with the week’s grocery ad and matching coupons for the items on sale already clipped and separated.  I went up and down the aisles, buying the items I had matched with my clipped coupons.   (This particular store also had several Buy One Get One Free specials and doubled coupon face values, which added to the savings).  The total for a cart full of food was…

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It is common to worry about  paying the bills every month and if you are struggling to pay the bills, how would you be able to save?  How do you save for your retirement or a vacation or that new flat screen TV?  I want 2010 to be the year you really put down some goals for yourself financially to make the changes you need.  I may not be the most eloquent writer, but I would like to share a few steps I have used in paying myself first.  These steps are not rocket science, but they will make you aware of your spending habits so that you may develop an achievable savings plan.  Take a look and seize the opportunity to make positive changes in your finances this new year.

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Joe Gaudino
Dec 08, 2009

Like most things in life that are not easy, setting a specific and achievable financial goal helps you to focus your energy and activity more effectively. It takes about ten minutes to complete the MyMoneypower Program Assessment and establish a monthly MoneyPower Goal. For most people, achieving the goal means finding ways to save money by reducing costs. For example if achieving your goal requires you to reduce costs by $50 per month, you can focus on small adjustments in your spending patterns to make that happen. We are creatures of habit and finding $1.66 per day in savings is not hard. On the other hand if your goal requires you to reduce spending by $800 per month you will need to focus on larger more difficult changes. In some cases you have to focus on savings and also on supplementing your income to achieve your goal.


Rich
Rich
Nov 17, 2009

Savings

I have seen this before as it has been floating around the internet for years, some financial advisers even use it when they are discussing and establishing Savings accounts for their clients. It is a philosophy about your psyche – savings is just like going to the gym – to make you feel better and how you project yourself to the world. Enjoy - Rich

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