How to Create A Budget for 2008

First of all, Happy New Year to all my readers! I hope it will be a year filled with happiness and prosperity for all of you.

Many of you are making New Year resolutions, and what better way to start the year than with a sensible budget the 2008?

If you are serious about getting out of debt, it is important to create a budget. This will be a guide of how much that person can spend on all areas of their life, such as housing, food, health care, entertainment, etc.

The first step is to write down the monthly income. Next, write down the monthly expenses. This is where people tend to get overwhelmed and start panicking. Not only do the credit cards have to be paid, but the electricity, cable, phone, internet, school activities, car insurance, car payments, field trips and more, have to be paid as well.

If a person is paid twice a month, write down these dates and write underneath it which bill needs to be paid with that check. It is important to plan ahead. If a payment is due at the end of the month, be sure to pay it with the middle of the month check. Do not try to stretch it out and wait. The goal is to pay the bills and be on time.

If there’s a deficit, meaning there’s not enough money to cover all the bills, then think about ways certain items could be cut. In other words, what bills could be reduced to help pay for others that are due?

To help keep them on track, some people find it helpful to carry a small notebook with them to write down their purchases, whether they are made with cash, check or credit card. Tracking expenses, even cups of coffee, can help people see where their money is going and make it easier to identify which things can be done without in order to pay off debt and save for the future.

As you work with your budget, you might be surprised at how much extra money you are able to put towards your bills. Do not get discouraged if you run into a few kinks along the way. It is okay to sit down and reconfigure your budget to make it fit your needs. After all, the point of creating a budget is to find a way to pare down expenses in a way that you can live with.

If you are looking for ways to eliminate your holiday debt, watch this space: I’ll have a report here for you before tomorrow.

How to Save Money on Groceries

I don’t know about you, but I am already thinking about ways to spend less in the New Year. Here are some ways I found useful to save money on groceries: don’t be in such a hurry when going to the supermarket.

• Before heading out, check advertising circulars carefully. Just because it’s advertised doesn’t mean it’s a good buy.
• Shop without kids so you can think.
• Don’t shop when you are hungry. Eat first to avoid impulse buying.
• Take a list and don’t buy anything else unless it’s a food basic or a true bargain.
• If you see an aisle-end display of a product you want, check the price against prices on the shelf. Shelf prices may be lower, say the editors of ShopSmart.
• Buy the whole melon, vegetable, or cheese block. Prepackaged, cut-up selections cost much more.
• Try the store brands. You’ll probably save money without sacrificing quality.
• Shop with cash if you tend to overspend. Stay within your budget by taking just a few dollars more than what you estimate your purchases will cost.

Another way to save on groceries is to plan your meals.

7 Reasons why meal planning is a great idea/

How to Slash Your Grocery Bills

Are You Teaching Your Kids How To Handle Money?

It is up to us as parents to provide financial prowess in teaching kids how to handle money. Here are some tips on how to accomplish this difficult process.

Kids learn by example. If you are in debt, odds are they will be too. You need to teach fiscal responsibility at an early stage. The earlier you discuss money with your kids, the better prepared they will become. Open up a savings account with your kids; allow them to deposit and make withdrawals. Give them the option to use the account in whichever way they decide. By allowing them this freedom to choose, you are also giving them the opportunity to make mistakes and learn from them. Always be there in case they need your advice in this regard.

Give them an allowance. If they run out of money before the following week, do not replenish it. This will teach them about choices: the good and the bad. This is especially true if they are saving to buy something special. If they use their money unwisely, and cannot buy that which they were saving for a valuable lesson will be learned.

Do not spoil your kids by giving them everything they want. Give them just enough money via a weekly allowance and no more. If they choose to buy something you think is not appropriate, discuss it with them. Teach them about the importance of saving money and what they can look forward to as they get older. Give them examples of your own experience as a child, particularly if you had a problem handling money.

Finally, teach them the pitfalls of borrowing. If they ask for money to buy a certain item; inform them they will have to pay it back with interest. Tell them exactly how much they will have to pay back and figure out together how long it would take. Undoubtedly, they may change their mind; but if not, stick to the terms you set. Teaching your kids how to handle money begins with you. Whether you were a saver or a spender, it is incumbent upon you to pass on to your child all the tools he or she needs to make worthwhile decisions now and in the future.

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