7 Money Saving Tips On A Budget

If you are on a budget and looking for ways to save extra cash, here are a few tips.

1. Eat breakfast at home instead of buying it on the way to work. Make your lunch and take it to work or school.

2. Swap soda for tap water at work and at home.

3. Eliminate trips to the vending machine during your breaks, Instead, bring a snack from home.

4. Declare an embargo on new toys. Wrap up some out-of-favor toys and put them away for a few months, then take them out of storage with much fanfare, and retire another set. Swap toys with friends.

5. To compare prices and save gas and time, shop online. Buy only what you're looking for, and don't forget to add in shipping charges when comparing prices.

6. Trade in your pricey car, with monthly payments you can't afford, for something reliable and reasonably priced.

7. If you are tempted to buy a new gadget or piece of clothing when shopping, go home and sleep on the decision.

The Right Approach To Buying A Car To Save Money

So, you have your heart set on a new car? As with buying a house, you won't be expected to pay for the whole thing up front. In most cases, you will need to save up the down payments. This is usually 10% of the car's price, though this may be less if you trade in your existing car. Doing your homework ahead of time so you know what you can expect to pay to pay, then making a smart decision when it comes to leasing or buying, new or used, can save you money down the road.

A lease is usually the best bet if you like to trade in your car every couple of years. Some leases do not require a down payment, instead, you pay a set monthly amount. At the end of the lease, you return the car and owe nothing, or you can buy the car.

One of the best ways to save money is to buy or lease a solid used car that's at least 2-3 years old, instead of buying a new one. The down payment, monthly payments, and insurance are often substantially less for a used car.

Whether you decide to buy or lease, you can save a lot of money if you negotiate the price. The sticker price does not reflect the bottom price that the dealer will accept,so bargain hard. Once you know the true cost of the car you want to buy, call around to dealers and start bidding.

With this strategy that I have mentioned, getting a new set of wheels will cost you much less than you thought.

4 Tips On Saving Smart While On A Budget

You've been sticking to your budget for a while now. You're easing your debt burden and starting to break even. Or, even better, you're out of the financial woods and starting to see a little extra money at the end of the month. Well Done! This is why you set up a budget in the first place, to break down the cycle of spending and to start saving toward your goals. You can boost your saving potential even more using these time-tested tactics:

1.Put your money toward your savings before anything else; In other words, pay yourself first. This advice, spouted by every financial guru worth his or her weight in above-average market yields, still reigns supreme. Think of your monthly saving commitment as a fixed expense that must come out of your paycheck immediately, just like your rent or mortgage payment.

2. Don't keep increasing your standard of living; Most people live up to their income. That is, their expenses rise to their level of income, no matter how high their income is. A smarter savings strategy: Next time you get a raise or a promotion, pretend that you didn't. Bank those extra bucks instead.

3.Once you have started saving, stick with it; Even when unexpected expenses crop  up, don't raid your saving account to pay for them. Figure out another way to pay for those new expenses.

4. Start saving as soon as you can; Here's why: Your money grows through a process called compounding. That is, you earn interest on your original investment and, over time, you even earn inerest on your interest. The key to compounding is time. If you put your money in a secure investment, the longer you let your investment compound, the larger your savings can grow. That's why starting to save early can make a big difference.a

3 Tips To Live By Using Credit Cards

A credit card is very convenient. It is easier to carry around than cash. Here are 4 Tips you need to live by with credit cards.

1. Pay off your balances each month: It doesn't matter how  many purchases per month you make with your credit card.  Just be sure to pay those balances off in full. If you can't pay off the entire debt when the bill arrives, plan to pay it off in no more than three payments. Otherwise, put off the purchases until you have stockpiled some cas

2. Take out a cash advance only if it's absolutely necessary: If you need money in a hurry, taking cash advances against your credit card is probably one of the quickest ways to get it. But it is also one of the most expensive forms of borrowing. Interest rates are often higher for cash advances than for regular purchases. And many issuers charge an additional "cash advance" fee. What's more, there is generally no grace period. Unlike purchases, cash advances accrue interest charges immediately.

3. Keep things simple: Limit yourself to just one or two credit cards, such as a Visa, a Mastercard, or an American Express. Ask yourself, do you need the others.

Budgeting For Unexpected Expenses

Once you get the hang of tracking expenses, monthly bills are relatively easy to monitor. Unfortunately, all expenses don't fit into neat, monthly categories. Lawn care bills are high in spring and summer months, nonexistent in cold weather. Likewise, you usually get hit with hefty bills for heat in winter only. And your car insurance and life insurance payments are typically paid once a month. Because you don't pay these bills monthly, it can be easy to overlook them when figuring your expenses.

Even if you do remember to plan ahead for expenses like these, they can be easy to underbudget, and this is one of the main reasons why many budgets fail. Take home renovations, for example: They often end up costing more than expected. And vacation: Many people set aside money for the trip itself-airfare,hotel, and meals. Often,though, they forget costly incidentals that are part of every trip: souvenirs,T-shirts,admission fees at museums and parks, and the never ending flow of soft drinks and ice cream cones. Un less you set money aside for these periodic and unanticipated expenses, or have cash reserve funds to draw on you may be forced to put these bills on a credit card.

Finally, there are the unanticipated or unplanned-for expenses which are even harder to budget for. The car breaks-down. Your son/daughter needs another gift for a birthday party. Your brother needs a loan. When figuring your expenses, you can create a separate "slush fund" for such surprise expenses and assign a resonable estimate.

The Right Attitude About Budgeting

What's the secret to setting up a successful budget? Grab a pencil and some paper and get started. That's it. The obstacle that keep most nonbudgeting people at bay is simple procrastination. Many people, especially those who seem to need a budget most, just can't find  the time or energy to start tracking their spending and forecasting their expenses.

Having the proper mindset about budgeting can help you get over this procrastination hump. Don't think of a budget as a strai-jacket; instead, consider the reasons a budget is good for you. For example, a budget will improve your financial security. It will help you pay down your debt. It will help curb impulse spending. It will also help you learn how to set, and reach realistic financial goals. In short, it can do wonders to improve the quality of your life.

Having the right mindset also means believing that drawing up and maintaining a budget is not beyond your capabilities. Forget the advanced mathematical calculations that you think are required. You will need basic math and that's it.One wonderful thing about budgeting is that it gets easier over time. The longer you use a budget, the more skilled you become and the less time you will need to manage it. The longer you use a budget, the more likely it is you will keep at it. The longer you keep a budget, the more you will wonder how you ever survived without it. The bottom line is once you get started, a budget is easy, so get started today.

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How Much Are You Worth Financially

Now that you've determined your cash flow,it's time to figure out your net worth. What is this? It's what you own,such as your house,car,savings,and stocks (known as assets),minus what you owe,such as your mortgage,car loan,student loans,and credit card debt (known as liabilities).

What's the point of such calculation? Think of it as an annual physical exam,except this test measures your fiscal fitness.While your cash flow tells you how much money comes in (your earning) and how much money goes out (your expenses),you net worth tells you what kind of financial shape you are in overall.And this will help you set realistic budgeting goals.Foe example,if you have a positive cash flow but a negative net worth (due to car loans and credit car bills),a good budget will help you direct some of that extra income to paying down your debts and building financial security.

Calculating your net worth is important for other reasons,too.You'll need to this information when applying for a loan,writing a will,or buying insurance.Lenders,for example,will check your debt-to-income ratio when you apply for a mortgage.And universities ask detailed questions about parents' assets and debts when a teenage applies for college financial aid.Your net worth also serves as a benchmark with which to compare your financial progress.Do you have more credit card debt today than you did 10 years ago?Has your home increased in value?Have you borrowed against your assets?Your goal,naturally,is to raise your net worth over time,which a budget will help you do.But before you can draw up this all-important budget,you must first have a clear idea of what you own,how much it's worth,and how much debt you currently owe.