Christmas is coming...is your budget prepared?

Aaahhh....can you believe how quickly Christmas will be here and the costs involved in meeting everyones perceived needs? I say perceived, as we live in a very affluent country and really have very little 'need' but lots of 'wants'. It is not worth going into debt for 'wants' or because 'everyone' has one. Lets be sensible and stick within our means this year, so that we can afford to pay for the higher costs of living in 2011.

For a budget conscious Christmas why not try out a few of the following gift ideas:

• Do a serect Santa with a set a pressie limit
• Give to someone in real need by purchasing from a TEAR catalogue or Salvation Army catalogue ( a little goes along way in India and Africa)
• Give an unwanted or unused gift you have at home (make sure it does nnot look second-hand) - it is far better that someone else enjoys the item than having it clutter up your home!
• Make a gift of cookies, slices or cakes
• Give of your time instead of money
• Stop buying gifts for aquaintances, long lost cousins etc - we don't have to keep up with the Jones'.

Pay Yourself First!

This is not a new concept at all.......

You will be surprised at how easy it is to live off less when you pay extra into your loan / credit card debt as soon as your pay comes in. If you wait to see what is left over, you will have nothing (because we tend to spend what we have rather than put money aside first and live within our means).
I challenge you to do it!

I have reviewed our finances and will be placing my CPI payrise into our loans....this will see us payoff one loan in 12 months and then what was going into that loan will go to the mortgage (we are talking over $100k here) and this will get paid off in 4 years...so long as no financial crisis hits us of course.

Anyway, we have a goal to work toward...what is yours?

Budget Tip of the Week

Rethink through one of your financial goals (I just did)!
Instead of spending your CPI payrise, put that money into your loan / credit card debt.....it will add up and make a difference. By doing this you will see your debt reduce and this will bring you hope.

My Budget Worksheet

I have been working on a tool that can not only help me and my family, but can also help my friends and YOU!

Please don’t groan when I tell you……. What is it you ask?

I have been working on and ‘tweaking’ my own household budget book……okay, it is not really a book but more like an income / expenditure tool that can be placed in your handbag, briefcase or on the kitchen table. It for those of us who like to use paper and not computers for managing our budget.

For practical use it opens up no more than an A4 size and folds up to fit easily in your diary or wallet.
It is designed to be used simply and quickly with the columns giving you enough space to enter in your expense immediately.

If you would like to know more about where your money is going, just ask me.


        

Budget tip of the week!

Learn to say NO!

You don't have to say 'yes' to every spending thought that comes to mind. Don't buy the chocolate bar or chewing gum from the service station when you fill up with petrol.....instead, put that money into a glass jar and watch it grow. That money can go toward a bill or extra payment to your mortage....every cent does count!

Budget tip for the Week

Interest rates didn't go up...yeah!
So now you have another month to curb your spending and save the $20 - 50/week that would have been needed to pay for the rise in your mortgage. Use the reprieve we have been granted and be wise with your budget.

Holiday on a budget

WOW! Did I have the best and cheapest holiday ever. All thanks to my mum! My mum took me back to  my birth place - New Zealand. It  was a dream of hers come true (to take me back one day) and I loved seeing where I was born.

We ate so well - shared our lunch and dinners as per my tip of the week - stayed in great accommodation and drove to wonderful locations - Auckland, Hamilton, Lake Taupo, Rotarua & back to Auckland. All I had to pay for was souveniers and chocolate.

I hope to do that for my daughters one day. Then they too can have a holiday on a budget.

Budget tip for the Week

When dining out SHARE YOUR MEAL. Sharing a 2 course meal (entree & main or main & dessert) will save you dollars and pounds!

New Years Resolution

So, how are you going with your New Years Resolution? We are now in our 3rd week of 2010 and I wonder if anyone has started a budget work sheet or commenced writing down your income and expediture? I have....I have RESOLVED to do this again this year. I will use money as a tool and not let my money tell me what to do. I have created a budget worksheet, which any household can use, and it is exciting to know exactly where I have spent my hard earned money.... then I can pull in the reigns if needed or reward myself as my financial goals become a reality.

Will you walk the talk or talk the talk?? Yes it will be difficult, but be strong; strengthen your inner man and resolve to make a difference this year! You can do it....one day at a time, one spending decision at a time.

Have you made a budget yet? The most difficult part is starting! Do this by:

1)   Listing all your living expenses - go through all your past bills, statements etc and record what they are eg: mortgage / rent, phone, electricity, rates, groceries, petrol / travel fares, school fees, extra-curricular activities, holidays, vet, incidentals etc...

2)   Source how much you spent on each living expense for a 12 month period and divide each one by 52 (this will give you an indication of what is required for each living expense on a weekly basis), or by 26 for a fortnightly amount.

3)   Repeat process for your income.

4)   If your income is less than your expenses, you MUST look at what you can trim from the budget eg no daily spending on coffee or magazines, cut down / quit smoking or drinking; holidays will be a luxuary rather than a need.....all of this of course depends on your financial goal and what you consider to be important. No one else can do this for you, but help is available if you need it.

5)  Record all expenses - daily is best, so that you don't forget (we have such short memories when it comes to money leaving our wallet).

6)   Start allocating your income into envelopes (marked Bills, Groceries, Petrol for example).

7)   Pay cash....don't use the credit card(s), this will only cause you to go backwards.

8)   Say NO! You don't have to have everything straight away.

Make a start today...the sooner the better and establish some good financial habits.