Brought to you by: Breez DeGuzman

Whether it’s for your business or personal finances, there’s very little point in having a budget if it is not tailored to meet your needs. If you are trying to make or stick to a budget and having no luck, it may be that you need to make some changes. Here are some things you can try to help your budget work for you.

1. Be flexible
It’s important to understand the significant trial-and-error aspect of making your budget. If you are new at budgeting or trying a new type of budget, be patient with yourself and give yourself time to learn. Be willing to try one thing if another does not work, and to consider making changes in equipment or lifestyle in order to make the numbers add up.

For example, if you find your electric bill is consistently higher than anticipated, you can adjust the numbers or the amount of electricity you use, or invest in more energy-efficient business equipment.

2. Communicate with your family
An important aspect of an effective budget is to include your family. Every family member brings something to the budget process that is important; your budget will work for you far better if you have considered everyone’s income, spending, and input. And be patient with your family’s learning curve. They are probably new at this, too.

3. Err on the side of expenses
In the beginning, there will be some guesswork – over-estimate your spending rather than your income if you need round numbers. It’s always better to discover you have more than you thought rather than less!

4. Don’t ignore your budget
It’s all well and good to prepare a working budget, but if you don’t refer to it monthly it is not much use. In fact, you may want to refer to it weekly or even daily at first, in order to keep track of expenditures (especially cash) that you may not have considered. It’s better to tweak your budget often than experience shock at the end of the month.

5. Remember, it’s *your* budget
When making a budget is no time to try and “keep up with the Joneses.” It’s your budget, not a wish list, and what works for your family or business may not be the same as what works for another.

6. Save, save, save
Yes, you’ve heard this all your life – but when you’re budgeting it’s time to put it into action! Saving should be a part of any budget – life happens, and in an emergency a cash reserve can be a life-saver.

7. Set goals
Remembering why you are doing a budget in the first place is important. Making a bigger profit or streamlining your business? Getting a handle on debt or utility payments? Whatever the reason, knowing why will help you know where you need to cut or increase your spending or income, and will motivate you to keep within your budget.

A budget is a healthy financial tool that everyone can create to fit his or her needs.

Brought to you by: Breez DeGuzman

Planning ahead is key to a successful, affordable vacation.  Once you decide where you’d like to go and what it will cost (check online sources for bargains and travel tips), you can begin saving weeks, months, or even years ahead.  With a realistic budget and a commitment to save, you can take that vacation you thought you could not afford. 

Here are a few tips to help get you started:

* Save your coins

It is amazing how fast loose change accumulates when it isn’t spent.  Decide that you are not going to spend coins of any type when you pay for something with cash, and pay only with paper money (if something costs $3.50, give the clerk $4 even if you already have change jingling in your pocket).  Designate a large, sturdy container that is hard to access (such as a plastic water-cooler jug with a narrow top that won’t accommodate a pilfering hand), and toss in your daily loose change. 

When it comes time to cash in, take the coins to your bank – most banks will put your change through a coin rolling machine for no fee if you have an account with them. 

* Develop and/or review your family budget

You need to see numbers on paper to get a grip on expenditures and income, and to see tangible ways to glean savings.  Review unnecessary expenses and see where you can cut back – if you order pizza once a week, make pizza at home instead; if you eat lunch out during your workday, take your lunch several times a week and put the money you save toward your vacation.  Think of the meals you will enjoy on your vacation because you abstain from eating out now. 

The entertainment budget is another area where cutbacks are feasible – consider cutting back on computer games, cable TV, or movie attendance.  After all, you are saving toward a vacation that will provide memorable entertainment and enjoyment – for each movie you decline to attend now, for example, you are “attending” a show at your vacation destination.

* Over-save by approximately 10%

It’s good to be prepared, and unforeseen circumstances and unexpected fees can take a bite out of the vacation budget and may end up as credit card debt.  While it’s impossible to foresee every possible glitch, over-saving by around 10% will provide a cushion.  And if no unexpected expenses pop up, you’ll have some extra spending money. 

* Turn off the air conditioner and turn on the fans

When it’s not too hot during the spring, summer and early fall months, a significant amount of money can be saved by turning off the central air conditioning (not just raising the thermostat), opening the windows and turning on fans.  Electric fans and even electric window air conditioners use far less energy than central air conditioning, resulting in significant monthly savings you can put toward a comfortably air-conditioned hotel room on your vacation. 

* Sell your excess items

Whether it’s via eBay or yard sales, selling unused clothing or household items is a way to make money where everybody wins.  You get rid of excess clutter and save money toward your vacation, and someone else gets a needed item at a great price.

Once you calculate how much your vacation will cost and how much you can realistically save each month, you’ll know how much time you need to save up for your vacation.  You may be surprised at how quickly you can save.

Brought to you by: Breez DeGuzman

Getting into debt is a very easy thing to do. But getting out of debt is much more difficult. When you let debt get out of control, it can take many years, and often many thousands of dollars, to get it all paid off.

But if you have a plan, getting out of debt doesn’t have to be too painful. Here are ten things you can do to pay off those bills quickly.

1. Rework your budget. We can all find room for improvement. Even small items such as that daily cup of coffee on the way to work can make an impact. Cut the fat and put the money you save toward your debts.

2. Consolidate your debts. If you have a lot of high-interest debt, consider transferring the balance to a low- or no-interest credit card. This will give you one monthly payment instead of many and lower your minimum payment and interest. But you still need to pay as much as possible each month to achieve maximum savings.

3. Negotiate with your creditors. If you’re having trouble making your payments, some will offer lower interest rates and reduced minimums.

4. Talk to a credit counselor. They will negotiate with your creditors on your behalf, and can often get deals that creditors won’t offer directly to debtors. When it’s all said and done, you can make one monthly payment to the credit counseling agency and they will forward payment to your creditors. With their plan, you could be debt free in a fraction of the time it would otherwise take.

5. Pay bills weekly or biweekly. If you get paid every week, send in ¼ of the payment each week. If you get paid every other week, send ½ each time you get paid. This could save you interest, and you’ll end up making an extra monthly payment each year.

6. Sell your unwanted stuff. Most of us have a lot of things just sitting around collecting dust. Many of these items are worth at least a little bit of money, and some may be worth quite a bit. Put them in the paper, have a yard sale or sell them on eBay. Then put every penny that you make toward paying off your debt. This won’t bring you ongoing funds to pay off your debt with, but it will help you put a dent in it and avoid some interest.

7. Start a side business. Even those who work full time can usually find the time to participate in some money-making activities after work or on the weekends. Do some babysitting, detail cars or make crafts and sell them. These activities can generate money to put toward your debt until it is paid in full without the pressures of working a second job.

8. Make money online. You can do so in a number of ways, including taking surveys, blogging or providing services. Use the money you make to pay off your debts.

9. Sell your car. If your car payment is a burden, selling it and buying something more affordable will leave more money in the budget (and more to pay off other debts).

10. Snowball it. This method involves paying as much as possible toward your largest debt until it’s paid off, and in the meantime making only minimum payments on everything else.

When the first debt is paid in full, apply the amount you were paying on it to the next smallest debt in addition to its minimum payment. Keep doing this until your debts are all paid.

Brought to you by: Breez DeGuzman

Budgeting is important for every household. It’s not just for those who are barely scraping by and must make sure there’s enough money to pay the bills each month. Even if you don’t have to watch every penny, it’s important to know where your money is going and make sure you’re putting enough in savings for retirement, emergencies and other needs.

In theory, budgeting is pretty simple. But in practice, it can get complicated. Here are ten tips that can help you gain control of your money and pay off your debts.

1. For the first month of your budgeting, come up with your best estimate of spending. Breaking it down into categories such as entertainment, transportation, groceries and such will help. These expenses are more difficult to predict than fixed expenses such as mortgage and insurance payments, so use any receipts you have and estimate the rest.

2. Keep close track of expenses. The most accurate way to do so is to keep all of your receipts. But if you use a debit card for most of your spending, your bank records may suffice.

3. When the month is over, add up your expenses and see how close your estimates were. This will help you get a more realistic idea of your spending habits. Revise your budget with the new numbers, and see where you can cut back.

4. Don’t overlook the little things. Small amounts of money add up quickly if you spend them every day or several times a week. And these small expenses are often the easiest to live without, so eliminating a few of them can make a big difference in your budget without leaving you feeling deprived.

5. Give everyone an allowance. Each family member should get a reasonable amount of money to spend on everyday needs each week. For younger children, a parent can manage the money. By allocating a certain amount to each person, you can encourage frugality while keeping expenses manageable.

6. Set aside a certain amount for savings each time you get paid, and make sure it goes into savings before any discretionary spending takes place. This way you won’t have to worry about coming up short of your savings goal at the end of the month.

7. Use your raises wisely. Resist the urge to increase your spending just because you have more money coming in each month. Instead, consider putting the amount of the raise into savings or use it to increase your debt payments. You won’t miss it, and this will help you improve your financial future.

8. Avoid overspending when you get a bonus or tax refund. Indulge a little if you feel the need, but try to put most of the extra money toward more noble causes (such as paying off your credit card debt).

9. Become a frugal shopper. Clip coupons and check flyers for sales at your local stores. You can save a great deal on groceries, clothing, hardware and other items this way.

10. When possible, do things yourself instead of paying someone else to do them. We all have unique talents, and putting them to use can save us money. Maybe you can do your own repairs around the house, change the oil in your car, or sew clothes for the family instead of buying them off the rack. All of these things can save you money and leave more in the budget for other expenses and savings.