There are few things in life more stressful than encounter financial troubles. These monetary issues cause personal stress, as well as creating friction in our personal relationships. So even if you simply want to live for today, you might find that your life is actually a bit more enjoyable if you also save a little bit toward the future. Consider the following suggestions when you plan your family budget.
Before you plan out a budget, you need to know what you are dealing with as far as income and outgoing money. So list your total income as well as all of the expenses you incur each month. This list should include everything, from obvious items such as rent and car payments to your utilities, cell phone expenses, entertainment expenses, food expenses and all the rest. Go over your bank statements as well as your credit card statements so that you don't leave anything out. You might be surprised at how much you spend and on what you spend your money.
Once you have all of your expenses listed, take a look at how much disposable income is left over. If it looks pretty scant, you might want to find ways to cut costs. Many people waste a great deal of money each year because they have credit card balances that aren't paid off each month. Interest rates on most credit cards are sky high, so you lose hundreds of dollars, if not more, each year, when you don't pay off those credit cards. Once you have them paid down, consider getting rid of most of them, and just keeping one card that has a reward system particularly suited to your needs. Even with this single card, limit your purchases and try to use cash whenever possible. That way you can only spend what you actually have. It's all too easy to charge now and think about the cost later.
There are so many other ways to cut your monthly expenses. Eating at home and packing a homemade lunch can help you save a great deal of money, and you can make this even more cost-effective by planning your meals and buying only the food you need rather than buying items on impulse. Other easy ways to cut expenses include taking a good look at your cable and cell phone costs and seeing if you can switch to a more cost-effective package. Bundling your internet, phone and cable also can be a way to reduce costs. You also can conserve your energy use and save some money there.
When it comes to saving, if you aren't putting away about 10 percent of your monthly income toward the future, then you need to start now. If your company offers an IRA (Investment Retirement Account) or a 401 (k) plan, take advantage of these types of retirement accounts. If your company doesn't offer these options, go to your bank and ask someone to help you set up an IRA or retirement account.
Another option, or an option that can be combined with our retirement account savings, is to consider investing in different types of mutual funds. These funds allow you to take advantage of potential earnings in the stock market at much lower risk than you would incur were you to buy stock in just one or two companies. A mutual fund includes investments in many different holdings or companies to help minimize the overall risk. There are many types of mutual funds, from those that invest in a particular type of industry, such as a technology fund or an energy fund. Other funds invest in particular area of the world, such as a China fund or perhaps a South America fund.
Before you plan out a budget, you need to know what you are dealing with as far as income and outgoing money. So list your total income as well as all of the expenses you incur each month. This list should include everything, from obvious items such as rent and car payments to your utilities, cell phone expenses, entertainment expenses, food expenses and all the rest. Go over your bank statements as well as your credit card statements so that you don't leave anything out. You might be surprised at how much you spend and on what you spend your money.
Once you have all of your expenses listed, take a look at how much disposable income is left over. If it looks pretty scant, you might want to find ways to cut costs. Many people waste a great deal of money each year because they have credit card balances that aren't paid off each month. Interest rates on most credit cards are sky high, so you lose hundreds of dollars, if not more, each year, when you don't pay off those credit cards. Once you have them paid down, consider getting rid of most of them, and just keeping one card that has a reward system particularly suited to your needs. Even with this single card, limit your purchases and try to use cash whenever possible. That way you can only spend what you actually have. It's all too easy to charge now and think about the cost later.
There are so many other ways to cut your monthly expenses. Eating at home and packing a homemade lunch can help you save a great deal of money, and you can make this even more cost-effective by planning your meals and buying only the food you need rather than buying items on impulse. Other easy ways to cut expenses include taking a good look at your cable and cell phone costs and seeing if you can switch to a more cost-effective package. Bundling your internet, phone and cable also can be a way to reduce costs. You also can conserve your energy use and save some money there.
When it comes to saving, if you aren't putting away about 10 percent of your monthly income toward the future, then you need to start now. If your company offers an IRA (Investment Retirement Account) or a 401 (k) plan, take advantage of these types of retirement accounts. If your company doesn't offer these options, go to your bank and ask someone to help you set up an IRA or retirement account.
Another option, or an option that can be combined with our retirement account savings, is to consider investing in different types of mutual funds. These funds allow you to take advantage of potential earnings in the stock market at much lower risk than you would incur were you to buy stock in just one or two companies. A mutual fund includes investments in many different holdings or companies to help minimize the overall risk. There are many types of mutual funds, from those that invest in a particular type of industry, such as a technology fund or an energy fund. Other funds invest in particular area of the world, such as a China fund or perhaps a South America fund.
About the Author:
Cleveland Jernigan likes writing about investments. For further information about a Renminbi bond fund or to find out more about global energy funds, check out these fund sites now.
This article collected, selected and written by: Author Van Hoc
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