Finance

6 Benefits of Budgeting Your Finances

by Benjamin Roussey|Posted on | 3 minute read | Advertiser notice
budgeting your finances

Budgeting is non-negotiable when you want to manage your money judiciously. While budgeting is not perfect and will not solve all your financial woes, it is crucial to have a healthy financial life.

Many people mistakenly assume that budgeting is something you do when you are strapped for cash and living paycheck to paycheck. Not quite, budgeting can actually help even when you are making a significant amount of money. It can help you make the most of every dollar and enable you to save money that you would not otherwise be able to.

Prevents You from Overspending

Failing to plan for your financial well-being can make you susceptible to overspending. If spending is a problem for you, start working with a budget. When you know how much money you have coming in each month, you can see if there are any areas where you’re overspending without realizing it.

For example, when you put together a monthly budget, it might become clear that there are extra monthly charges on your credit card bill — maybe because of subscriptions or memberships that could be canceled without affecting your life too much. Using a budget to help direct your spending will ensure that the majority of your paycheck is applied towards paying off debt rather than simply being used on a whim.

Helps with Long-Term Savings

Saving for the future is an admirable goal that most of us have at some point. When you know exactly where your money is going each month, saving for more significant expenses like vacations or down payments on homes becomes easier. You can also set aside money for emergencies or unexpected costs that might come up during the year — like car repairs or medical bills — without having to rack up credit card debt to pay for them.

Makes Saving Easier

Today’s lifestyle makes it hard to save money because so many temptations and luxuries get in the way of our goals. People without a budget tend to spend more than they earn. By finding multiple areas where you can cut back, you’ll have more money to put away in savings.

You can have your money automatically withdrawn from your checking account into an investment plan or savings account. You will eventually achieve your financial goals by consistently saving a portion of each paycheck which is awesome during these high inflation times.

Offers More Flexibility

The great thing about budgeting is that you don’t need an exact idea for every expense when it comes to financial planning. If you only have a ballpark idea of your finances, you can develop a budget to help guide your decisions in the coming weeks and months.

There’s no reason to wait until you’ve got everything figured out to start working toward your goals—you can develop a budget based on your best guess and factor in any changes as they occur. It’s not going to be perfect, and that’s okay.

You can adjust your budget as new information comes in and as your circumstances change. The important thing is that you have a budget—it helps ensure you’ll be able to stick to your plans, even if some details are flexible.

Accelerates Your Financial Independence

Many people get frustrated with budgeting because they see it as a chore, but it is really an exercise in setting and achieving goals. When you start thinking about your monthly goals within the framework of budgeting, you can more easily set effective budgets and reach those goals faster.

For example, one of the most common financial goals is to save up to buy a house. To accomplish this goal, you first need to set a specific dollar amount that you want to put towards buying a home every month. Then, you need to create a spending plan for everything else in your life so that when it’s time for you to put money towards your house fund, there are no holes in your budget which is critical when gas prices are so unappealing.

Gives You Greater Control of Your Money

It’s easy to feel out of control with your spending when you don’t know what you have available. You can bury your head in the sand until it’s too late, or you can put a budget into place and make a plan for your financial future. To plan properly, you need to know what is going on with your money today.

Budgeting lets you see your income, spending, and expenses on one simple number. Once you have this number in hand and can see where your money is actually going, you’ll be able to easily adjust your budgets and expenses as needed to get more of what matters most out of life.

Money

9 Ways to Spend Your Money Wisely

by Benjamin Roussey|Posted on | 3 minute read | Advertiser notice
spending money

Are you expecting to receive some money? What are your plans for it? You can always splurge these surplus funds on a luxury trip or buy an expensive gadget. But there are smarter ways to spend your money which will give you both peace and happiness. These are a few options for you to consider.

1. Get Rid of that Pesky Debt

One of the best ways to employ money you didn’t expect is to use it to pay off your debts. This can be student loans, regular bills, or credit cards. Debt repayment is really the best return on money. Typical credit cards carry a 15% interest annually. You could save that amount and make your wealth grow by paying off the cards.

2. Spend it On Job Training or Education

You are the greatest asset to invest in. Job training and education are more often than not required for personal and professional growth. You may finally get that promotion you were eyeing by completing that certification. People that love their jobs and are satisfied with their career growth tend to be happier.

3. Build Your Emergency Nest

It can be a true nightmare to have to pay for a major expense when you least expect it. But, there is nothing you can do to prevent emergency situations. If you have a medical bill or a car repair, you will have to pay for them. You can use your additional money to create an emergency fund.

You should also think about making monthly contributions to the emergency fund. Tax refunds are the best way to jump start savings funds. Think about your emergency funds as buffers. You can also earn some interest by parking the rainy-day fund in a savings account.

4. Spend Freely on Hobbies

When was the last time you entertained yourself actively without looking at a screen or doing something where content was shoved down your throat? There are times when you want to Netflix and Chill, but you should consider using the extra money to pick up a hobby.

Think about whatever you like and invest in it. It could be purchasing a new music instrument, enrolling into language class, buying tools to finally build that tree house or new utensils for baking.

5. Plan a Vacation

You should have at least one decent holiday in a year. This is to keep you healthy and happy, both physically and mentally. Holidays are expensive. But, you don’t have to mess up your financial goals. You can utilize a little bit of the surplus fund or use the entire amount to pamper yourself and your loved ones.

6. Make the Money Work

You may consider investing in financial markets. You can create a comfortable retirement fund by starting right away. It is never too late to start planning for the future. Here’s a tip – never place all your money in individual stocks if you are not a diligent investor. Instead, you may want to play around using exchange traded funds and mutual funds to spread the risk a bit because in this violent world with crime going up – we are all already taking enough risk.

7. Buy Those Healthy Meals

Healthy food costs money. If you have the cash, you should consider taking a step in the healthy direction. Go organic. While you are at it, you may want to buy a gym membership as well. You will automatically start feeling better when you eat healthy. Health is something nobody really appreciates until they lose it. Using your money towards taking care of your health is a poignant way to spend it even when food costs are going up.

8. Go Have Fun

Live a little with your windfall. You are allowed to have fun. But, before you think about spending it on stuff, ask yourself whether you really need more stuff. Won’t you rather spend the money on experiences? Maybe take a rollercoaster ride at the local fun park or throw a party for your friends. You could also just use it at a spa to give yourself a memorable experience.

9. Visit Friends and Family

Satisfying relationships and happiness are correlated. But, it is expensive maintaining good relationships with family and friends. We all have family members or friends that moved away and never visited again. You still love them. You are still in touch with them through digital mediums. Why don’t you go visit them?

Money

9 Worthwhile Ways to Spend Your Money

by Benjamin Roussey|Posted on | 3 minute read | Advertiser notice
Spend Your Money

It can be tempting to spend all your money on a fancy new something or a big night out. However, there are several smarter ways of spending the cash you have. You may want to consider the fact that the way you spend your money may affect the level of your happiness. You may think that buying that large screen TV or a bigger car is a worthwhile purchase, but it may not provide you the most smiles for your buck.

These are a few worthwhile ways of spending your money.

1. Pay off Your Debt

The best way to spend your money is often the easiest and something that will help you in the long run. You should pay off your student loans, credit card debt, and other bills which may have increased during the Covid-19 or Wuhan virus pandemic. Debt repayment often offers the best return on money. You need to know that the typical credit card may have a 15% interest in a year. This may not seem like the most exciting way of spending your money, but you would appreciate this in the long run. It is a win-win situation to not think about paying more interest while reducing your debt.

2. Spending on Hobbies

Passive forms of entertainment will only get you so far. You may want to relax in front of the TV (Bosch, 24, Ray Donovan) sometimes, but you shouldn’t be habitual of it. Try spending more on yourself and in developing hobbies. You can always buy board games, tools, or a musical instrument to get the creative juices flowing.

3. Spending on People You Love

Money can buy a lot of happiness as long as you know the people you want to spend it on. Satisfying relationships, happiness and gifts are strongly correlated. It can be expensive maintaining relationships with family and friends. For instance, if your family doesn’t live close to you, you could seriously drain your savings visiting them which is not good when energy and food prices are increasing because of current policy. Being invited to an offbeat wedding is another way of losing a lot of money.

4. Spend on Job Training or Education

You are the greatest asset you can invest on. Job training and education are often essential for getting the job you want. This may also help in seeking promotions at your current work. You may find this obvious, but if you are satisfied with your job, you would anyway tend to be happier.

5. Purchase Sporting Goods

Exercise and happiness go hand in hand with one another. It is scientifically proven that exercise releases endorphins and other chemicals in the brain that makes you feel good. Additionally, being physically fit is just going to make you feel better on top of regular prayer.

6. Taking a Vacation

Everybody requires a decent holiday at least once a year. This is to ensure that you break the monotony. However, you should know that holidays can get expensive really quickly. Your financial goals may get messed up if you don’t plan for the vacation. However, holidays are one of the best ways to spend your money on.

7. Eating Healthy

Healthier food is definitely more expensive than regular food. But, this is an expense that makes sense. You would feel better when you eat healthier making the additional payment worthwhile. Health is something you would miss only when you are not longer fit. It is better to be proactive and take care of yourself.

8. Saving for an Emergencies

Another way you can make use of extra cash is by creating an emergency fund. Life doesn’t always work out the way you hoped it would. By creating an emergency fund, you can have access to quick cash whenever you need it. The minimum amount you should put in your emergency fund should be at least $1,000. The average person needs this kind of money if they are without work.

9. House Remodeling

Investing in your home will bring you the same happiness that investing in yourself would. A house is one of the largest financial assets that a person may own. You could use any money you have saved up to beautify the outside of your home. You could also add energy efficient features to your house. Improving your home is a sound investment and will increase the quality of your life. This can improve your financial future by boosting the resale value of your house and perhaps even make a friend or relative a little envious along the way! Nothing wrong with that!