Budget Planner Template

Using A Budget Planner Template

I recently received an email from John about using a budget planner template.  He wrote:

“Hello, I’m feeling a little lost and have some questions in regards to budgeting and saving.  1. Which budget planner template should I use?  2. From the total salary what percentage is ideal to spend for various needs, and how much to be saved for future?  Any insight would be greatly appreciated.”

It’s a question that we all must answer. Even if some of us would prefer to ignore it! Because, with rare exceptions, we all have to deal with having just so much money to cover all our expenses. And, if we spend more than we take in for very long we get into trouble.

Let’s look at a “typical” budget planner template. Then we’ll discuss it.

Category% of Income
Housing35%
Food15%
Auto15%
Insurance5%
Entertainment5%
Clothing5%
Medical5%
Everything Else5%
Savings10%

Understanding The Budget Planner Template

The first thing you’ll notice is that I didn’t include any taxes (either income or Social Security). You can choose to do that if you like (in fact, it’s a real eye opener). But for our purposes it’s easier just to deal with your ‘take home’ pay.  The second thing to notice is that this is a guideline, not a straight jacket. The truth is that very few of us will fit into this exact framework.  So if your spending doesn’t match, don’t despair! Analyze the situation before you panic!  Try our excel budget template!

Customize the Budget Planner Template To Fit Your Wants & Needs

For instance maybe your entertainment spending is closer to 10%. Is that a problem? Maybe not, if you’re young, single and sharing an apartment with three friends. In that case what you save on housing is going for entertainment. So overall you’re not spending more than you’re making.  Or you may be a city-dweller where housing is very expensive (think NYC). But because of public transportation you don’t own a car. So the extra you spend on housing is offset by the reduced spending on transportation.  You get the idea. Tailor your spending plan to your needs. And, adjust it as you go through life and your needs change.  One other thing to notice is that housing, food and auto make up the lion’s share of the expenses. That’s true for almost everyone.  It’s in those three areas that most families get into trouble. Most often by buying a home or vehicle that they cannot afford. But once the commitment is made it’s very hard to undo.

Categorizing Your Expenses

You might wonder where a certain expense goes. For instance, household cleaning supplies. Many people buy them at the grocery store. So are they a housing or food expense? The answer is: it doesn’t much matter. Put them wherever it seems best to you. The key is always putting them in the same place, so you can compare results from month to month.

Another common question is what should I do with charitable contributions. You can either take it off the top (like taxes) or create a separate category for it. If you believe that contributions should come before your expenses you’ll want to take it off the top. If you think that it’s part of your regular spending then include it as another expense category.  For a budget planner template to be effective you must continuously follow your progress.

How Much Should You Save?

Finally, let’s look at John’s question about saving. There probably isn’t any single right answer, because saving isn’t really an expense. It’s an investment for a better future.  So I prefer to think of savings in terms of priorities. Before I can put money aside for savings I need food and a reasonable shelter. Probably also need dependable transportation to get to my job.  But after those basic needs are met, it’s time to begin saving some money. Not necessarily the 10% in our guidelines, but 2, 3 or 4%. Enough so that there’s some money set aside for the so-called unexpected expenses that happen to us all (dead appliances, home and auto repairs, unexpected sickness, temporary lack of work).

One other comment about savings. Paying off debt (especially credit card debt) is a little like savings. Consider payments used to reduce the amount owed as if they were savings or a Bank CD.  Finally, for those of you who don’t want to bother with any of this. I know what you’re thinking: I’m fine and don’t need any help monitoring my money. Just remember that most people who are in trouble today said the same thing when everything looked good to them.

 

How To Manage Debt Effectively

In the current it seems that a lot people are still sinking into debt, even though the loan companies have become very strict on who they lend money to. This article was intended to give you tips on how to manage debt effectively.

We know most people who find themselves in debt will struggle initially to get a handle on things and could end up even deeper in debt if they are not careful. However, there are several ways in which to get debt help to tackle your debt problem.

Top 5 – How To Manage Debt

How to manage debt effectively

Priorities Your Monthly Expenses

No doubt you may have monthly expenses, which you could certainly get rid of. For example get rid of any club/gym memberships, which are not totally necessary. And talking of luxuries you should also eliminate on your takeaways each week. Over the course of a month the cost can really add up. This is why looking for ways to save money can can really help in reducing your debt.

Get A few Quotes

Next time you go to renew your car insurance, home and content insurance etc then it pays to shop around for the lowest price deal. You can save $100’s by getting quotes online when it comes to renewal time.

Pay more each month

If you already own a number of credit and/or store cards you should always pay more each month. A lot of people tend to pay back just the minimum amount and it could take years to finally wipe the debt. By paying a little extra it could shave off a few years of repayments.

Use 0% Balance Transfer Cards

How To Manage DebtIf your credit rating is good and you also have lots of cards it makes sense to move your debts to cards which give you 0% for extended periods. Lots of companies give out 0% on balance transfers from other cards and they do this for anywhere up to 6-12 months. This can save you lots of interest payments each month and should be a high priority in helping to manage or reduce debts. Check out http://www.creditkarma.com/Zero-Intro-APR/CreditCards to find out cards you will qualify for.

Secured Debt Consolidation loans

Lots of loan companies offer this type of loan. The principle is very easy in that you pool all your debts from credit cards etc into one big loan. This then leaves you with one manageable loan, which you pay back each month. Consolidation loans are very popular but are only useful if you also cut up the credit cards that got you into the debt mess initially. The loans are typically secured on your home so the interest rates are very competitive, and certainly less than a standard credit card. As you can see by consolidating your debts it can save you a lot of money each month.

How To Manage Debt? What’s next?

The above are just 5 ways on how to manage debt. By applying all or even a few of the debt management tips will leave you with a much lower debt exposure month on month. All you need to do now is apply the advice given and start clearing your debts from today. Look at Improve Your Credit In 5 Easy Steps

Moving Out of Parents House

Moving Out of Parents House & Dealing With Money

Guide to Moving Out of Parents House & Dealing With Money

People do not stay at home in the entire life. The life must go on. And to build up the career and to make success in life you people need to focus on moving out of parents house.  For education, job or business, they must have to face the reality of life. But, most of the people often get stuck or fixed in the times of managing the money.

Staying at home, actually keeps people tension free from the tense of money management and dealings.  Especially, when people stay with parents they don’t have to care for anything. The problem arises when they leave home. Leaving home leads people in huge problem as they will have to manage each and every financial aspect in their own way. And often they fail to manage that.

So, what they need to do is to know and learn to manage the money so that they can get out of financial problems. Here you get to know the ideas about the ways to manage the money and budget so that life can run smoothly.

Planning a budget:

This is actually the most important part of money management. People need to make a budget about the expenses in every month. They must know how much they earn and how much they can expense. With this assessment, they need to set up a budget.

One thing must be performed and that is you should not spend more than you earn. You should spend less than your earnings. This habit can save you from all odds in the management of the life after leaving home. In fact, people must maintain this and exceed the budget.

It may happen for some month that you need to spend exceeding the budget. If you will have to do that, make sure you can recover that in the next month. If you can manage to make some savings in every month, you may not have to face problems even if you have to exceed the budget in a month. You can manage to make that possible with using the saving account.

Avoiding taking loans:

After leaving home, most of the people make this mistake. They depend on payday loan no credit check. This habit can lead them to huge problems. The problems are associated with the default as they can not manage to repay the debts. This can harm the future financing as well. So, people should avoid taking loans.

Instead of taking bad credit loan, they can do an added job. Utilizing the vacation or weekends can make you generate some money so that you do not need to go for a loan. Whatever you do, you should not go for applying for a loan.

Avoiding using credit cards a lot:

If you have the habit to purchase everything with credit card, avoid that if you have left home for making career. This habit can lead you face credit card debts which can harm you a lot. So, use the credit card as less as you can. It would save you from many dangers.  Now you’re ready to start the process of moving out of parents house.