Results 1 to 3 of 3
  1. #1
    Liss
    Guest

    Default Why live on a budget?

    Why live on a budget?

    By Shelly K. Schwartz



    4 reasons to budget

    1. Help control debt

    2. Earn cheaper rates

    3. Improve relationships

    4. Save more money



    If you're like most Americans, your monthly income never goes far

    enough. After shelling out for house payments and groceries, it seems

    there's little leftover for things that matter most to you -- weekly

    dinners out, orchestra-row theater seats, a college savings plan for

    your kids.







    Hate to break it to you, but it's not your salary that's to blame.

    According to financial experts, it's a pattern of poor spending

    choices.



    "When my clients sit down and really look at where their money is

    going, oftentimes they are shocked to find it has nothing to do with

    what's really important to them," says Martin Siesta, a certified

    financial planner for Compass Wealth Management in Maplewood,

    N.J. "Five dollars a day on Starbucks, for example, is a big number

    when you multiply it by 360. That takes away from things you may have

    been struggling to attain."



    Life's little extras are well within reach for those who know how to

    budget.



    By establishing reasonable spending limits and sticking to them, the

    average consumer can do far more with less -- without sacrificing

    daily conveniences, said Jim Tehan, a spokesman for the Myvesta

    Foundation, a self-help consumer education Web site.



    "Budgeting is all about controlling your finances instead of letting

    your finances control you," Tehan says. "That element of control is

    going to save you money in the long run."



    Controlling debt

    Financial mismanagement makes consumers more vulnerable to

    overspending, which results in lower savings and higher credit card

    debt.



    Myvesta's 2005 annual Credit Card Survey, reports the average

    American carries $2,328 in credit card debt, spread out across 2.9

    cards. With interest rates at or above 18 percent for most cards,

    that gets expensive. For example, a $5,000 balance on a credit card

    with 18 percent interest would cost you more than $8,000 to pay off

    if you made only the minimum payments (4 percent).



    "The amount of money you wind up spending just servicing debt through

    credit card interest could be extra money you could apply towards

    something else," Siesta says, adding that following a monthly budget

    can help you both pay down existing debt and prevent impulse spending

    to begin with.



    Cheaper rates

    Another upside to life on a budget is that it forces you to become

    organized. That, in turn, helps you avoid late payment penalties and

    improves your credit score. Lenders use your credit score to

    determine how much they should charge you for auto and mortgage

    loans. It also can affect how much you pay for auto and homeowners

    insurance.



    Improve your relationship

    A less obvious benefit of budgeting is the positive effect it can

    have on relationships. According to Siesta, sitting down with your

    significant other to discuss financial goals helps prevent money

    disputes down the road. It also provides a rare opportunity to define

    your own spending philosophies. "Money is a huge source of stress for

    many couples," he said. "The mere act of discussing your finances

    with a spouse or significant other really does help create better

    understanding and better relationships."



    Saving for the future

    Finally, learning to live within your means can help you get ahead.

    By allocating a portion of your monthly budget towards savings, you

    can simultaneously build a retirement nest egg for your future and a

    financial safety net for short-term emergencies, in case you or your

    spouse lose a job or suddenly fall ill.



    "Budgets create financial security, which gives you the ability to

    withstand the financial surprises that life throws your way," Tehan

    said.



    Budgets are all about financial freedom. Without a plan for saving

    and spending, you'll never make the most of your income -- no matter

    how much money you earn.



    "Budgets are very empowering," Siesta says.



    "They don't lead you away from something. They lead you toward your

    financial goals."

    By Shelly K. Schwartz












  2. #2
    trisha
    Guest

    Default Why live on a budget?

    Hi,

    I think that article is really correct. I think that having my car

    break down on me (the morning of new years eve).. and realizing that

    already for towing and diagonistics I am past $130 dollars.. It is

    very important to have a budget that includes a category for

    emergencies. The only big question I would have.. is what percentage

    of a paycheck should go into that category?

    ~Trisha















    --- In Budget101_@yahoogroups.com, "Liss" <liss@...> wrote:

    >

    > Why live on a budget?

    > By Shelly K. Schwartz

    >

    > 4 reasons to budget

    > 1. Help control debt

    > 2. Earn cheaper rates

    > 3. Improve relationships

    > 4. Save more money

    >

    > If you're like most Americans, your monthly income never goes far

    > enough. After shelling out for house payments and groceries, it

    seems

    > there's little leftover for things that matter most to you --

    weekly

    > dinners out, orchestra-row theater seats, a college savings plan

    for

    > your kids.

    >

    >

    >

    > Hate to break it to you, but it's not your salary that's to blame.

    > According to financial experts, it's a pattern of poor spending

    > choices.

    >

    > "When my clients sit down and really look at where their money is

    > going, oftentimes they are shocked to find it has nothing to do

    with

    > what's really important to them," says Martin Siesta, a certified

    > financial planner for Compass Wealth Management in Maplewood,

    > N.J. "Five dollars a day on Starbucks, for example, is a big number

    > when you multiply it by 360. That takes away from things you may

    have

    > been struggling to attain."

    >

    > Life's little extras are well within reach for those who know how

    to

    > budget.

    >

    > By establishing reasonable spending limits and sticking to them,

    the

    > average consumer can do far more with less -- without sacrificing

    > daily conveniences, said Jim Tehan, a spokesman for the Myvesta

    > Foundation, a self-help consumer education Web site.

    >

    > "Budgeting is all about controlling your finances instead of

    letting

    > your finances control you," Tehan says. "That element of control is

    > going to save you money in the long run."

    >

    > Controlling debt

    > Financial mismanagement makes consumers more vulnerable to

    > overspending, which results in lower savings and higher credit card

    > debt.

    >

    > Myvesta's 2005 annual Credit Card Survey, reports the average

    > American carries $2,328 in credit card debt, spread out across 2.9

    > cards. With interest rates at or above 18 percent for most cards,

    > that gets expensive. For example, a $5,000 balance on a credit card

    > with 18 percent interest would cost you more than $8,000 to pay off

    > if you made only the minimum payments (4 percent).

    >

    > "The amount of money you wind up spending just servicing debt

    through

    > credit card interest could be extra money you could apply towards

    > something else," Siesta says, adding that following a monthly

    budget

    > can help you both pay down existing debt and prevent impulse

    spending

    > to begin with.

    >

    > Cheaper rates

    > Another upside to life on a budget is that it forces you to become

    > organized. That, in turn, helps you avoid late payment penalties

    and

    > improves your credit score. Lenders use your credit score to

    > determine how much they should charge you for auto and mortgage

    > loans. It also can affect how much you pay for auto and homeowners

    > insurance.

    >

    > Improve your relationship

    > A less obvious benefit of budgeting is the positive effect it can

    > have on relationships. According to Siesta, sitting down with your

    > significant other to discuss financial goals helps prevent money

    > disputes down the road. It also provides a rare opportunity to

    define

    > your own spending philosophies. "Money is a huge source of stress

    for

    > many couples," he said. "The mere act of discussing your finances

    > with a spouse or significant other really does help create better

    > understanding and better relationships."

    >

    > Saving for the future

    > Finally, learning to live within your means can help you get ahead.

    > By allocating a portion of your monthly budget towards savings, you

    > can simultaneously build a retirement nest egg for your future and

    a

    > financial safety net for short-term emergencies, in case you or

    your

    > spouse lose a job or suddenly fall ill.

    >

    > "Budgets create financial security, which gives you the ability to

    > withstand the financial surprises that life throws your way," Tehan

    > said.

    >

    > Budgets are all about financial freedom. Without a plan for saving

    > and spending, you'll never make the most of your income -- no

    matter

    > how much money you earn.

    >

    > "Budgets are very empowering," Siesta says.

    >

    > "They don't lead you away from something. They lead you toward your

    > financial goals."

    > By Shelly K. Schwartz

    >










  3. #3
    koolkat31272
    Guest

    Default Why live on a budget?

    I'm a Dave Ramsey follower and he recommends a $1000 emergency fund

    for just such an emergency. As long as your bills are up to date, or

    even if your robbing Peter to pay Paul each month, you must find

    every penny to build an emergency fund. Especially if you are living

    in the paycheck to paycheck situation, there are more chances Murphy

    will make a visit to you. Once you have that emergency fund in

    place, than you can modify your budget to accomodate a "vehicle

    repair/emergency" category and build it to what you think is

    appropriate. For example my deductable is $500 with reimbursed car

    rental, at $50/day allow for a week (7 days = $350) with towing at

    $50, so we are looking at $900. Create that category and fund it to

    $900+, but always have a $1000 emergency fund. That can also cover

    Emergency Room copays, accidentally breaking your front room window,

    emergency trip to see sick/dying family, etc.



    Catherine



    --- In Budget101_@yahoogroups.com, "trisha" <purrcatnip@...> wrote:

    >

    > Hi,

    > I think that article is really correct. I think that having my

    car

    > break down on me (the morning of new years eve).. and realizing

    that

    > already for towing and diagonistics I am past $130 dollars.. It is

    > very important to have a budget that includes a category for

    > emergencies. The only big question I would have.. is what

    percentage

    > of a paycheck should go into that category?

    > ~Trisha

    >

    >

    >

    >

    >

    >

    >

    > --- In Budget101_@yahoogroups.com, "Liss" <liss@> wrote:

    > >

    > > Why live on a budget?

    > > By Shelly K. Schwartz

    > >

    > > 4 reasons to budget

    > > 1. Help control debt

    > > 2. Earn cheaper rates

    > > 3. Improve relationships

    > > 4. Save more money

    > >

    > > If you're like most Americans, your monthly income never goes far

    > > enough. After shelling out for house payments and groceries, it

    > seems

    > > there's little leftover for things that matter most to you --

    > weekly

    > > dinners out, orchestra-row theater seats, a college savings plan

    > for

    > > your kids.

    > >

    > >

    > >

    > > Hate to break it to you, but it's not your salary that's to

    blame.

    > > According to financial experts, it's a pattern of poor spending

    > > choices.

    > >

    > > "When my clients sit down and really look at where their money is

    > > going, oftentimes they are shocked to find it has nothing to do

    > with

    > > what's really important to them," says Martin Siesta, a certified

    > > financial planner for Compass Wealth Management in Maplewood,

    > > N.J. "Five dollars a day on Starbucks, for example, is a big

    number

    > > when you multiply it by 360. That takes away from things you may

    > have

    > > been struggling to attain."

    > >

    > > Life's little extras are well within reach for those who know how

    > to

    > > budget.

    > >

    > > By establishing reasonable spending limits and sticking to them,

    > the

    > > average consumer can do far more with less -- without sacrificing

    > > daily conveniences, said Jim Tehan, a spokesman for the Myvesta

    > > Foundation, a self-help consumer education Web site.

    > >

    > > "Budgeting is all about controlling your finances instead of

    > letting

    > > your finances control you," Tehan says. "That element of control

    is

    > > going to save you money in the long run."

    > >

    > > Controlling debt

    > > Financial mismanagement makes consumers more vulnerable to

    > > overspending, which results in lower savings and higher credit

    card

    > > debt.

    > >

    > > Myvesta's 2005 annual Credit Card Survey, reports the average

    > > American carries $2,328 in credit card debt, spread out across

    2.9

    > > cards. With interest rates at or above 18 percent for most cards,

    > > that gets expensive. For example, a $5,000 balance on a credit

    card

    > > with 18 percent interest would cost you more than $8,000 to pay

    off

    > > if you made only the minimum payments (4 percent).

    > >

    > > "The amount of money you wind up spending just servicing debt

    > through

    > > credit card interest could be extra money you could apply towards

    > > something else," Siesta says, adding that following a monthly

    > budget

    > > can help you both pay down existing debt and prevent impulse

    > spending

    > > to begin with.

    > >

    > > Cheaper rates

    > > Another upside to life on a budget is that it forces you to

    become

    > > organized. That, in turn, helps you avoid late payment penalties

    > and

    > > improves your credit score. Lenders use your credit score to

    > > determine how much they should charge you for auto and mortgage

    > > loans. It also can affect how much you pay for auto and

    homeowners

    > > insurance.

    > >

    > > Improve your relationship

    > > A less obvious benefit of budgeting is the positive effect it can

    > > have on relationships. According to Siesta, sitting down with

    your

    > > significant other to discuss financial goals helps prevent money

    > > disputes down the road. It also provides a rare opportunity to

    > define

    > > your own spending philosophies. "Money is a huge source of stress

    > for

    > > many couples," he said. "The mere act of discussing your finances

    > > with a spouse or significant other really does help create better

    > > understanding and better relationships."

    > >

    > > Saving for the future

    > > Finally, learning to live within your means can help you get

    ahead.

    > > By allocating a portion of your monthly budget towards savings,

    you

    > > can simultaneously build a retirement nest egg for your future

    and

    > a

    > > financial safety net for short-term emergencies, in case you or

    > your

    > > spouse lose a job or suddenly fall ill.

    > >

    > > "Budgets create financial security, which gives you the ability

    to

    > > withstand the financial surprises that life throws your way,"

    Tehan

    > > said.

    > >

    > > Budgets are all about financial freedom. Without a plan for

    saving

    > > and spending, you'll never make the most of your income -- no

    > matter

    > > how much money you earn.

    > >

    > > "Budgets are very empowering," Siesta says.

    > >

    > > "They don't lead you away from something. They lead you toward

    your

    > > financial goals."

    > > By Shelly K. Schwartz

    > >

    >










 

 

Tags for this Thread

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •