Personal Finance Budgeting Tips In The New Year

Depositing our pay cheques in bank and using the credit and ATM card for spending seems easy. However keeping the track of your income and expenses, to get full value for your money is possible only with budgeting. Budgeting helps most of us to keep track of our income and spending and not overspend. In practice 10 budgeting myths retard the savings of a lifetime. This requires a change of perspective. Michel Jackson lived like a king but died awash in $400 million debt. Budgeting by watching your spending pattern helps trace unnecessary expenses on clothes or eating out, and help you save for a future or for a much wanted dream holiday. So how much you earn has got less relevance. What is more important is budgeting. Proper budgeting can make a low income earner to retire richer and overspending can make a high income earner a pauper. This does not hold well today with large corporations going in for labor layoff to save costs during recession.

Tip – You can link your wife’s and your children’s credit card accounts with your Mint account and you will have all of the financial information you need in your iPhone or Blackberry or smart phone to inspect their real time spending trends. You will be able to utilize it along with the monthly budget planner that compares expenses for the month to a budget. By receiving alerts, you are made aware of any financial disasters before it’s too late. Instead of wondering why you have no savings and then asking questions and sometimes causing family conflicts, you can silently monitor the spending habits of your family. With his web accessible information you can discretely make suggestions to curtail spending before becomes a financial problem. Use Mint to manage your budget and it will become a great behind the scenes monthly budget planner to follow. You can also learn about what places your daughter or son is spending their money while at college, and where they like to have fun,have dinner or lunch or have drinks or have cocktails.

With proper maintenance your car can last three times longer. Food, clothing and shelter are necessary items no one can live without, there are ways to save in these areas that can help you save without sacrificing your standard of living. So what can be done to stretch a dollar to make it go further when it comes to grocery shopping? Budget your grocery shopping. Take a look at how much you spend, then set aside a certain amount of your income for food purchases. Make a shopping list of all your necessary items. If you have money left over from your food budget, then you can allow yourself some luxuries. Don’t buy at convenience stores. Prices are more expenses than in the supermarket. The 24 hour-a-day convenience is reflected in the prices of the items you buy. A big home is a status symbol for many people but a great drain on resources.

For example if the company decides to follow an investment proposal where the discounted payback period is great during the later stages of the project although the initial cash outlays are large. If the company is heavily financed through debt then the risk placed on that project will be high due to the probable default risk occurring if the short term future produces an uncertain event that throws the investment into doubt. The recent crisis in the football industry has demonstrated the importance of keeping a tight control of a company’s finances. As the industry became increasingly profitable throughout the 1990’s many clubs operated under the trade off theory principles. To incorporate increased spending in parallel with exponential transfer and wage increases clubs borrowed excessively to a point where the industry could not sustain itself any longer. This reached a head during May 2002 when the sudden collapse of ITV Digital resulted in the threat of bankruptcy for many smaller clubs.