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Using the term “budgeting” can sometimes be off-putting because people think it’s a way to deprive them of something. Budgeting is actually a way to find out how much money you need for living expenses so that you can control how your pay is used and have something to set aside. Here are a few effective budgeting strategies you can use to meet your financial goals.

Tip #1: Record everything

You may list down your essential expenses like utility bills and insurance payments, but do you also record the smaller ones, like the little purchases at the convenience store or even your vending machine jaunts? Remember, these seemingly trivial expenses do add up, and they can mess up your budget. The trick is to keep all your receipts and write everything down, so that when you work on your budget, it’s accurate, down to the last cent, allowing you to better manage how your hard-earned income is spent.

Tip #2: Select your platform

If your finances are really simple, then maybe a pencil and paper are all you need to plan your expenses. However, if your budget is a bit more involved, you’d need a platform that can make things easier for you. For instance, you can use spreadsheets to map out your budget from scratch or download templates for something more specific.

You can also look for online personal finance services like ClearCheckbook and Money Strands or any other similar websites. Such services have useful budgeting features like generating a spending plan and chequebook balancing.

Tip #3: Spend less than you earn

All your efforts at budgeting would be ineffective if your expenses are larger than your income. What you need to do is spend less than what you earn. Take note that if you use up more than your income, you will accumulate debt. If your income and expenses are pretty much equal, you need to spend less or earn even more. If this is the case, go for spending less it’s much easier than getting a second job. Spending less than your income allows you to accumulate wealth.

Tip #4: Pay yourself first

Think of putting money in savings like a bill to be paid to yourself. Indicate the savings as part of your budget and withdraw it before spending your funds on bills, groceries or any other expenses. See to it that you deposit your savings budget immediately in a separate account so that you won’t mistakenly spend it. If possible, set up a way for your savings to be deducted automatically from your salary. You won’t even realise you’re accumulating wealth.

Tip #5: Reduce entertainment expenses

There’s probably an allotment for “entertainment” in your budget, which could cover expenses like watching a movie, going on dates or even buying video games. Play close attention to these costs because it might cause you to overspend. To reduce entertainment expenses, consider:

• Getting bundled packages for phone, television and internet service.
• Borrowing audio books, movies and even video games from public libraries.
• Visiting free art exhibits or movie festivals for dates.

Tip #6: Prepare your own meals

It’s more expensive to eat out than to prepare your own meals. Consider that having a meal for two people at a mid-priced restaurant would cost around AU$77 to AU$80. Groceries for two people, on the other hand, would cost around AU$150 to AU$200 per week. You can eat at inexpensive restaurant (i.e. fast food) to save on costs, but that’s not good for your health. To save money on food, learn to cook healthy meals. That way, you cut down dining out costs and possible doctor visits.

Tip #7: Overestimate when allotting funds

If you’ve been budgeting for a while, then you probably know that many expenses have variable costs due to fluctuating prices. To prepare your budget for this unpredictability, look over the last year’s worth of receipts/bills and pick the most expensive you ever paid as your guide until an increase is announced. Here’s another tip: When allotting your funds, make sure you don’t use the exact figure. Instead, round off to the higher number, so that you won’t be short on funds.

Unemployment is not an uncommon thing today. A lot of people become find it hard to find one because they are either over-qualified or the job is a little too down for them. But did you know that you can now make money online? There are a lot of jobs online that will only require you to stay at home, it is called freelancing. Freelancing jobs can be a source of extra income for some. People do it to save money for paying the bills, the rent, and the works. Freelancing is considered a legit job, so you still have to do a credit check regularly but then again, this can also improve your credit score. Follow these tips to balance earning money and maintaining your credit.

• You are going to need to pay your bills at every end of the month. If you get to work as a freelancing designer, writer, consultant or editor consistently, then this job can help you with pay for it and not miss out on payments. Missing on payments will hurt your credit score and it may affect your credit report that clients usually look for. This is what they will use to find out if you are trustworthy and responsible so taking care of it is a priority.

• Another way to earn money online is by blogging. Companies or people can pay you to put up their advertisements on your site. You can also get paid for sharing opinions and some product reviews. Posting valid survey tests on your site for others to answer will also help you earn money. You can choose to work part time or full time, but of course, the more time you spend with freelancing, the more money you will earn.

• Some people get their salary only once a month, which can make budgeting a tad more difficult. Clients sometimes even miss out on that date and you have to wait for next month’s payday. Your bills, however can’t afford to wait that long, unless you want to jeopardize your credit score. Managing your money and earning online can prevent you from missing out on your bills. You just have to manage your money wisely and set your priorities first.

•  Do a credit regularly to keep track of your report and to make sure that everything is in good shape. Some employers do a credit check without you knowing, and good credit report may land you the job or not. If you do a good job, your employer might even recommend you to others.

Your credit and your job will always be as one. There may be a lot of ways to earn money, but remember that making money will not be easy but if you can manage it well then you’ll be able to pay your bills, keep your credit healthy and keep a consistent job. Managing debt is a key to high credit score which can make your financial life better as credit score is a pass that makes you look good by the lenders and the banks.

Jack is a financial blogger and love to share financial tips to manage personal finances, improve credit score and monitor credit report free.

Controlling your finances is essential if you want to reach your financial goals. Fortunately, taking control of your money isn’t an impossible task. The following strategies have worked for millions of people who wanted to get out of debt, save money, and build wealth.

1. Put something into savings every month.

Some financial advisors name a percentage of your total income, while others name a dollar amount. Whichever method you choose, make sure that you put a percentage of your paycheck into a saving account. This is a sure-fire way to know that you are living within your means.

2. Pay off your highest interest debt first.

It’s nearly impossible to do anything without taking on debt at some point, but it is critical that you work to get your debt paid off as quickly as possible. By starting with your highest interest debt, you are insuring that you are paying the least amount of interest every month. As you pay off a loan, use the money that you were paying towards it to cover the next highest interest loan. Repeat this process until you are out of debt.

3. Have an emergency fund.

Everyone has unexpected expenses in their lives. Unfortunately, too many people choose to deal with them by pulling out a credit card. With an emergency fund, you will be able to pay for small and large disasters without relying on high-interest debt. While having several months of your expenses set aside is ideal, even having as little as $100 in a savings account can pay for minor disasters.

4. Start saving for retirement early.

With so few people eligible for pensions and Social Security becoming less and less reliable, odds are that you will have to take on the majority of the responsibility for your retirement. Fortunately, there are several different ways to prepare. The key to all of them, however, is to start saving as early as possible. By putting funds aside in your twenties and thirties, you earn the benefit of compound interest and increase the leeway you’ll have with saving for retirement in your later years. In other words, the more you put aside now, the less you’ll have to come up with later.

5. Teach your kids about money.

No matter how well you plan and save, you will someday have to pass on everything to your kids. You may even have to put them in charge of your finances for a while. Make sure that they know everything they can about money management. In addition to becoming proactive about protecting your assets, your kids will also be much less likely to make poor financial decisions that will have them asking for a loan.

While no strategy or piece of advice will prevent you from making mistakes or experiencing financial setbacks, following these five strategies will make it a lot easier to deal with these events if they arise in the future.

Are you reaching that point in your life when you have to plan for your retirement? You must not rely on your social security money alone for covering all the expenses after your retirement. Not having a proper retirement plan will lead to a bad situation after your retirement and that is something that you must avoid. Here are 4 retirement plans that you can consider and choose from.

1. The 401(K) Plan

This is one of the most popular plans that employers use to secure their employee’s retirement. According to this plan, you must match your employer’s contribution to the plan (which oscillates between 1% and 6% of the payment) to take full advantage of the plan. Plan your investment properly so that you can take full advantage of it after retirement. Failing to match your employer’s contribution will make the investment in this retirement plan redundant. There are many other flexible investment plans for helping you with your contribution to the retirement plan. Choose one that you can afford.

2. Savings Incentive Match Plan for Employees (SIMPLE) IRA

Many small time employers secure their employee’s retirement using this plan instead of the 401(K) plan. The only difference between these two plans is the fact that this plan has no maintenance fee as such from the employer’s side and thus is a popular choice with most small time employers. The contribution that the employee is supposed to make to this plan is deducted automatically from the pay check.

3. Traditional IRA (Individual Plan)

It is always advised that you should maintain an individual retirement plan along with the employer’s retirement plan that is already in place. The contribution that you can make to this plan is limitless and depends on your personal financial abilities completely. The contribution eligibility is set at $5,000, plus $1,000 catch up for those over 50 years old, but not per account.

4. Roth IRA (Individual Plan)

This plan is similar to the Traditional IRA plan with the same limit and eligibility criterions. The only difference is the fact that the contributions you will make to this plan is not income tax deductible.

In case you find out that you are ineligible for the IRA individual plans, you can always set up an annuity fund. The tax benefits are lower than the tax benefits one gets with the IRA funds and also the contribution fees are higher than usual. These shouldn’t deter you from having a solid retirement plan in the first place.

It didn’t take long for social networking to hit the financial world in a meaningful way. No, it’s not a new app for your smartphone that lets you take a picture of a check and then deposit it into your bank account. As cool as that is, SmartyPig is at least twice as cool. Read on for proof.

What is SmartyPig?

SmartyPig (smartypig.com) is a goal-oriented internet-based savings account fully protected by the Federal Deposit Insurance Corporation (FDIC) just like the savings account at your local bank. What differentiates a SmartyPig savings account from traditional savings accounts is the unique social networking component attached to each account.

Set a goal for yourself

Aren’t all savings accounts goal-oriented? Sure, but not in the same manner as a SmartyPig savings account. When you setup a SmartyPig account you immediately identify a goal for the money. Want a new laptop computer? Make that the goal. Want to take a holiday cruise? Then that’s your goal.

After your savings goal has been identified, simply enter in the amount of your goal and the day you want to reach it.

Social Networking

What makes the SmartyPig savings accounts a zillion times more fun than a traditional savings account is that you get to share your goal with all your friends on Facebook! Just try and pretend that isn’t awesome.

But the Facebook fun doesn’t end there. Not only can your friends share in your goal by encouraging you to stay on track to achieve your goal, they can also contribute to your financial success. Just imagine 1,000 of your closest friends each contributing just one dollar each to your success. Okay, it’s probably not quite that easy, but you get the gist of how the social networking component works.

Retail Partners

Another exciting part of a SmartyPig savings account is the retailer shops that have jumped on board with cash-back savings of up to 11% on purchases, and it’s no small number of stores. Here’s a partial list:

* Amazon.com (3%)
* Banana Republic (10%)
* Gap (10%)
* Macy’s (11%)
* Old Navy (5%)
* Sports Authority (5%)
* Travelocity Hotel Gift Card (10%)

Here’s how this program works. Let’s say you have saved $1,000, reaching your goal for a vacation. When you transfer that money, as an example, to a Travelocity Hotel Gift Card you instantly get an additional 10 percent—$100 dollars—added to the gift card. That’s $1,100 to put towards your hotel. Sweet, right? Of course it is.

Interest Account

To top off everything you’ve read so far about SmartyPig savings accounts, they also pay a very competitive annual yield of 0.70% on any balance below $50,000. Accounts exceeding $50,000 earn an annual yield of 0.50%, making SmartyPig savings accounts among the most competitive in the industry.

So, what are you waiting for? Do you have a financial goal that could really get exciting with SmartyPig, your friends on Facebook, and cash back from great retail partners? Visit smartypig.com for all the details and set a plan into motion to reach your goals.