Author Archive
4 basic steps to start a budget
Posted by: | CommentsAre you one of the many people trying to develop a budget that works. Especially with kids, having a budget is hard work.
Here are the 4 basic steps to start a budget
-
The first thing you want to do is keep track of where all your money is going. You would want to save your receipts. You would want to separate in house, food, eating out, miscellaneous, cigarettes (if you smoke), clothes, kids, electric, and so fourth
-
Then you would want to cut back on the items that you do not need, which is also known as the the latte factor ( For more info see What is Latte factor). What you definitely do not need is cigarettes for example.
-
Stick to it: if it is not in the budget, then do not get it. Make sure you plan ahead. If you want to take a vacation plan for that in each paycheck
-
Use the envelope system instead of using your debit or credit card. What you do is mark the envelopes as rent, groceries, eat out, clothes, etc, then you put a portion of each paycheck into the envelope. Make sure you use cash in the envelope, and make sure nobody can find it, or it is not in plain sight.
Possibly Related Posts:
Ford foundation study of goals
Posted by: | CommentsFord foundation study of Goals
The Ford foundation recently did a study of goals
They found that:
23 percent of the population does not have any idea what that want in life
67 percent of the population has broad idea of what they want, but does not have any plans to achieve that goal
10 percent of the population knows what they want, but only achieve their goals 50 percent of the time.
The top 3 percent knows what they want to achieve and achieve their goals 89 percent of the time. So what the difference between the 3 percent and the 10 percent.
The answer is the 3 percent has well written goals using the SMART formula
Possibly Related Posts:
The Benefits of Goal Setting
Posted by: | CommentsThe benefits of goal setting
Gives you clarity for what you want out of life. It helps you move your thought and actions on what you want to accomplish. Instead of wandering around aimlessly through life, goals help you achieve your heart desires.
Time management: instead of focusing on the wrong actions that gets you to somewhere, goals help you prioritize what is important on accomplishing your goals.
Lets you see what you need to accomplish and by when. If you want to lose 12 pounds in a year, it tells you that you need to lose 1 pound a month.
The motivation to keep going: Long term goals is going to take some time, like for example million dollars in 20 years. You have to keep your eyes on the prize.
Satisfaction: when you achieve your goals it is very satisfying, because you took a semi hard goal and achieved it.
Possibly Related Posts:
The 9 simple ways of Achieving your Goal
Posted by: | CommentsThe 9 simple ways of achieving your goal
1)Must be specific, attainable and challenging: I want to lose 15 pounds in one year: is challenging, attainable and specific. If you said I want to lose weight that is not specific, if you said I want to lose 15 pounds in a week, that is not attainable, unless you have liposuction of something, and if you said I want to lose 1 pound, that is not challenging.
2)Why you want to achieve it?From the above example: If you said you to be in better health for I can spend more time with my kids, instead of dying early, that would be a great goal. Be specific as possible. The stronger your motivation on this goal, the better.
3) What are the obstacles of achieving your goal?: one of my obstacles of trying to get shape was my legs was always, tired, because of my former job as security guard, because I had to walk around all night. Before my goal, I was stretching, but not enough, so I added more stretches and eventually I ended up quitting that job. I had to put off my workout for awhile until I got my legs back into shape.
4)What sacrifices do I need to make? If you want to quit drinking that means you have to spend less time with your friends that drink all the time.
5)Who can help me with my goal? It is always better to find a partner or mentor to help with your goals. If your goal is to to quit drinking, you could join AA. If your goal is to quit smoking, how about reading some books, or find a friend that wants to quit too. Your spouse should help your goal as well
6)What information do I need ? You could always read a book or even better yet, use the internet to help achieve your goal.
7)What are the steps you need to reach that goal: To weight it could be join a gym, get books on weight loss, and get a diet cookbook
8)What is your commitment? On a scale of 1 to 10 how would you rate yourself. If scored a low score, don’t even bother, or wait until you are committed. Most people want to quit smoking, but their commitment is very low, when they get lung cancer, their commitment is very high.
9)What one thing can I do today: sometimes we are so motivated on our goals, then the next day we are not that motivated. The quicker you act on your goal, the better, do not wait, unless it is low priority goal, like, read a novel or something.
Possibly Related Posts:
What is the envelope system
Posted by: | CommentsThe envelope system is a great way to help make budgeting easier. You would want to start listing all your expenses that spend each month. Then you make categories such as food, auto, rent, clothes, etc.
Then each paycheck you would want to deposit a certain amount of money into each envelope. You would want to split the amount you put in, buy the number of times you are paid each month.
For example, you are paid twice a month and rent is 1000 dollars a month. So you would want to put 500 dollars each paycheck and put it in the envelope.
Important points
-
do not leave your envelopes laying around where anybody can find them, make sure you hide them where you and your trusted spouse can find it. You do not want your kids or anybody else that comes to your house to find it.
- With rent and major expense it is a different story about putting into an envelope, obviously you do not want somebody to steal it or gets misplace and for two you can be earning interest on your account. What I do is have a separate bank account that gets direct deposited into my account. In fact I have 3 bank accounts because I do not trust myself) , one for rent, one for spending money, and the other for emergency money.
Possibly Related Posts: