A penny saved is a penny gained

Think of the sentence above in mind when thinking of personal finance. Save consistently and even small amounts add up. Remember that the interest earned is added to the invested sum and more interest is made on this and so on. Set up a budget and take what is left over and set up a standing order or direct debit to transfer that amount on a monthly basis.

Do not get sucked in by your credit card.

It is too easy to buy something that you really need by just putting it on the credit card without thinking of how you will pay it back or the future interest payments you will incur. This discipline is needed to only spend when the actual money is in your current account.

Get a debit card

A follow on from the last point is to carry a debit card which will mean that you are spending what is in your current account or at worst your approved overdraft. of carrying cash with you or get a debit card.

Learning to handle money is a must in today’ credit driven society.It does not take a great deal of knowledge. It just take discipline and once you train yourself to have discipline you will have control over your personal finances and great peace of mind.

A great to help sort out our complex personal finances is personal finance software.Click here to read our reviews of the top three personal finance software packages.

Students Tips | How to manage money, save, plan and budget at university

Keeping track of money at university is tricky at the best of times, here at Student SOS we have put together our top 5 tips to help you manage your costs, save money and plan better budgets:

1. Write down all the things you have to spend money on. The ‘cost of university’ can be surprising; figuring this out early will save you having to make that dreaded call to the bank of mum and dad a month into term!

2. Organise your income; work out how much, where from and when you receive money.

3. Maximise income! Get a Job, saving whilst at university either means you get to party harder at the weekends or go wild when you finish…not to mention pay off those lousy student loans!

4. Budget! creating ‘budget planner’ is a great tip for saving money; note down how much you can spend on certain things like going out and food and stick to them rigidly.

5. Find ways to save…stop smoking, share laundry, don’t watch TV….be creative in ways you can cut down on expenses.

Follow our student tips and your be  sure to manage money, budget at university

How to Budget Money

This article contains principles that can be applied in all households. Wether you are bringing in considerable amounts of money or wether you have suffered an economic crisis that has put you on the back foot the same basic rules apply.

People generally do not know how to manage money. I personally never believed that since managing money is something I do not struggle with. But further research has shown that people often do not have this skill. It can easily be learned though. As do all things in life it takes discipline.

How to do a Budget

First you need to make a list of you Bank accounts and Credit Cards.

Some people have way too many accounts and are paying way too much on Bank Charges and Interest.

Next you need to gather the last 3 statements for each account if possible but if you only have the last one this will work too. You might choose to complete this exercise without following this step and record all your information from memory but chances are you will miss something. Let us be accurate about this.

You will need to identify your fixed expenses:

Mortgage Repayments/ Rent, Car Repayments

Insurance: Medical insurance, Car Insurance, Household Insurance, Life Cover, Retirement Plans, School Fees

These fixed amounts might be taken from your account by means of a direct debit, which is frankly a good idea for some things. However if you are self-employed and can foresee cash problems is would be wise to arrange for these amounts to be debited mid way through the month. If you are a salaried worker and your salary comes into your account on a fixed date, arrange for your fixed costs to be debited from your account the following day. Rent and Insurances are two examples of fixed costs that should not be negotiable.

However having said this I personally do not like giving anyone control over my money. I prefer to arrange a stop order with bank in favour of the beneficiary. What is a stop order? Well most financial institutions would have no problem with this arrangement. You authorise a transfer of a particular amount of money from your account to a beneficiary. What are the benefits? You control your money. If you terminate your lease the responsibility is yours to terminate the stop order.

Now identify expenses that may vary from month to month:

Phone Bills, Utility Bills (Lights and Water), Fuel Usage or Public Transport costs

(When it comes to the variable expenses be realistic and write down the highest they have been in the last few months)

Once you have all this information at your fingertips record the various amounts and payment dates as illustrated on the Budget plan below.

Once all the information is input you need to analyse the information.

1. Do I have debt?
2. Could I possible consolidate my debt?
   1. Often with financial institutions the smaller the amount the higher the interest rate. It would be good to investigate consolidating your debt.
   2. This of course includes credit card debt.
   3. And Clothing accounts often have extremely high interest rates.
   4. Once you have consolidated your debt get rid of the accounts in question. Do not try to manage them. You should have as few accounts as possible.
   5. Are my expenses exceeding my income?
   6. Is the amount spent under the “Variable Unnecessary Expenses” more than a quarter of the amount spent under the “Variable Necessary Expenses” section?
   7. Do I have unnecessary subscriptions?
   8. What percentage of my income am I saving?

Take action. Procrastination is the thief of time and the longer you take to dig yourself out of the hole, the higher the chances you’ll fail.

Also remember to put pen to paper (or perhaps finger to keyboard). Make sure you put your new adjusted budget down in writing. Print it out and put in somewhere visible. Perhaps include your goals on the same print out.

These goals could be dates as to when you intend to be debt free or when you intend to have saved enough for an overseas trip.

What is Cash Flow?

Earlier we mentioned cash flow. Remember when setting up or review              ing your accounts to ensure that your debit orders are set at a date with which you can cope. It would not be a           good idea to have all you debit orders leaving your account on the 1^st of every month unless you are a              salaried worker.

It is advisable to allow for a “bad patch” when planning your finances.

So what is cash flow? Well basically its picture of your checking account.           How much money is coming in and how much is going out. Now that sounds quite simple and obvious but              the problem arises when due to unexpected occurrences beyond your control you have negative cash flow for a sustained period of time.

How is cash flow best managed? At the risk of sounding repetitive… by means of a well formulated budget.

How to Save Money?

The best way to save money is to return to your budget worksheet and insert a realistic amount to save into your “fixed expenditures” column. Saving is not a luxury. And should only be upwardly variable. If you have completed this exercise and find there is nothing left to save you need to cut something out. Perhaps you have a gym membership? Well cancel it! Put you trainers on and go run down the road. Honestly this point cannot be overemphasized.

If you are not saving and merely making ends meet every month you will end up in debt. Unfortunately things just go wrong when you least expect them too and that’s when you need savings to fall back on. If you don’t have savings you end up making unnecessary debt. Furthermore there is always interest attached to debt. As an example perhaps you are saving $100 per month. You’re putting it away into savings account. Well for arguments sake lets say in Jan 2011 you started saving. By Jan 2013 you had saved $1200. We will ignore the few dollars you have received in interest for this exercise. If you have minor tragedy and need to spend the $1200 by the end of Jan 2012 your savings account will be empty. However, if you did not have that safety net you would have made debt for the amount of $1200 in Jan 2012. If you paid $100 per month towards this debt and let’s pretend you weren’t being charged any interest (hahaha) you will repay your debt by end of Jan 2013. So in other words by January 2013 you will have NO savings. However, if you had been saving $100 per month from Jan 2011, suffered your tragedy and emptied your account in Jan 2012, then continued saving $100 monthly by Jan 2013 you have $1200.

It is far easier to manage money when you actually have it. So even if all you can spare in an amount that you might think is insignificant take my word for it – it is going to help you.

“At risk” means these kids and teens are in danger of becoming another statistic: another inmate in the crowded prison system…

Unless someone steps in and teaches them the basics. How to manage anger. How to handle stress. How to diffuse conflict without resorting to violence. How to believe in themselves. How to take care of their bodies. How to network, interview and find a decent job. How to manage their money. How to avoid AIDS and STD’s. How to sidestep the pitfalls that ensnare so many of their peers and grow up to be successful, productive, peaceful adults.

The nonprofit ARISE Foundation was started by one of those “at risk” people. Edmund Benson was once considered a troublemaker. He got his life together and started ARISE with his wife Susan over 20 years ago. ARISE designs programs that train juvenile justice officers, teachers and others how to teach life skills to the youth under their care.

The programs work. Why? Because they aren’t boring. They aren’t threatening. They aren’t dull. They aren’t stagnant. The teachers don’t lecture: not for one minute. The lessons are interactive. They are FUN. They get everyone involved in role-playing, group activities and open conversation. And surprise…life skills are snuck in under the radar.

So many of the youth in the “system” have learning disabilities. They hate reading. They hate writing. ARISE programs use simple, clear language, stories and exercises that open the students up to their own creative instincts. Each lesson tells a story. Each story teaches a life skill. Before they know it, learners are poring over the stories and eagerly writing their own or drawing pictures that open windows into their minds.

Eliminate the boredom and you eliminate the urge to act out. When everyone is involved and having fun, there is no need to be aggressive or rebellious. When the instructors truly listen to the class and take resounding pride in talking with, not to, their students…that makes all the difference.

ARISE Foundation gives life skills to the people that need it most, in the ways they need it most.  For more information, please visit: http://www.ariselife-skills.org

So far the experience has been very rewarding, both financially and emotionally.

I am happy and grateful that I have stuck with the follow up 90 day program and I am confident I will continue and complete the program and continue these principles for life.

I was thinking the other night how valuable these principles really are…

I was NEVER taught how to manage money at school or by my parents, I really didn’t have a clue.

You see I did not know money is a RESULT…

Look at the tree

Fruits = RESULTS

Invisible = ROOTS

The invisble creates the visble, ROOTS create RESULTS.

So, the lack of money is NEVER the problem, it is a symptom of your inner world (ROOTS).

Everything starts out in the inner world.

In order to change our FRUITS (our money situation) we have to first change our ROOTS (our thoughts toward money).

Money Blueprint = Money Success

I now realise the importance of learning how to manage ones money and the impact it will have on my son’s life having learnt this information from an early age….his money blueprint has already been planted.

What are you programmed for?

The Jars

So Janelle…please do tell what are “The Jars?”

The crucial question for you right now is; How to manage your money? The answer is so simple via its management. The money management signifies development associated with financial habits and consistently follows them, which will lead to a constant and gradual increment of the overall financial status. Your upcoming always is in your hands you only have to do well in your present. Following money saving habits and budget tips may prove much worthy in your future as you will have a brighter as well as prosperous one.

So here are some budgeting tips for you all that you ought to go for to have money in unfavorable circumstances in the future:
• If you keep record, of your financial plans and expenses that might be a smart move. This will keep you arranged and updated as far as financial conditions are problem.
• If you make a budget for your monthly or annual requirement that’s furthermore very beneficial for you, as when we make our budget we focus on our expenses at the same time we furthermore eliminate those activities that are not necessary for us. This will increase our savings.
• Try in order to avoid betting or gambling as an inexperience individual and don’t test it only regarding fun. These tend to be nothing just a waste of time and money at the same time for you people.
• Organize your finance, if you might be one of those who have some finance regarding anything like home, vehicle, property, home appliance, machinery etc. then firstly pay your monthly payments and then have a budget for other activities. This is because once you miss paying the installment; it will affect your budget for the next session.
• If your job has any facility associated with PF, then make sure that some percentage of the salary must be deposited in it. If your job don’t have got PF facility then try to save a part of your salary through any banking or post office’s scheme.
• Tax is another major part of our budget. Most taxes must be paid on an annual basis, so keep your money for this also; otherwise, it will affect the economy next year.

by Author Diane Shawe

Wherever there are money woes, you can be sure to find crippling emotional setback. Avoid it all you try, you might just as well begin to prepare for the devastating fiscal and the emotional fallout that is sure to come. You will need to explore coping techniques if you hope to make a solid financial comeback.

Whenever a money emergency hits, it will be your ability to deal with the individual pitfalls that will hold you in good stead. It is when a series of financial hits come your way that the stress will tend to accumulate and make your life much more difficult to cope.

You will not be so overwhelmed when you can calmly and rationally look at each individual problem as it arises. If you sit, back wringing your hands with worry and allow all of your emergencies to pile into one; you will find yourself down for the count.

Calm must take center stage. You must NEVER allow yourself the luxury of panic. There is no one there for you to just take over. You are all you have.

The more you panic, the less effective you will be. You need to keep a very clear head to be able to sit down and come up with an appropriate plan. Be aware of your own tendency to sabotage your plans further. It is only when you are at your most calm that you will be prepared to get to where you need to be and then overcome.

Raising emergency cash ebook

Being Calm is the First Key to Managing a Money Emergency

At even the first hint of a money emergency, it is important not to act right away. If you do, you will inevitably make a mistake! First, before you can manage your finances again, you have to first manage your emotions. You absolutely must regain your balance before you can even begin to make a plan.

If your money emergency demands that, you act quickly, think first about seeking the advice of a debt counselor, money coach or financial planner. Whenever possible think about seeking out the aid of a financially perceptive friend or family member who can help you to come to a clearer perspective.

Remember the old adage that “two heads are always better than just one!” You will not need to make major cash investment if you are strapped. Look for a planner who will give you a one-hour consultation for £150. Often times this will be all you will need to securely turn the corner.

To find out more about 100 other ways, click to review information on the ebook and order today.

Product Details

• Paperback: 224 pages
• Publisher: FT Press; 1 edition (February 2, 2008)
• Language: English
• ISBN-10: 0132350092
• ISBN-13: 978-0132350099
• Product Dimensions: 8.8 x 6 x 0.7 inches
• Shipping Weight: 8.8 ounces
• Price: $13.22
• You can check new price Living Rich by Spending Smart: How to Get More of What You Really Want [Paperback] >>  Click Here

Have referenced Gregory Karp’s money-saving tips in the past, Such as His tip for making razor blades last Long, So I Was happy to see the always-frugal personal finance columnist come out With A new book, Living Rich by Spending Smart, Which Hundreds of grabs penny-pinching ideas, historical and puts them all in one tidy package.

Makes the case Karp early in the book That a penny saved is a penny better than Actually earned, Because you saved is the penny while the after-tax penny earned is only worth About a half-penny by the time the Various governments are done grabbing Their slices. (Karp puts this more eloquently than I just did.) Living Rich by Spending In Smart, Karp systematically goes down the list of all the places you Could be saving money, and Gives You thought after-thought on how you change your Spending Might style to Both come out happier and wealthier.

I will ADMIT That My M.O. is to try to make Generally more money versus Being an ultra-savvy shopper or saver. Thankfully, Karp perform That Some of Us are more lazy or time-constrained Than Others, so I starts the book by going after-the big three money-Sappers. If you do nothing else With The book, Could you follow His plan to get FIT and save a ton. Because I capitalize FIT use it as an Karp acronym for the big three money-savers Potential – Food, Insurance, and Telecommunications. Go After Those three and You Could make a dent in your Spending Serious soon; Karp Gives plenty of thoughts on how to do it.

Of course he’s got a zillion other ideas, Covering topics Such as bottled water, extended warranties, timeshares, ink-jet cartridges, greeting cards, hybrid vehicles, online comparison shopping, coupons, clothing Purchases, Buying Used versus new, saving on heating and cooling, eye care, credit cards, Spending holiday, kids birthday parties, cutting down on wedding Expenses-need I go on?

Depending on your personality, you get this book Could all crazy and go and do Karp Suggests Every Single Thing Until You’re wearing glasses and Have $ 8 for an army stockpile food in your basement and you’re faking your wedding cake for photos while the you’re serving the cheap cake is waiting in the back room. Or, if you’d like to be a better saver But you know you ‘re not going to get hardcore About It, Could you go through and figure out Which of Karp’s tips You Can do without feeling like you’re over-sacrificing or Being just plain cheap. Whichever way you read, you’ll still find plenty here to Satisfy You.

Read the book and you’ll get eleven Excited about the sort of saving Possibilities. You Might Also feel But Overwhelmed and end up doing none of Them Because Suddenly you feel like you’re wasting money like crazy and you’ll never get it under control. Here’s what I’d do. After That first reading, go back Slowly Through the book, like maybe a chapter a week, at least one try and idea, whether it’s changing your phone service or going to a thrift store for the first time in your life. Start slow, see what works for you, and you’ll get excited to do Probably more.

Finally, two big points Makes Karp in this book are important That I think for everyone to remember:

First, saving in one area that matters little to you (maybe buying store-brand cookies INSTEAD of Oreos) allows you to redirect the money you save to areas That do matter to you, whether That Means A better vacation or an extra $ 100 in your IRA.

Second (and this one’s big for me), studies show people’s time That happiness over eat much more from The Things They’ve done and Their memories of a life well-lived from the material Things Than They’ve Acquired.

Experiences Appreciate, depreciate assets. Save on the Latter to get more of the form.

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Dave Ramsey has an entertaining manner to teach basic concepts of good money management. Even he explains that there is nothing new in his program, it is the wisdom of how grandma lived. He includes giving to others, as a tithe, which is taught in the Bible. Paying yourself is also an important principle, and that the necessities must be met before paying off debt.

He breaks down the process of getting out of debt into baby steps. Succeeding in small goals help keep the people doing his program motivated to continue. The final step is a reward much bigger than just getting out of debt; you find peace, strength in your marriage and build a foundation to change your family forever.

The Total Money Makeover includes many personal experiences that offer inspiration in addition to the nitty gritty details for success.

The Basic Baby Steps

1 – $1,000 in an emergency fund (Christmas is NOT an emergency, this fund is for true emergencies)

2 - Debt snowball, eliminate the smallest debt first and then move to the next until all  debt, except the house, has been paid off

3 - Finish building an emergency fund, 3 – 6 months of living expenses

4 - Save for retirement, 15%

5 – Save for college funds for kids

6 - Pay off your mortgage early

7 – Build wealth, invest and give

There are many classes available that teach Ramsey’s program in greater depth and offer support. It is difficult, but it is worth it. The workshops are called Financial Peace University and are well worth the price for the support.

I highly recommend this program regardless of how much money your family earns, it will improve how you work with money. I really enjoy Dave Ramsey’s common sense. This approach has changed our lives. The Total Money Makeover, or Ramsey’s other programs, are also easily understood by children. When kids are taught young they will have an easier time staying out of debt and being financially responsible as adults.

5 out of 5 stars

- Michelle

you can take a notebook and jot down every little expense you make. this will help you know how much you have spent so far. it happens many a times that you spend a lot of money without feeling so. when you write it down you know exactly how much you have spent. so there is no “but I didn’t spend that much” , “I should have more in my wallet”.

another method is to calculate how much money you have for every week. for example 200 $. and you need 50$ to have fun on the weekend (for partying and drinking and so on) so you divide 150$ into 6 or 5 days and try to spend even less than 30$ a day so when the weekend come you can have more than 50$ to spend on your fun night. this has one advantage if you know that you can’t spend much money in the week days you commit yourself to studying lunch and supper. because you know that you can’t buy anything else or spend more therefore do anything that requires money. if you feel bored you can always go to a park and walk for a while or take a shower.

try not to buy books and borrow them from the library. or use the online journal sites that are available for you on the net. or if you have to buy a book ask your seniors if they have it and don’t need it. amazon isn’t a bad option either.

The moment your child begins to know what money is and begin coming into contact with it, is the moment educating them how to manage it begins. The first thing to teach them is the value of money and why it is important to save it.

Encourage your grade schoolers to keep a piggy bank and when they are in the toy stores with their eyes wide, encourage them to think about their purchases. Take out a notebook and have them record their favourite toys and the prices. Then when you return home, dump out their piggy bank and discuss how they are going to plan to purchase the thing that they want the most on their list.

With pre-teens you can open a co-account and introduce your teen to banking. When they earn money, require that they deposit a pre-determined amount into their savings account. This is also your opportunity to teach your teen about credit before they reach an age where they can actually obtain credit and do damage. When your teen brings up a big ticket item (less than $200, like a class, vacation, bicycle etc.), loan them the money to purchase it. Have them sign a loan agreement and agree to a monthly payment that they will repay to you every month.

Your teen adult may start to ask you about credit cards. At this point your best bet is to open a joint credit card, with a small limit (an amount you can afford to pay off if your teen is irresponsible) and teach your teen that they can only use the amount on the card that they can afford to pay in full at the end of the month. The biggest benefit to this is that you will have the ability to receive their credit card statements and keep on top of their payment habits. This will also begin to establish your adult teen’s credit.

Educating your children about credit will enable them to enter the world with good credit and give them a strong financial profile. For more information about how to manage your credit and finances visit http://www.trueassess.com.