Tracking Your Spending to reach Wealth

 The major of spending may the food, cloth, electric, the gas, and gasoline. Perhpas you have other 

most people feel tracking spending is not important to tacking my spending. the important things is making more money. I believe it because i am a simple man. I rerely eating out and use brand name any fashion so i live in very low budget.

 

Some people feel they cannot decrease thei spending because thay have decreased all theirr spending. It's imposible to reduce the spending again. Well, though it may be uselles. you can try tarcking it.

 

There si some steps in Nerd wallet. I also consider the major spending. The major spending is food and beverages. most people use debit card to withdrawn the money. Off course they can note all spending. actually it is like pieces of cake.

 

Second step of tacking spending is categorize it. 

The major of spending may the food, cloth, electric, the gas, and gasoline. Perhpas you have other 

third,  build budget 

Budget is not easy to me. Creating budget meanig therea area rule 50.30/20 The half of your money allocate to your needs. and 20% first for your saving. and 30% for wants. 

Fourth, usde budgetig apss

some budget app is good some is not. clevery use the app. I just use the traditional way using the notes. 

After budgeting, we should monitor it regullary. is the psnending beyong the budget. 

The seven step is the ways to lower your expenses. Perhasp there is a little bit spending that we can save. other ways , we can save money using the discount ? 

The last is the difficult step. i have no idea to make money today. however i should explore to make money. 

idea saving more money

I am a man who also difficult to save. I also spend my saving and finalcy i do not have much saving. i think to save more money. we can increase money by:

1. Build a deatiled budget outlining your salary and expenses. Trace the salary that you cna oncearse and reduce tha 

2. the debt can increase your expense. reduce it and allocate the money to your saving

3. limit your online shop. Buy only you need not you want. 

4. save for windfall. sometimes we get money from unexpected income such as bonus, gift, and others. 

5. Build an emergency fund. there are some unexpected income and there are some unexpected expenses too. sometimes you need money to repair your car. It is better using your emrgency fund than owe to others. 

6. Track your progress. people are happy, seeing every progress. they feel satisfied and celeb the achievement. I remember a student writes thank for herself in her thesis. 

Image by Clker-Free-Vector-Images from Pixabay

How to create budget spreadsheet

To create a budget, you are better to create budget on spreadsheet. Creating budget at the book make you tired. You should update the column every month. It will be not effective. You must rule the line above the book that it is not straight. The book could be loss. You may forget to save the book.

You can also sum the entire of number with the spreadsheet. You just write the formula correctly to sum all the spending or expenses.

It is not difficult to create the budget on spreadsheet. You must be able to operate Microsoft excel or other spreadsheet software.

1. List all income at the first column

The first place is your paycheck or salary that is also your main income. Beside paycheck, you may bring home some bonuses from the boss. If you work overtime, you will get some money too. Write down all of your income.

Some employee also do side jobs. Write down it too if you have it. The business also may makes money for you. Write when the business bring you profit.

Categorize the income into two i.e. fixed income and variable income. The fixed is the income that you receive every month such as salary or paycheck. Meanwhile, the variable income is uncertain income that you receive every month. For example, business profit, royalty, and so on.

2. List the entire of spending below the income

There are two spending categories i.e. fixed expenses and semi fixed expenses. Write down the food that you can spend in a month. Do not miss a food even just one bottle of syrup. If you miss an item, the budget will not match.

You must pay the electric, water, heater, and phone bill. Write the previous bill that you have paid. The amount of number usually is just bit different for next month bill. Perhaps you watch the cable TV so you should write cable Tv bill on your budget. 

3. List the entire debt you have

To eliminate the debt may be the short term financial goal. The debt forced you to share your expenses and reduce your spending. It may reduce your lifestye.

Write down the mortgage loan that you should pay every month.

You must have credit card bill too. Earmark some money to credit card bill. Perhaps you still have debt to car lease company. 

4. List the save or investment

Saving and investment is also include in expenses; however, it will makes money for you someday. Clearly write down the entire saving and investment.

Read Also 

Personal Budgeting Concept 

Hos to budget to saving

9 Benefit of Budgeting of your money

To manage your money well, you should have a budget. However, some people are not interested with it. They are lazy to create a budget though there are so much benefit in budgeting the money. Here are the benefit of budgeting money.
1. Organize your money well
Though an employee get $120,000 per year, he cannot saves any peny. He used to spend entire money. Sometimes, he borrow the money from the parent. The employee cannot manage the money well.
2. Help us to save
The budget encourage us to save. No matter how much money that you can make, you should still save your money. Earmark 10% of the salary for your saving. You are better to save your money in front which means you save the money once you receive the money.
3. Focus on the goal
The aimf of create goal is to reach the goal. For example, you wan to buy Nintendo in one year. In the budget, there is a post that dedicated for Nintendo.
4. Aware your money
A man who does not create jobs may be confused when the money almost spending out. He do not know where he has spent the money. He become curios that someone near him has stolen the money. He ask the wife, or child about the money.
5. Free from debt
The Budget help you to settle the debt. The budget may not increase your income to pay the debt but it can help you to manage your money so you can pay off the debt immediately. Most budget that people create is to prioritize to settle the debt than spending money.
6. Protect you from stress
By budgeting your money, you know where your money spend. Therefore, you should not stress with the loss of money. You must spend it at some spending items.
7. Early warning
The budget is an alarm that remind your finance is running out.
8. Determine take the debt
Should we take the debt? You can take the debt if you feel you can pay it. Check the budget. Is there excess cash that you can use to pay the installment?
To me, I prefer not to borrow from other people. I just want to save for buying something or starting a business.
9. Communication with people near you
You can tell to children who ask something big that you have limited cash. Your kid may be understand your situation.
Read Also:
Four Financial goal mistakes
What should be included in Financial planning

How to cope when a family member cannot work because ill

Life is unpredictable. We want our body health but sick could attack us. Tough, we have kept our body health by eating health food, doing exercises, and so on. Some company will fire the ill employee because the sick man is not productive anymore. The company will replace the sick man with other man.
The company may pay the last salary and some severance for the ex employee. However, the money may be not enough for the sick man moreover the sick man is head family who responsible for the family. The worst, the wife may have no job. Some wife must apply a new job.  The wife may leave home to support the family. Perhaps a new problem will come. When the mom should work they should leave the kid who needs the mom.
Loosing the main of income source is a bread dream. For a couple months, the family can live from he severance, however, they should cope the situation. Here are some actions that you need:
1.    Use Saving or investment
It is time to use umbrella I rainy day. That is why we save some money. It is time you use the money. You may have some money that you have saved for yearly. The saving may help your finance for a while. However, you should make money before the saving run down.
Investment also can help you in this situation. Perhaps you have so much stock that you have invests for dozen years. You may just receive passive income for investment. Receive dividend yearly without doing anything.

2.    Re budget
Since the income side of budget decline, you have to make some adjustment in expenses or spending side. Trim the spending that you can. You have to reduce eating out that can save hundreds dollar in a month. Hiring the DVD is cheaper than going to cinema.  You have to spend less for entertainment budget.
You should also think to find the alternative income. You can start business now to make money.

3.    Support your family member
Do not blame the sick man but you should motivate him or her. It is not his or her mistakes that he or she suffer sick. The sick need your support and some motivation may help for them. They may recover from sick someday. The support can heal some disease especially psychomatic.

4.    Don’t be panic
Yes, most people will panic if someone ill in this family moreover the family member is the main source of the family income. They think they will not have money and they must suffer. They know they should cut some expenses especially for leisure. 

Panic does not help you. You have to construct the steps to cope your problem.  Stay calm side the bad situation.

source

http://notmadeofmoney.com/blog/2013/02/how-to-cope-when-a-family-member-becomes-ill-and-cant-work.html

Financial advice for teen

The rich people son's often get financial knowledge from the parents. They can manage the money better since they are teenager. As a teenager, you can follow the advice to make your life better.

1. Learn about budgeting
Your mom or father give allowance for monthly or for daily. It is no problem whether your parents give the allowance, you have to save the part of allowance.
Calculate what your needs such as lunch, bus fare, book, notes book, handphone voucher, cloth, and others. List the spending on your notes and the type all the entries on spreadsheet. 
The amount of spending should be balance with the allowance. As a teenager, you can seek out the new income. Sell the used bottle or can to the recycle shop.
Today the teenager can make money easily with internet. They can blog and make dozen or hundreds dollar.  It will not takes the times to blog. You need only one to two hours a day.

Photo by : Onemoneydesign
2. Saving the excess allowance
Do not return back the allowance to your parents. You are better to save the excess money for other things. Perhaps, you want to buy iPad or new notebook. There are some book or dvd that you like but you have no money. You can save some money and buy it. 
Save the money in the cash box or piggy bank. The piggy bank will be full if you save constantly. Remove the money from the cash box to the saving or investment. Ask your parent to invest your money at equity, mutual fund, ETF, and others. You can buy precious metal too and save it to your parents.
3. Financials goals
The teen should have a goal? The short term goal is the goals that you can reach in one year. Example: You want a new skateboard, or chicken coop at the backyard. Write the goals in your diary or blog.
As a teenager, you must have a ideal. Some teenager are confused to choose the ideal that is fits with them.Consult the ideal with your parents, teacher, or friend. They may direct you to right ideal.  Some kids ideal is to become a doctor. The teenager can help the father to enlighten the medical school fee that is very expensive. Find the scholarship to support the medical education fund. Borrowing from student loan may be not a good idea. You will difficult to pay off the debt.

Read Also:
5 Ways to save money on Food
The envelope Budgeting
Fundamental Investing for Financial Planning

The budget for the worker who has no field income

Not all people can receive salary like people who work for the company. Sometimes, they get money each three month. For example : The farmer who plant corn, sorghum, paddy rice can get money after harvesting the cerelia. It need at least three month.
Due advanced technology, some surfer prefers to work as the freelancer. They can get some project on internet. They will be paid after the project has done. Sometimes the employer does not pay them because they do not satisfy with the project or they may fraud you. They said that your work is bad whereas they use your work.
As the freelancer, you have uncertainty cash flow. Therefore, you have to create a budget that is specific for instable income. These are the steps:
1. List all expenses
The freelancer must have expenses too though they cannot make money every month. List the fixed spending such as debt, mortgages or house rent, income tax, insurance, food, and else. Do not forget to list semi fixed spending such as electric bill, heat bill, internet bill, cable tv, cloth, and so on. Sum all of  the month spending.
2. Sum the income that you might receive next month. You may get the benefit from service fee, royalty, consultant fee, and others.
 Alternatively, you count the income that  you receive last year than divided by 12. It can smooth your revenue.
Do not list the income too optimistic. For example, you will receive hundred percent of your project that you have done last month. Some boss may pay you next month but some other may not pay you. Some client want to pay you but they want to pay it next month. You have to compute the income carefully.
3. Compare the income with the spending. If the income is higher than the spending, you can allocate the excess to the saving or investment post. You can also buy something if you need it.
If, on the other hand, your spending is higher than income, you need to reduce the spending. Alternatively, you borrow the money from other. By borrowing money, you can fulfill the daily necessity for temporary. It is not good to add the debt, remembering the high interest that you should pay. The better ways to make your budget balance is reduce the spending. As a freelancer, you need to trim down any spending due you do not have fixed income.
Read Also :
Disadvantages of Budget
Personal Budgeting Concept
Pros and Cons Budgeting your Money

How to budget when you are broke

Some people has been broken due to the uncertainty global economic recently. Naturally people will cut some spending to keep the budget balance. It is the easier option due it does need money. The broke people should consider increasing the revenue.
Here are the steps to budget of your:
1. Decrease "unnecessary" spending such as cinema, cable TV, magazine subscriptions, eating out, and else. You can read news at internet that is free.
2. Decrease your saving post
Saving is good for your future. You will need the money for your kid school or university. However, you need more cash to other important budget post.
3. Prioritize on bill
Do not make your life more difficult by delaying the bill. Pay the bill such as water, electric, and gas. You must be difficult when the electric company shut your electric.
If you still have mortgage debt, you need to pay it or the interest will increase and it is load you. The floating rate interest rate may not good for you.
4. Find other income sources. Be creative people by finding income sources such as blogging, writing, become a volunteer, and else. Some people can get dozen, hundreds, or thousand dollar. Do not just cut your spending but you have to increase the income side. 
5. Go to anywhere with public transportation
Being broke, you do not have to own car. Go to anywhere with bus, tram, subway or train that is cheaper than driving the car.
6. Create a tight budget
Trim down some expenses that you can do.
7. Negotiate your credit
Send the letter to the bank or financial institution that you owe to them. The letter content is the proposal to negotiate your credit. Explain that you are broke and you need low interest. It might be difficult to ask bank to reduce the interest due the bank is also difficult to get the profit. Some people also propose for interest cut. However, it is not wrong to try it.
8. Stop leasing or credit
If you have lease car, you can stop the lease. Alternatively, you can ask lease transfer to whoever need lease car.

Read Also :
Personal Budgeting Concept 
How to create Strict budget
Disadvantages of Budget

Pros and Cons budgeting your money

Creating budget is an activity to control the finance. It is similar to a handbook that guide us to spend what we need and find money to fulfill the daily necessity.

In an office, there are two employees who have different salary. Mr. Patrick is a high paid employee in the office who cannot fulfill the daily necessity. The salary is not enough for him whereas Mr. Straw, a lower paid employee, can fulfill the daily necessity. Mr. Straw also invests the money to stock and precious metal. Both, Mr. Patrick and Mr. Straw is married with two children.

Mr. Straw also creates the budget every month. He is very disciplined man and obey the budget. He never takes the credit to fulfill the daily necessities and he has no credit card. He prefers to buy anything cash so he never receive credit card bill letter. He has plan to school the children to medical school or university.

However, the budget also has some weakness. Mr. Straw always creates the budget every month. He always evaluates the budget at the end of the month. Sometimes Mr. Straw should work until late night to make correction.

Mr. Straw's lifestyle changes as the budget has written. He decreases some spending for other spending or investment. He prefers to go to office by bus or subway. He just uses the car at the weekend so he can thrift some dollar. Sometimes he tired to office because he uses subway.

Some people dub Mr. Straw as a miser people. They think he is able to use the car but he does not use it. Mr. Straw supposedly calculates the aggregate benefit of using car or subway. Using car may be expensive but he can arrive in the office early. He does not need to stand inside the subway. Unless Mr. Straw is still young or has health body. Going to office with subway is not problem. If Mr. Straw got sick, he will pay for hospital fee that it is not cheap and he must be rest.

The Mr. Straw should delete some spending because it is not recorded on budget. The budget makes Mr. Straw become spending mindfulness. Mr. Straw supposedly manages to increase the income. He can use the asset such as car to make money. He can rent it to the rental car. When he needs the car at the weekend, he can use it.

Personal Budgeting Concept

To manage the cash flow, some people create a budget. The budget helps people to track where the money go and where the money come from. Most government, municipal, organization also create budget to manage the organization finance. They afraid they missed some spending or income.
Creating a budget is not difficult. You need to understand the budget concept. Here are some concept about budget:


Purpose
Supposedly the budget has purpose. The creator must know what the budget for. Most budget are made for living frugal. He or she should recognize the income and the spending.
The purpose is a corner stone to create the budgeting.We can allocate the income to some spending post. For example, we want go outside. We should allocate our income for vacation that needs thousand dollars. The creator can set on how long we plan to vacation. Perhaps we want go to vacation next three years.
Simplicity
The budget must be simple and you know what the mean of your budget. You can create the budget that different with other people as long you understand about it.
Use the spreadsheet software such as Microsoft excel or open source spreadsheet. Write your revenue items on the top of the spreadsheet and sum of all revenue. You can write the spending below or the following the revenue. Compute all of spending. Last, Diminish the revenue with the spending.
Flexibility
A budget must not be straight. It must be flexible to pay the unexpected spending. For example, we have set the cereal spending a thousand dollars a month. Unfortunately, the cereal price increases 10 percent. Reduce our cereal spending is not reliable you and your family will starve. That is why you have to pay the cereal and use money from other post such as leisure, and saving. At the end of the month, you can evaluate the cereal spending.
Budgeting for irregular income
Some people has irregular income that they can get anytime. The freelancer work usually generate irregular income. They cannot predict how much money monthly. Sometimes they do not get any money but sometimes they get so much money. The budget also consider irregular income that can balance the spending.
For freelancer, they can compute the average of income in a year. Sum of all revenue in a year and then divided with twelves ( the amount month in a year).

The Rich Man Habit

Rich man has some habit that is different with ordinary people. With a little money, they can make them rich; meanwhile, a poor people cannot get benefit from so much money. I have heard a millionaire can rich again after bankrupt. He just needs a trust from people to get the capital.
Here is some rich man money habit that you can follow it.
1. Saving first
Most rich people save the money for short term or long term purpose. The rich man does not want to spend the money for today. They set revenue aside for saving. The percentage of saving is that depend on your revenue. Most financial experts suggest saving ten percent of the revenue. You can increase the percentage when you receive more money.
The rich man invests the money at profitable investment such as stock, mutual fund, ETF, and precious metal. As the economic decline, some rich people remove the investment to asset such as land, gold, collectibles, and so on.
2. Budgeting
To control the spending, the rich man create a personal budget that describe the earning or spending for next month or year. The budget tell the owner on how much he or she going to spend next month. 
3. Avoid debt
Some rich people avoid debt especially unproductive debt such as consume debt, lease car, and else. The debt could make people bankrupt. Do not buy anything if you have no cash.
A man should not have propose jaguar lease car, if they do not have money. Use used car or buy Japanese or Korean cheap car.
4. Prioritize to pay bill
A household needs electric, gas, telephone, and others. Allocate part of salary to those spending post. Do not delay it until the company cut the electric, gas, or telephone. 
5. Frugal living
If you have small family, you can live at small house. The small house must be cheaper and it needs cheap cost to maintenance it.
6. Charity
Help other people means help yourself. Giving part of your money to other people will not kill you. Some people may help you someday.
For example, you are an entrepreneur who produce noodle. You donate your money to unlucky people who live around your factory. The people may buy your product and it will increase your revenue.
7. Working hard
Certainly, most rich people is hard worker. Some of them are workaholic. They believe that to reach wealth, a man should work hard. Certainly, they must pray and remember God.