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October 01, 2006
Get Control of Your Budget-The Bottom Line
Every family should have a budget. There is no way to control your finances without one. Gaining control of your money is essential to reigning in your family budget expenses.
Budgets don't have to be complicated and can be easily set up and monitored using a computer spreadsheet. Your monthly spending should not exceed anticipated after-tax income.
An emergency fund should be a basic part of your financial plan. A minimum of at least three months' family take-home pay is recommended. The money should be held in a low-risk, easily accessible account or security. Understand the difference between income and cash flow. All that really matters is how much money you have to spend when all's said and done.
If you have a spare room in your home, consider renting it to a foreign student. You can earn several hundred dollars a month.
Working from home offers good opportunities to supplement the family income, but steer clear of fraudulent promotion schemes that offer to pay big money for such activities as envelope-stuffing. Check with your local Better Business Bureau before signing up for anything.
Make smart use of "extra" cash. Don't just blow the money.
If you have a financial crisis, begin to reduce spending immediately. Prioritize your budget to identify those areas of maximum potential saving. Make sure the whole family gets involved.
Shop wisely. Swap children's clothes with family and friends. Be wary of "no money down" offers. Bargain for discounts where appropriate.
Think carefully before buying a pet. The cost of caring for the animal is likely to be much higher than you would expect. Veterinary bills are especially expensive.
Community-based exchange services offer a way to have needed work performed without spending real dollars.
Car sharing can be a way to dramatically reduce your automobile expenses.
Leasing a car is not less expensive than buying, although the monthly payments may make it appear so. Check out the total costs involved, and remember that at the end of a lease, you own nothing.
Posted by Colin on October 1, 2006 01:37 PM | Permalink |
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