YodZiaN

I have always wanted to be rich. I want to live a life filled with luxuries. I want to be the envy of others. In my opinion, wealth is something that could buy a lot of things. Money can bring you happiness. However, I do not deny that there are many things that money cannot buy. In fact, I believe that there are other more important things in life than money.

I am born into a middle class family. My family is neither poor nor rich. We are able to afford basic necessities and some luxuries. Also, I am blessed with parents who care a lot for me. They work hard to provide for me and my brother. My brother and I are able to lead a carefree life. I am thankful for all that I have. However, I do not deny that I want more. I want to be truly rich. I want to be able to afford everything that I want.

Being rich can make my life more comfortable. I will be able to buy a big house with servants. I will be able to afford luxurious cars with chauffeurs. I will be able to dine in expensive restaurants. I will be able to afford a private jet in which I can visit all the beautiful countries. Pretty girls will flock to me. I will be able to enjoy relaxing spas. People will look up to me. I believe that money will make me a happier person. I may sound superficial. But these are things that truly only the rich can afford and I to be the rich. If you were given a billion dollars right now, I am sure that you will be a happier person.

I believe that money can buy many luxuries. However, I feel that health is still the most important. I would rather be healthy than Read more…

If you are going to set up a household budget, you’re going to need to prioritize your spending. You simply cannot buy everything you want. You have to purchase the things you really need first.

So, how do you separate your “wants” and “needs” so your household budget will be successful?

To set up a household budget you will need to do three activities:

- List your income.
– List your expenses.
– Set priorities and make changes so that your income will be greater than your expenses.

Listing your expenses is important because it allows you to see where your money goes. Setting priorities will help you control spending so it is less than your income.

You’ll need to keep an accurate record of everything you spend. Carry a notepad with you so you can write down the cost and short description every item you buy.

You can group individual items into categories to make your expenses more understandable. Keep recording your expenses for a full month.

After a month of recording everything you spend, you’re ready to set some priorities. This means that your household budget may reduce or eliminate spending for some items in order to make your expenses come below your income.

It’s always painful to begin cutting back. But, you will probably be the first to admit that your spending has been somewhat out of control.

So, are there objective ways to establish priorities within your household budget that can help minimize the pain of setting spending limits?

=== Objective Standards for Household Budget ===

Yes. The primary contribution of respected psychologist Abraham Maslow was a hierarchy of human needs. This prioritizing of needs can give you some guidance for setting your household budget priorities. This hierarchy has been described in the following form (starting with the most important level):

1) Physiological needs (food, water, sleep, personal hygiene)
2) Safety needs (employment, security of income, protection from violence, family security, health)
3) Love / Belonging needs (friendship, family relationships, social networks)
4) Esteem needs (recognition, self-respect, sense of contribution)
5) Self-actualization (ability to use your talents, creativity, appreciate life)

=== Applying The Hierarchy to Your Household Budget ===

In setting up a household budget, you should allot money for items that satisfy the physiological and safety needs before allocating money for needs at other levels. Let’s see how this works.

The physiological needs are the most important. You need food, water, sleep, and personal hygiene to survive. This helps set your household budget priorities.

Expenses related to these needs take first priority. Basic nutrition, shelter, and personal hygiene expenses take first place in your household budget.

Next in line are the safety needs. These needs include enabling you to support your family and keep them safe. Basic expenses for transportation to and from work, clothing for work, making your home and neighborhood secure (which include taxes), and health care are included here.

But, here is where you need to be careful.

Let’s look at some of the household budget items included in these first two areas such as food (basic nutrition) and transportation to and from work.

It is easy spend more money than is required to satisfy these basic needs. You may confuse expenses for basic necessities with money that would contribute to recognition and self-esteem (need levels beyond the basic levels).

For example, buying nutritious groceries and making healthful meals at home helps fulfill your basic physiological Read more…

One of the hardest things that young couples report during their first year of marriage is getting to grips with joint finances. While most are willing to share what they have with their partner, they are not sure on the best way to bring this sharing into effect so that they can share with their new partner, but at the same time maintain financial security and a degree of independence. Some couples resolve this by resorting to separate finances and others find a way to keep things together, but it is generally reported as one of the biggest strains on newly married couples.

As well as this, there is also the problem that many people find it difficult to budget and control their finances. It is one thing to fail to keep track of expenditures when you are single, but when you are married you have more to answer to than just yourself. This is especially true once you have children. If one partner fails to keep control of their spending while the other is forced to worry about finances, it can create an enormous strain on the relationship.

Family Budget

One of the best answers to this dilemma is to create a family budget. This should outline what is allowed for the various expenses, which is to be responsible for what expenses and how much each partner can spend on discretionary expenses. While this may seem like a drastic response that takes away all the responsibility and financial independence from both partners, all it is really doing is getting both parties to sit down together beforehand and work out how much they can afford to spend on what, and then Read more…

Despite the high degree of discomfort discussing financial issues, asking for help before a financial crisis strikes will help you in the long run. In many societal circles, discussions about money are considered taboo. It is not generally appropriate to begin sentences with, ?I hear that you and the Mrs. are having financial troubles?.

Credit counseling organizations have the opportunity to educate a wide variety of people through, both one on one counseling and public seminars. It is noticeable that socioeconomic boundaries are nearly non-existent when looking at the lack of financial knowledge and discipline. Just because an individual has a six-figure salary does not mean that they are more financially savvy than someone who makes less than thirty thousand per year is. In fact, in some instances it can be quite the opposite.

Credit counselors work with individuals who receive high paying salaries, yet have struggled for years trying to pull their finances together. Motivated by pride and the belief that someone with a graduate degree doesn?t need help managing money, these individuals can just as easily dig deeper into Read more…

Choosing a financial planner is a very important decision. Who will you trust to handle your life savings and plan your financial future? The fact that someone claims to be a financial planner does not qualify him or her to handle your money. They must have the proper certification, experience and knowledge.

The Four Cs of choosing a financial planner

1. Credentials

?What certifications, college /university degrees and experience does he/she have?

?How many clients or how much money does he/she handle?

?Make sure the planner is registered with the Investment Dealers Association in your area or Certified by a Government body

2.Compensation

?How are you compensated? Flat fees, salary or commission? (Beware of those who earn big commissions for placing you in high risk funds)

?Are there any hidden underwriting fees with my investment fund?

?Will you explain all the cost involved with each investment?

?What is the cost of liquidating or canceling my account with your firm? (Good to know, if you decide to switch funds or investment companies)

3.Characteristics

?What is your investment philosophy?

?Do you focus on domestic markets, foreign market or both? (Answer should be both)

?What is your specialty? Your strongest area? (Global portfolio management, no load mutual funds, stocks, bonds etc)

?How do you view risk and how does your philosophy fit my risk tolerance?

4.Customer service

?What services does your Read more…

A budget is a very important tool when you are trying to meet financial goals. It helps you to see where your money is going and therefore helps you determine where you can cut back. It also gives you something to go by when you get paid rather than piddling your money away. If you are serious about managing your money, a budget is an absolute necessity.

When my husband and I first got married over 14 years ago, we had no idea of how to manage our money. Well, my husband had a little idea, but not me. I worked but I was very frivolous and piddled my money away. We always had a hard time paying our bills because of this. I had nothing to show for my money except make-up, restaurant reviews and other un-necessaries. Then my son came along and changed all of that. I wanted to be a stay-at-home mom.

We also wanted to have more money to travel, save for retirement and college funds, and purchase our own home. This was our motivation for preparing a budget. We knew we had to start managing our money better to be able to do these things and it seemed impossible to have any of it at the time but we had to start somewhere. You should do some thinking as to why you’d like to have more money. Everyone wants to have more money for some reason or another. When you think of reasons, write them down at the top of a piece of paper. This will help you stay on track and give you motivation to stick to your budget.

So anyway, we made a budget and we stuck to it because we had our goals in the back or our mind — first and foremost, to be able to stay home and raise our son. The way we made our budget was to list out everything we HAD to pay to live. We listed rent, power, garbage, phone, gas and food and the amounts we paid on them in a month. Then we listed our credit card bills and the monthly minimum payment amounts. We listed miscellaneous for items like clothing or birthdays that come up. You can list your budget list on the paper that you listed your reasons for wanting to save/manage money. You’ll have to put some thought into some of these items such as food and gasoline. Be sure to be accurate and honest about how much you spend on these items. Look back into your checkbook and add it all up. If you write down less than what you actually spend, it will be harder to cut back.

Once we had made our list of everything we had to pay, we looked at it to see if there was anywhere we could cut back. We saw that we could probably cut back the money we spent on food by using coupons, shopping sales and discount stores, so Read more…

“Don’t find fault; find a remedy.” — Henry Ford

B-u-d-g-e-t. The very word can cause us to tremble in our new boots! But a hard-working soul need not fear — there’s a simple way to win the battle of the budget. It’s great fun, and what better time to get started! So what’s the secret?

*** Build Some Rewards and Fun Into Your Budget! ***

Think this tip is too simple to be effective? Consider the last time you blew your budget. You were probably zipping along just fine. Life was great. A month later, you slipped up just a bit. Two months later — boom! Your budget’s blown, big time. How long did it take you to get back on track after that?

Think back on your most recent project. Was there a reward waiting for you after completion? If not, did you feel as if the project took forever, with no light at the end of the tunnel? Your rewards will serve as a mini-light at the end of your tunnel.

How to Set Up Your Goodies List

Here’s where the fun starts. Your Goodies List will be your own personal list of rewards, fun, or items you’d like to buy or do. Jot down some things that excite you, things you can look forward to. Why? Because there’s no budget on the earth that will work if you have no motivation to keep going.

How to Use Your Goodies List to Motivate You

For every month (or week) you’re able to stay on track with your budget, reward yourself with one item from your Goodies List. Keep your reward in a range you can easily afford (just make sure it’s enough to motivate you.) Try $40 or less for a monthly reward. For weekly, try $10. Even $5 can energize you.

In the past, you might have felt as if you were ‘giving up’ things to stay on track. You’ll find that you’re not giving up anything at all. You’re simply targeting the things you really want or need, and rewarding yourself for not making those budget-blowing purchases. It’s easy to burn out or feel deprived if there’s nothing to show for your hard work.

Affordable Suggestions for Your Goodies List

** Longing to change the colors in your bathroom? Try:

A towel to match your new color scheme.

A can of paint

A new shower curtain

A new rug

** Dreaming of taking up writing? How about:

A course on writing

A book on writing a best seller

Paper, pens, resources, software for writers

A new writing area in your home

** Yearning Read more…

Need a few extra bucks to help pay down debt or build up your emergency account? There are some simple ways to do it without working another job or being away from the children even more. Using your *strengths*, brainstorm ways to zero in on new sources of income.

What ARE Your *Strengths*?

What are you really good at?

What do your friends/coworkers compliment you about, over and over?

Are you a perfectionist in certain things?

What things do your friends/family tease you about, or find irritating, because you do these things so well?

Do you Enjoy Working with Numbers?

If you’re great at balancing your checkbook, you could pick up a few extra dollars each month balancing for friends who hate doing it themselves. A gentleman I know used to order pizza for the bank teller in exchange for keeping his checkbook balanced for him. He hated doing it. The teller found it very easy. Perfect fit!

Are you Artistic?

Perhaps you’re a penny-saver. You’ve created a beautiful decorative container to hold your pennies. Would they make nice gifts for others? Make some extras and see how they sell at Christmas bazaars. Give away as gifts to nieces, nephews, grandchildren. Others may see them and want one. Some may take them to school and show them around.

If you make it fun for kids to use them, parents will greatly appreciate it. In the meantime, children are learning a great savings habit.

Are you a Perfectionist?

Can’t stand a dirty car? Is your car always spotless, inside and out? Next time someone compliments you on it (or wishes their car looked great like yours), let them know you’ll keep theirs up to snuff for a few bucks every week or two. Their friends and neighbors will notice, and before long you’ll have created a steady stream of income. Around here, the salt and chemicals need to be removed on a regular basis during snow season.

Do you Enjoy the Great Outdoors? Use the Seasons!

Fall

How about raking leaves? Bag up the leaves and take them with you for homeowners who don’t enjoy this type work, or who can’t do it themselves. Fall is also a good time to give lawns a final mowing. Mow the leaves up with the final grass cutting for the year. Read more…

Do you know where your financial “power spots” are? The contemporary methods of feng shui associate prosperity issues with the back left corner of any space. Stand at your front door facing into the house; your wealth area is at the back of the house on the left-hand side. There’s also a wealth area within each room: facing in from the doorway, it’s the corner area in the back of the room on the left-hand side. Where are the wealth areas within your office, living room, kitchen, and bedroom? Now that you’ve identified your money power spots, here are some quick and easy ways to apply feng shui to these spaces:

1. Clear out any clutter from these important areas. Clutter is a sign of stagnant energy, and clutter in your money power spots can clog up your cash flow. Getting rid of clutter is one of the most powerful ways to shift the energy of your power spots into high gear.

2. Fix things that are broken. Anything that doesn’t work as it should is a sign of something wrong in the area of your life that corresponds to that part of your space. Examine each of your money power spots to look for anything that needs repair. It’s time to do something about that loose doorknob, non-working light switch, stuck file drawer, or clock that doesn’t keep correct time, to name just a few possible examples. Remove items like these from your power spots or fix them so they work properly.

3. Enhance your power spots with symbols of prosperity, such as a bowl of coins (add your loose change to it every day), a “lucky bamboo” plant, or anything that symbolizes success and prosperity to you. There are lots of Chinese luck symbols available, but you don’t have to use them unless you want to. A picture of your dream house, or a model of that luxury car you long for, is an effective money symbol because it has personal meaning for you.

4. Accent your money areas with the colors green and purple. Green symbolizes vitality and growth, and purple is the color of wealth. Place a bowl of green and purple grapes (real or artificial) in the wealth area of your kitchen, to symbolize abundance filling your home. If you use real grapes, it’s okay to eat them, just add more from time to time so the grapes remain fresh and the bowl is always more than half full.

5. Pay attention to how you handle money every day. Do you keep paper money neatly sorted in your wallet or money clip, or is it jammed in there any old way, or crumpled up at the bottom of your pocket? Clean the clutter out of your purse and wallet, and start handling your money as though you value it.

6. If you neglect your money, it will neglect you, so be sure to balance your checkbook regularly and pay your bills on time. Put your checkbook in an attractive cover (choose green, purple, red, blue, or black) Read more…

Unlike a fixed monthly cost such as your mortgage or car payment, the amount you spend on groceries each month is somewhat flexible. While the common advice of clipping coupons and buying generic brands to save money while shopping is sound, by far the best way to truly keep your grocery shopping expenses under control is by understanding how grocery stores entice you to spend more than you really want. By fully understanding the ways grocery stores encourage you to spend, many of which you probably never even noticed before, you can combat their strategies and spend money only on the merchandise you really need.

Although a grocery store may appear to be simply a place to purchase food and other household necessities, in reality it’s a cutting edge example of “how to sell more than consumers really need.” Since you are the consumer, it’s important that you realize these sales tactics so that you walk into a grocery store to get only what you need while avoiding everything else that the grocery store wants to sell you. Here are some ways that grocery stores manipulate you into spending more than you had planned and some simple steps you can take to counter them:

Smell: One of the first things you’ll notice when you enter a grocery store is the mouth-watering smell. There is a specific reason why grocery stores smell of freshly baked goods, and also why the bakery is almost always found near the store entrance. The reason is that a bakery making bread and desserts gives off an enticing smell, and that smell is likely to make you hungry. The grocery store also knows that if you feel hungry while you shop, you are likely to spend more money – a lot more – than if you are not hungry.

A simple way that you can combat this is by going grocery shopping only after you have had a meal and are full. If timing doesn’t allow for you to do this, at least drink a couple of glasses of water before leaving to make you feel full before shopping. Shopping while you’re full makes it much easier to resist the great smelling temptations that the grocery store will flaunt in front of you.

Overall Store Layout: Did you ever notice that when you only need to buy a few staple items, you have to travel the entire grocery store floor in order to get them? While one might assume that the convenience of putting basic staple items in the same general area would make happier customers, grocery stores know that the longer that they can keep you in the store, the more money you are likely to spend. They also know that making you walk as far as they can inside the store will make it more likely that you’ll pick up impulse items. Stores are specifically designed in such a way as to make you spend as much time as possible inside them and walk the entire store floor to get the basic staples that everyone needs.

Although there is no way around going to the far corners of the store to get the groceries you need, you can avoid the trap of impulse purchases on the store floor by taking the time to make a list of the items you need and sticking to it when shopping. Getting into the habit of making a single trip once a week to take care of all your grocery shopping needs instead of several smaller trips throughout the week will also greatly reduce your time in the store and the chances that you’ll buy items you don’t really need.

Item Display Layout: Manufactures of brand named products pay hefty stocking fees to stores to have their merchandise placed on the shelves at adult eye level (and child eye level in the case of products aimed at children such as cereal). Manufactures are willing to pay these prices because they know that you are much more likely to purchase something that you can easily see as you are walking down the aisle than something you have to stop and search for. The result is that the products placed at eye level are usually the most expensive.

Before grabbing the first item you see, take a few seconds to look at the upper and lower shelves. Similar products are placed together and simply looking will often reveal the same product at a much better price.

“Sale” Merchandise: Grocery stores will advertise a certain number of items at rock bottom prices (called “loss leaders”) to get you to come to the store. While these can be genuine bargains, don’t get fooled into thinking that everything that has the words “sale” or “bargain” above it is really that. While aisle ends are reserved for these “bargains,” they aren’t always the deals they seem to be and the discounted products are often displayed along side higher price products. You can sometimes even find similar products in the regular aisle section that are less than the end of aisle “sale” merchandise.

The important thing to remember when grocery shopping is to focus on the price of the product Read more…