most read
Therapy number one: Make A Budget
A budget often starts with a documented plan for weekly or monthly spending for a definite period of time, usually a year. A person may make a budget by first estimating his or her short- and long-term income, and then estimating short- and long-term expenses that must be covered by that income. The second step in keeping a budget is to set up a record of money actually spent. Together, these two steps are the basis for drawing up a balance sheet. The final step is to use the balance sheet to keep track of how the planned budget compares with actual spending, and adjust it for inconsistencies.
A person’s goal in budgeting is to achieve a positive end balance on the bottom line of the balance sheet, so that income exceeds expenditures. If a negative balance remains at the
bottom line, a person will want to find a way to spend less or to earn more in order to achieve a positive end balance.
Most people have a number of immediate financial responsibilities and certain financial objectives. In planning a budget, people generally keep both their immediate and long-range objectives in focus. Before drawing up a budget, it helps to answer the following questions:
(1) What are my earnings, what may they be in the future, and how will they affect my personal spending and saving habits?
(2) What are my financial assets and liabilities?
(3) How much money will I need to put aside to pay for fixed or regular periodic expenses, such as rent and mortgage payments, non seasonal utilities charges, taxes, insurance premiums, or loan payments?
(4) How much money should I keep in savings for variable expenses, such as food, entertainment and recreation, clothing and other personal goods and services, seasonal utilities charges, and transportation? (For monthly budget planning, a person may want to track a year’s expenses and divide that by twelve.)
(5) How much money should I keep in savings for unexpected costs, such as changes in the cost of living, unemployment, medical emergencies, or natural disasters?
(6) What are my long-term financial objectives? For example, how much will I need to save to pay for a trip, college tuition for myself or my children, a home, or retirement?
(7) How much, if any, money do I plan to invest, and what kinds of short- and long-term yields can I expect from my investments?
After answering these questions, the next step is to establish a budget best suited to personal needs.
Stay connected as we bring to bare other cures in our subsequent publications.<read more>
CURES FOR A LEAN PURSE
Our society is in a very unhappy state because a few men know how to acquire wealth and therefore monopolize it, while the mass of our citizens lack this knowledge and therefore languish in abject poverty. In the paragraphs that follow, we will unravel the mysteries to fattening one’s lean purse.Therapy number one: Make A Budget
A budget often starts with a documented plan for weekly or monthly spending for a definite period of time, usually a year. A person may make a budget by first estimating his or her short- and long-term income, and then estimating short- and long-term expenses that must be covered by that income. The second step in keeping a budget is to set up a record of money actually spent. Together, these two steps are the basis for drawing up a balance sheet. The final step is to use the balance sheet to keep track of how the planned budget compares with actual spending, and adjust it for inconsistencies.
A person’s goal in budgeting is to achieve a positive end balance on the bottom line of the balance sheet, so that income exceeds expenditures. If a negative balance remains at the
bottom line, a person will want to find a way to spend less or to earn more in order to achieve a positive end balance.
Most people have a number of immediate financial responsibilities and certain financial objectives. In planning a budget, people generally keep both their immediate and long-range objectives in focus. Before drawing up a budget, it helps to answer the following questions:
(1) What are my earnings, what may they be in the future, and how will they affect my personal spending and saving habits?
(2) What are my financial assets and liabilities?
(3) How much money will I need to put aside to pay for fixed or regular periodic expenses, such as rent and mortgage payments, non seasonal utilities charges, taxes, insurance premiums, or loan payments?
(4) How much money should I keep in savings for variable expenses, such as food, entertainment and recreation, clothing and other personal goods and services, seasonal utilities charges, and transportation? (For monthly budget planning, a person may want to track a year’s expenses and divide that by twelve.)
(5) How much money should I keep in savings for unexpected costs, such as changes in the cost of living, unemployment, medical emergencies, or natural disasters?
(6) What are my long-term financial objectives? For example, how much will I need to save to pay for a trip, college tuition for myself or my children, a home, or retirement?
(7) How much, if any, money do I plan to invest, and what kinds of short- and long-term yields can I expect from my investments?
After answering these questions, the next step is to establish a budget best suited to personal needs.
Stay connected as we bring to bare other cures in our subsequent publications.<read more>
No comments:
Post a Comment