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Fri, 18th June, 2010 - Posted by admin - 0 Comment

Top 5 Online Budgeting Tools

Posted by admin

Top Online Budgeting Tools

It’s a vast financial jungle in these early days of the 21st Century and it’s never been more important to budget.

Money is hard to come by and even harder to keep. However the internet has a wealth of choice for easy ways to set up and maintain a personal budget. Here are the top five online budgeting tools.

You get two for the price of one with SmartyPig. Not only is this software a great budgeting tool but it also throws in a high yield, FDIC-insured savings account. You can also enlist friends and family to help you save for your specific financial goal while protecting your personal information. It’s also free to sign up and use. Plus, once you’ve attained your financial goal, there are options as to what to do with the money. Transferring it to a store gift card can add up to an additional 12% to the amount being allocated.

4. Geezeo.com

Something of a bare bones online budgeting option, Geezeo provides the usual tools to help you manage your finances but the real treat here is the community aspect of the site. You set your financial goals and form groups with other site users who can encourage or advise you as you go. There is also expert advice available as well. Checking, credit and savings accounts can all be maintained here though the group aspect is the real selling point. If you’re looking for a more interactive way of handling your finances then you might want to give Geezeo a try.

3. Mint.com

Another free budgeting option, Mint allows you to see all your credit card and banking transactions side by side, giving you a clearer picture of exactly how much you are spending and where. Safe and reliable, you can easily keep an eye on your money and the handy cash vs. debit ratio as you can download your purchases to your Mint account. To use Mint, you will have to input some of your banking security codes, which is a genuine concern for most. However they use the same security company as Bank of America so you can breathe easier.

2. BudgetPulse.com

Simple, easy to use, comprehensive, and free! Now what budgeter doesn’t like that last one? This software is a great way to monitor one’s finances. You can create personal budgets quickly and the software does not link to bank account data or ask you for personal account numbers or passwords. Quick charts and graphs illustrate your expenditures in an easy to follow manner. Safe, secure… did I mention it was free?

1. Mvelopes Personal

This award-winning software is free to try but does cost a bit to use. However it boasts revolutionary and innovative financial software, which allows you to easily set up a comprehensive budget that helps you to live within your income. Again, ease of use and simple graphics show you where you are spending your money. Things are further simplified through the use of budgeting envelopes into which you transfer funds earmarked for specific expenditures.

About the author:

This was article was written by Andrew Salmon. He contributes blog posts about budgeting and the IVA debt solution for a number of websites.

Popularity: 11% [?]

Categories : Budgeting

Thu, 10th September, 2009 - Posted by Nash - 2 Comment

Budgeting For Your Financial Goal: That Illusive “Other” Category

Posted by Nash

In this post, Adam from RabbitFunds.com talks on his experience in budgetting for his financial goal.

So my wife and I were walking through the mall the other day when she noticed a sale at Bath & Body Works for hand soap. I asked her how our supply of hand soap and lotion was doing and she remarked that it was low. I immediately thought of our budget and asked myself if we had room in our budget. I then realized that we had a recurring problem, “Should purchases at Bath & Body Works go in the Grocery budget, the Personal Care budget, or some other more appropriate budget?”

Now, I imagine that you may be thinking that I am splitting hairs, and I probably am. But this brief conversation in my head gave way to a larger problem. We have purchases that don’t occur monthly that I don’t budget for since our budget is monthly. Some examples include my wife’s trip to the salon every 4 months (approx. $100), oil changes every 3000 miles (approx. $20), and clothes at the beginning of the school year (I have a monthly Clothing budget, but this exceeds it).

Since I am not budgeting for these infrequent purchases, we use savings to pay for them.

And maybe that’s what your savings are for and maybe not. My savings are intended for specific goals (retirement, vacations, large purchases, etc) and for emergencies. Don’t tell my wife, but her hair is not an emergency. So I hate using savings to pay for the trip to the salon.

I brought this issue up to my wife while we strolled through the mall. We currently don’t have an Other category, in part because I find it too non-descript for analysis purposes. However, “other” happens. Meaning, we need an Other budget category to cover purchases that occur on a less than monthly basis. If it happens monthly, then it should have a dedicated category.

How much should my “Other” budget category be?

Well, that’s a harder question to answer. We use Microsoft Money to budget so I can run a couple of reports and see how much I typically spend on Other. Though from month to month, the amount dedicated to this category is probably a moving target. So here is what I suggest. Make your best guess and start there. So for example, let’s say you estimate that on any given month, you have $75 in non-monthly, non-emergency purchases. After two or three months, evaluate what you actually spent. You should specifically look at two things. First, did you spend more or less than the $75. Second, did you need to spend the money. You may find that your Other spending isn’t really necessary.

So this category is my dump for miscellaneous purchases?

No. Be careful with this category. The purpose of a budget is to understand how much you spend and where you spend that money so you can minimize expenditures and maximize savings/investments. Be sure that you don’t use an Other category as a way to avoid facing the facts. If something can and should be tracked, then do so.

So what is in your budget’s Other category?

About the Author

Adam Williams is the founder and author for RabbitFunds.com, a blog with the purpose to help the average family better understand financial issues, financial planning techniques, and ultimately a delineated path to creating a personalized, comprehensive financial plan. Adam received a degree in Financial Planning from the Marriott School of Management, ranked 5th in the nation for undergraduate business programs by Business Week.

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Categories : Budgeting, Debt Management, Personal finance

Sun, 26th July, 2009 - Posted by Nash - 21 Comment

10 Powerful Steps For A Financially Sound Retirement

Posted by Nash

In this post, Jonathan Leane of Debt Loans has listed out 10 powerful ways for us to be financially sound when we retire.

Everyone wants to retire early and rich. Perhaps your dream is to travel the states in an RV or maybe you want to be able to retire in the country with a porch swing, a pond, and an art studio. Whatever your retirement dream is, here are ten tips to make sure that your retirement is as comfortable as possible.

Step 1 – Save, save & save!

Remember this piece of advice: If you want to be rich, it isn’t about how much you make, it’s about how much you keep. Think of that sentence each time you have a “want” that isn’t in your budget. Keeping up with the Jones will not get you where you want to be when you retire. Propane space heaters and portable space heaters, for example, will save you money on your heating bills.

Step 2 – Budget to include savings for retirement

There really is no better system for keeping a handle on how much you have and how much you save. Make sure your income minus your expenses every month is equal to zero. Work with your spouse or partner on this together. Once you make a budget, stick to it. That means no impulse buying of seasonal placemats on a run to Target for toothpaste (nor should you purchase that new home theater system you see on sale in the store while you’re picking up diapers). Plan every cent that will be spent that month and stick to the plan. Saving just $150 a month at a 10% annual rate of return for 40 years will give you just under $900,000. That’s the same as saving five-dollars a day.

Step 3 – Cut down on the little expenses

Need help cutting down on expenses? David Bach, author of Smart Couples Finish Rich, suggests watching your “Latte Factor.” This is the amount per year that one spends on unnecessary purchases such as a Latte. Track spending for one week. Take a look at the smallest expenses – the candy bar from the vending machine, the latte, that muffin you picked up on your break from work. You can plug these figures into the Latte Factor calculator on the Finish Rich website to see how much money you could make if you avoid these little temptations every day.

Step 4 – Get out of debt as soon as you can

Nothing eats a hole in your dreams like owing money to a high interest credit card company or treading water each month just to stay afloat. Dave Ramsey, in his book Total Money Makeover, advises those working to get out of debt to avoid debt consolidation loans. Rather than consolidate loans, he advises that first debtors set aside a $1,000 emergency fund while continuing to make minimum payments on credit cards. Once you’ve established this fund, then it’s time to begin to pay off cards from the lowest to highest balance. Only take out a debt loan if you are in desperate need and you trust yourself not to dig a deeper hole.

Step 5 – Start saving your money for a rainy day.

Remember that emergency fund you started before you began to get out of debt? Build on it. Make sure you have enough liquid assets to live for 6-12 months if either yourself or your spouse became unemployed, injured, or some other emergency confronted you. This way, you will not go back into debt when faced with the unexpected.

Step 6 – Use insurance to protect your finances

There is no better way to safeguard your finances than to purchase insurance. At a bare minimum you should have health insurance, auto insurance, disability insurance (especially if you are self employed) and if you have dependents, life insurance.

Step 7 – Pay off your mortgage loan as soon as you can

The best way to do this is to refinance at a lower interest rate for a 15-year fixed mortgage. In addition, once you knock out your debt, you can make double payments on your home loan. By paying off your mortgage sooner, you can save yourself thousands upon thousands of dollars of interest – and put that money towards your retirement.

Step 8 – Max out your retirement savings plan

If your company offers a 401(K) plan, take advantage of it. This plan allows you to save for your retirement by depositing savings and deferring income taxes. Often, your company will match the amount you set aside in your 401(K) plan. Let this money grow. If your company does not offer a 401(K) plan, or if you are self-employed, open an IRA account and put money away in there. There are two types of IRA accounts – Traditional IRAs and Roth IRAs. A Traditional IRA offers various tax advantages for putting money away for your retirement. Some contributions may be tax deductable and often your contributions will not be taxed until they are distributed. A Roth IRA has similar rules but if you qualify, your contributions will be tax-free. The sooner you start saving, the more compound interest you will receive over the time of the account.

Step 9 – Prioritize your money for your future and retirement

When you get a raise, instead of purchasing a bigger house or more stuff, sock the additional amount away in savings. Imagine your raise is an additional $400 a month. If you are out of debt and invest this amount plus your latte factor of $150 a month consistently with a 10% annual return, after 30 years you would have 1.2 million dollars and after 40 years you would have3.2 million dollars. Do you still want that big screen TV or that new car?

Step 10 – Seek out a financial advisor to optimize your financial plans for retirement

A good financial advisor can help you plan for future goals and retirement. Make sure you know what your goals are between now and retirement (Do you have children to send to college? Do you want to go back to school yourself?) and be sure you are honest with the advisor about your current situation.

By following these ten tips, you can be well on your way to enjoying your retirement dreams – no matter what those dreams involve.

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Categories : Personal finance, Retirement

Tue, 12th May, 2009 - Posted by Nash - 24 Comment

5 steps to set financial goals that you can achieve

Posted by Nash

Goals determine what you’re going to be

Julius Erving

What is a financial goal?

It’s just something that you wanna get in the future and for you to have it, you have to do something about it today.

For example, you wanna get that red, flashing beaming car? Or you wanna go to a romantic holiday in Paris with your loved one? Or, the all-time popular reason – to save money for your children’s education or to set enough money for your retirement. Whatever you want that involves having some money for you to use in the future – that’s a financial goal.

Yup. Got it. Great!

So, what do you need to do now?

No.1. Define your financial goals

This is a no-brainer, but I still have to state it in. You can only know what exactlyyou need to do only if you sit down, think about it and put it down on a paper (or your computer, if you’re the techie type). Don’t need to write a research report about it. Just a simple what-you-want would do.

Try to make it clear and put some numbers with it – I want to have 5,000 dollars by end of this year coz I’m really dying to go to Paris – is much better than – I want some money coz I wanna go to a holiday at the end of the year. The clearer your goals are, the more motivated you’ll be at achieving it.

No. 2. Be realistic in defining your financial aim

Yup. This is quite important. If you set your financial objective is to be a millionaire in one-year’s time, but looking into your income now, it may take you 20 years to achieve it, then you’ll know that it’s unrealistic. Sure, you can hit a lottery, but that’s wishful thinking and not planning.

The bad thing about setting a target too high is that you’ll have that nagging feeling in you that tells you it’s impossible and pretty soon that feeling will demotivate you. And when you don’t get it – you’ll get I-told-you-so straight to the face. That’ll be the last time that you set up a financial goal.

Instead, try something that you feel that you have a chance to achieve. Try not to make it too easy, so that you’re out of your comfort zone and is doing more than usual.

3. How long will you take to complete your financial goal?

Some financial targets are short. For example, you wanna keep enough money so that you can buy a new shirt at the end of the month. Some are long – you wanna keep some money from now until you retire so that you can have enough money for your retirement.

Whatever your goal is, you need to figure out how long you will take and to have a deadline for it. Now this is super-important. If you don’t put a deadline – you’ll just drift away and chances are you won’t achieve what you want.

Setting Financial Goals

Courtesy of Blomberg: Your Money

4. Get the financial numbers out

This is the hard part. For example - how much do you need to save every month so that you’ll get five thousand dollars by the end of the month. Or let’s make it harder (!!) – how much you need to save every month so that when you retire, you can spend a thousand dollars every month for the rest of your life.

5. Be prepared to make adjustments to your financial goal

Well, we don’t know the future. For now, saving one thousand every month may be enough to set for your retirement, but in the future, who knows, you might need more than that. Or, Paris isn’t a place you wanna go anymore (coz you just broke up and you’re not having that romantic feeling anymore) but instead you just wanna let loose and go crazy in Las Vegas. Whatever it is, just make the changes as you go along.

To sum it up, financial goals are something that you can set and by following the simple steps above, it can definitely be achieved by you!

Collection of Articles (Carnivals) on personal finance:

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