Finance Article

Current economics have forced many into budgeting. Sadly, many people have no clue how to create a household budget. Those who do oftentimes fail to stick with their financial plan. Perhaps this is why so many people are now facing bankruptcy and foreclosure.

Budgeting can solve financial woes for those who have more month than money. Developing a realistic household budget is the key to reaching financial goals. People who do not engage in budgeting often live paycheck to paycheck and pray unexpected expenses do not occur.

Many people defy the idea of budgeting. They falsely believe living within a budget will require them to do without the things they love. While it is true you will need to reduce or eliminate impulse buying habits and stop purchasing unnecessary items, budgeting can be a fun and rewarding game that can greatly enhance your quality of life.

Creating a monthly budget plan can be accomplished in less than an hour. Generating sufficient will power to stick to the financial plan is usually the biggest challenge. Approaching budgeting with an open mind and reasonable goals will make the transition easier.

Keep in mind it took time to manifest debt and it will take time to get out of debt. However, debt elimination can be achieved through patience, persistence and a workable budget.

The first step of budgeting is to create a financial worksheet. This can be accomplished with a piece of paper and pencil or by using spreadsheet software such as Microsoft’s Excel. Some people download or purchase household budgeting software. Use whatever you have available and avoid spending money.

Start by making a list of income and expenses. Most people include living expenses such as mortgage payments or rent, utilities, insurance premiums, and credit card payments, but fail to include daily purchases such as morning coffees and fast food lunches.

Financial expert, Dave Ramsey, suggests tracking daily expenses for a minimum of 30 days. This can be accomplished by carrying a piece of paper or notebook to record every dime spent. Cell phones often include software which allows you to keep notes. You could also use a voice recorder to document expenses. Again, use the tools you already possess.

Most people are surprised to discover how much money is being wasted once they begin tracking daily expenses. Some people spend more than $1000 per year buying coffee on their way to work. That turns into $10,000 over ten years. Wouldn’t you prefer to pay off credit cards or invest in your retirement?

Once income and expenses are compiled, tally up totals for each category. If expenses are more than income, budgeting can help decide where to reduce expenditures. Review each expense to determine if it is necessary. Anything you do not absolutely need should be eliminated.

Credit cards are often the biggest budget-buster. It is a good idea to remove credit cards from your wallet unless you are traveling or need them for emergencies. Otherwise, you will be tempted to use them for items you do not require.

If credit card debt is more than $5,000, consider debt consolidation or debt settlement. These financial options can help reduce outstanding balances and lower monthly payments.

Credit counseling is a good option for people unable to develop a workable budget. Credit counselors provide financial education; help consumers develop budgeting plans; and sometimes enter into negotiations with creditors to obtain lower interest rates and eliminate penalties and late fees.

Budgeting can free you from the financial chains that bind you. Instead of viewing the task as overpowering, embrace it as your ticket to financial freedom. Budgeting provides peace of mind while helping amass funds for your retirement. Avoiding it can send you in the direction of the poor house.

If you’re like me, you’s been hearing all those ‘gold’ radio ads, haven’t you??  Did you know that gold is a PRECIOUS METAL.  And there are several ways and benefits YOU can invest in not just the beautiful yellow metal, but silver, and platinum…three of the most popular PMs (precious metals for short!! .  Give me a couple of minutes, and I share with you how I am protecting my wealth, as well as making money, thanks to PMs.

How can you invest in precious metals?  Now, you don’t HAVE to have gold bars in your house to own gold…although many folks do!  Can you imagine having a stack of gold bricks in your closet??  In my dreams!  Well, maybe one day .  I have chosen to invest in precious metals in two different ways.  Here are three easy ways to get into the PM investing arena…

1) Purchase the physical metals

You could be one of those who has a stack of gold bars in your house.  Or bags of silver coins.  Just MAKE SURE you have them safely stored.  I don’t do this because I don’t have a safe, secure way to hide them, and for my personal situation, it’s just not practical.  But many people do this.  Physical metals are called bullion.

2) Purchase PM stocks through what’s called an EFT

This is how I have nearly 30% of my retirement funds invested right now, one gold EFT and one silver EFT.  These funds allow folks like me to invest in precious metals without having to have them.  But you MUST read the prospectus of the EFT…some funds don’t actually have all the metals stored, but instead are derivative focused, etc.  Avoid them.  Quality EFT’s exist out there; you just have to do your homework before investing.

3) Invest in precious metal junior mining companies.

If I had some cash lying around, THIS is where I’d put a majority to work.  They’re called ‘junior’ because they get their financing through outside sources.  Their stock prices can almost literally shoot through the moon overnight.  Can you imagine a 300% increase in two days?!  It happens.  And if you do your due diligence, it can happen to you too.