Motivate Yourself to Save Money

By Dave Stack
(Finance/Budgeting)

Saving money is quite a challenge. Often, people save money after getting the expenses out of the way. Some people advise though that money for expenses should be taken out of the budget after you have set aside a certain amount for savings. This can be rather hard to do if you have already fallen into the pattern of spending first and then saving. You have to motivate yourself to save money if you want to see some real savings.

How do you do it?
Start with a goal. What are you saving for? Write down what you want the money for. Is it for a new computer? Do you really want a new TV or game console? Are you saving for that dream vacation? Would you like to set aside money for college? Are you setting up a fund for the kids' school expenses? Are you saving up for retirement?

Write down whatever your goal is. Always keep this in sight to remind you of what you want. Saving is easier if you can see the end in sight. Make sure that the amount you are saving for is feasible. Don't get frustrated by setting a goal that is impossibly high. Start small if you have to so you can get used to the idea of saving. Move on to the bigger things once you've adjusted to a lifestyle of saving. Getting frustrated early on can put a dent into your motivation.

Okay, you now know how much money you would like to save. The next step is to think of the steps you will take to reach that goal. You know what that means, right? Yes, time to break out the calculator and create a budget.

Assess your expenses. Which of these are absolutely necessary? Stick to the basics. Which of your expenses can you do without? If you want to see how much money is really going out of your pocket, stop using your credit card. Write down each expense you make. Be meticulous about record keeping. Add them up at the end of the week. Surprised? Don't be. Many expenses don't seem to be too much when taken individually. When they start adding up though, they can amount to a significant sum.

Discipline yourself and cut back. Eat at home more instead of dining out. Cook meals at home. You can save a lot of money by cutting back on your nights out. Use coupons when doing your grocery. Every dollar that you save goes right into your savings account. The sooner you meet your goal, the sooner you enjoy the benefits.

Patience is key. Good things come to those who wait and discipline their selves in the meantime. Keep your eyes on the goal. Do not let little inconveniences hamper you from your goal. If you get easily distracted by shiny things like department store sales, stay away. Do not torture yourself needlessly. Do not put yourself into a position where temptation may become too strong to resist. Take a deep breath and remind yourself you have a higher goal in mind.

Define your needs and wants. Sure, clothing is a basic need but do you really need two new jackets? And shoes to match? Know what the difference between a need and a want is. Your wants will come in the way of your savings goal. Always keep your goal visible so as not to lose sight of ultimate prize.

Victory is always sweeter if you have worked hard for it. When you reach your goal, nothing will taste as sweet, knowing that you have sacrificed for the prize.

Enjoy the sensation and the reward. And ramp up the next challenge. You know you can do it. Now, step up the ante.

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Is a Personal Budget Software Program Really Necessary? How Can it Help Me?

By Gust Lenglet
(Finance/Budgeting)

Does this scenario sound familiar? It's the first of the month and you have just received your paycheck. You remember that pair of shoes you saw a couple of weeks ago that is a perfect complement to the outfit you're buying today, so you buy them as well. Some friends call and you decide that it would be nice to treat them to a few dinners, so you pick up the tab. All of a sudden, the middle of the month arrives and you have unpaid bills, and no money to

pay them. This doesn't sound possible so you begin to add up all of the expenses and it suddenly hits you. The truth is individually the expenses might not seem like much; however, put them all together and they make up a sizable chunk of your income. Sound familiar? Well unfortunately, it's a common story for many except those with exceptional restraint and those using good personal budget software.

This is a typical example and shows us why it is so important to budget our money. The most common causes of financial problems is buying things that you can't afford or not having a handle on where you actually spend your money. Using a budgeting software program can help you to avoid this well known danger. These applications, if used properly, will help you keep track of your income and expenses so that you can see for yourself and have a better understanding of how and where your money is spent. While some spreadsheet programs for this purpose can be quite tedious and complex, a budgeting software program is much more intuitive and offers many more bells and whistles. Without a doubt, the "zero-sum" method is the best budgeting program that I have seen. This principle essentially illustrates that each dollar has a specific designated purpose such as your regular monthly expenses, and especially debt reduction. In this way there is no idle cash lying around, plus you can also budget for future purchases. The temptation to spend any excess funds is gone.

While many questions are raised regarding the use of personal budget software, you need to know that many individuals have benefitted from these programs. A current survey of users of a well known financial program discovered that on an average of one month of using the software, they were able to reduce their debt by approximately $500. Try and gauge the impact this could have over your finances if you could reduce your debt by $500 or more each and every month. If paying debt is not one of your worries, then estimate how quickly you will be able to purchase the luxury car you want or that dream vacation you have been saving for. It really doesn't matter what situation your finances are in, you simply can't afford to be without good personal budget software!

I know how difficult it can be to start a budget, but I can tell you after many years of counseling individuals and married couples, that budgeting is extremely important for financial well being as well as a happy marriage. In fact, it's wise to begin teaching your children at an early age the importance of creating a budget. You might be surprised what they will know about it, and how it will benefit them later in life. There are a number of personal budget software programs available, some fairly basic, and some just too complex. We highly recommend those that use the "zero-sum" method where every dollar is allocated, and you budget the current month expenses on the income received the previous month. A very different approach that really works! So please, don't delay any longer. Get the personal budget software that is best for you now and stop living paycheck to paycheck.

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The Important Role Personal Finance Budgeting Has in Keeping Your Budget on the Safer Side

By Micheal Blue
(finance/budgeting)

(BudgetiNg)When providing any sort of (BudgetiNg)help or advice as to how to work towards achieving a decent and stable financial future,(BudgetiNg) the most crucial asset I will always advise clients to try and cultivate is self-control and discipline in regards to their money. Financial budget planning is an excellent way of working towards this goal as it forces the person to be directly responsible for their work, consider how much they are spending on something, and will actively eliminate the emotional aspect of the equation.

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