Budget Archives - Page 3 of 8

3 Tips for Keeping Your Summer Budget Under Control

For me, summer is time of shifting financial priorities. First of all, there is a lot to do, and from summer camps for my son to camping trips to summer holiday celebrations for the whole family, the demands on our bank account are different.

It's hard to keep the summer budget under control, but it is important that you attempt to do so. After all, you don't want to be paying for this summer years from now due to debt. If you are looking to keep your summer finances in proper order, Ryan Bailey, the Executive Vice President of Deposits and Payments at TD Bank, has 3 tips to help you keep things under control:

tips for summer budgeting

1. Consider Your Travel Costs

First of all, you want to make sure that you are getting the best deal for travel. Now is the time to use loyalty rewards and credit card points to save money. You can also look for deals and discounts at your destination. Bailey also suggest that you consider how to minimize fees as you travel. If you take your debit card, Bailey recommends that you look accounts that will accommodate you. “Some banks offer accounts that reimburse out-of-network ATM fees — even internationally,” he says.

Look for ways to save money on travel, and plan ahead of time to stay within budget.

2. Find a Better Bank Account

Are you still using the account you had when you were in college, or when you first married? Over time, people's needs change, and their bank accounts should change as well. Bailey points out that it can be a big mistake to have the “wrong” account, especially as you gear up for summer. If you are saving up for a vacation, you want to keep your money in a high-yield account that offers you more bang for your savings buck. You also need an account that doesn't charge you fee. “Find a bank account that meets your current needs by doing research online and asking questions at your local bank,” Bailey suggests.

3. Assess Your Wedding Plans

The summer is a popular time to get married. However, you don't want your wedding to ruin your summer budget. Re-assess your needs, and consider ways to save money. You can do this by simplifying matters, and also by looking for deals and discounts. Consider making part of your wedding do-it-yourself.

You will also need to look at your partner financial situation. “Can merging finances help gain access to a premium account?” says Bailey. These accounts might be able to help you and your significant other better finance your wedding. Bailey also points out that you need to organize your finances and make a plan so that your shared finances don't run into problems as you both draw on accounts. You need to have a plan for that money so that you both know what is happening.

Summer can be a tricky time for your money, and it's vital that you plan ahead and look for ways to save if you want to avoid breaking the bank.

5 Tips for Reducing Financial Stress

By Miranda Marquit Leave a Comment

When you look at the stresses in your life, chances are that money is at the top of the list. After all, most Americans are struggling with all sorts of money issues, from finding themselves saddled with medical bills, to having expensive mortgages and student loans that it turns out they can't afford after all.

It's a lot to think about, especially when you consider that wages aren't keeping up with inflation — and they haven't for years.

So, what can you do? If you are experiencing financial stress, here are 5 tips that can help you reduce the stress of the situation and possibly even come out ahead:

reducing-financial-stress

1. Take Stock of the Situation

Part of the problem for many people is that they don't actually know where they stand. They don't know how much debt they have, and they haven't performed a cash flow analysis. Take a look at your income and your expenses, and make it a point to see where you are. It can be difficult to take that step (most of us would rather talk about our weight than our finances), and while it can be a little disappointing to see the situation, the reality is that once you know exactly where you stand, it's easier to see where to go next, and that can reduce your stress.

2. Get Help

You might not want to talk to others about your situation, but you can reduce your financial stress by getting help. If you don't know where to start with your finances, a professional opinion can help you on your way. Plus, sharing your difficulties can help you get a load off your chest. Look for a trustworthy financial professional who can advise you, and help you sort out your options. Getting that help can be a relief, and being able to know what to do is stress relief itself.

3. Make a Plan

Whether you get professional help making a plan, or you create a plan on your own after looking at your situation, just the act of making a plan can help you reduce financial stress. Many of us feel better when we feel as though we are in control of the situation. Having a plan adds an element of control. Create your plan (or get help creating one), make sure it's doable, and then start following it. When you follow a plan, you know the end is in sight, and that can help.

4. Focus on What's Important to You

Much of the stress that comes from debt has to do with the fact that many of us are in debt because we're trying to keep up with the neighbors. We buy what they have without thinking about whether or not it's something we want. Instead, set your own priorities and focus on that. You'll get more satisfaction from your finances and feel less stress, knowing your resource use matches your values.

5. Take Action!

Start doing something productive. Taking action can reduce stress and put you on the right track. Start a side hustle. Open a brokerage account with $50 and start investing. Put an extra $100 toward your credit card debt. Get started, and you'll feel better almost immediately. Knowing you're on the right track is a big help.

Your Grocery Bill Could Rise with Dairy Prices

By Miranda Marquit 1 Comment

One of the items that consumers have to contend with is inflation. Prices are always going up — even if wages are stagnating. Recently, one of the areas that has seen some rather dramatic inflation is dairy. According to Marketwatch, dairy prices rose 0.7 percent between January and February of 2014, and milk has risen by 10 cents a gallon since September 2013.

What does this mean for your grocery budget? It means that you could be spending more at the store. Rising dairy prices mean that you pay extra for more than just milk. Cheese, butter, cream, and other items also cost more when dairy prices rise.

If you are looking for a little inflation protection when it comes to your food budget, here are some things to consider:

grocery-bill-dairy-prices

Cut Back Your Dairy Consumption

One of the easiest ways to reduce your dairy costs is to cut back on your consumption. This might be easier said than done for some people, though. I enjoy dairy, so it's hard for me to cut back. Consider less expensive alternatives, and do your best to find ways to reduce what you are spending on dairy. If this isn't an option, though, you do have other choices.

Reduce Other Grocery Costs

Another option is to make up for it by reducing other grocery costs. According to the Marketwatch article, you probably won't pay more than $1 per item extra as a result of higher dairy costs. If this is the case, it might be possible to cut back in other areas to keep your grocery costs low. Consider cutting back on treats and junk food. You can also make an effort to find coupons and sales. This can be a way to reduce your grocery costs without cutting your dairy consumption.

Consider Local Sources for Dairy

Even though the average cost for dairy has risen in recent months, I'm not actually paying more for these products. This has a lot to do with the fact that most of my dairy is locally sourced. I get milk straight from the dairy up the road, so increased transport costs and other problems don't affect my milk costs. I also get cheese from the same dairy, and from a local cheese outlet.

While I expect prices to rise eventually on the dairy items I buy locally, the good news is that the price increases generally lag behind national trends. So, I have more time before inflation (at least on dairy products) kicks in.

Pay Attention to Inflation

It's a good idea to pay attention to inflation in other aspects of your budget as well. Prices continue to rise, and your income might not keep pace. It makes sense to track your spending, and make adjustments as necessary. You might need to earn more money (perhaps a side gig) or cut costs in order to avoid becoming a victim of inflation. Whatever you do, though, it helps to stay on top of the situation before your budget is busted. Pay attention and create a plan that works for you and your situation.

New Year Money Goal: Pick One Big Thing To Accomplish

By Miranda Marquit Leave a Comment

In the past, I've made big lists of New Year's resolutions, only to give up on most of them within a couple of months. Having several money goals to focus on is a bit much, and you can easily become overwhelmed as you try to multi-task your money goals for the coming year.

Instead of making a list of several money goals, try picking one big thing to accomplish during the year. The great thing about this approach is that you have one over-arching goal that can be broken down into manageable steps.

What's the Most Important Financial Thing You Can Accomplish This Year?

pick one goal Your first step is to consider your priorities. What's the most important thing you can do with your money this year? What do you most want to accomplish? Perhaps you want to pay down debt. Maybe you want to work toward maxing out your retirement account contributions. Maybe you want to save up for a down payment on a house.

This year, I want to boost my income investing efforts. I haven't done much with dividend stocks and other income investments, and I want to try and remedy that problem. That's my big goal for the year.

Once you figure out the most important thing your money can do this year, it's time to make a plan.

Break Your Big Goal Down

First of all, it's important that you realize that focusing on one aspect of your finances for the year is not an excuse to neglect what you're already doing with your money. If you automatically set aside $200 a month in an IRA for your retirement, don't change that just because your focus is saving up for a down payment. If you already have solid money practices in place, keep with them. Use your financial resolution as a way to take one area to the next level, not as an excuse to drop all the good things you're already doing.

Thinking of your big goal, acknowledge what you need to do in order to make it happen. What steps do you need to take to achieve your big goal. The great thing about choosing one thing to work on is that you have the entire year to work toward your accomplishment.

Let's say you want to work up to the point where you can max out your IRA. For 2014, you can contribute up to $5,500 for the year. This comes to $458.33 a month. If you already contribute $200 a month, this means you need get to the point where you're contributing another $258.33 each month. Chances are that you can't just add that much each month immediately. You need to work up to it.

Perhaps you think you can free up $58.33 immediately. Go ahead and start contributing that, and then start seeing where you can find more money. Whether it's cutting back on things you don't need, or whether it's earning more money, you can gradually make the changes in your life that lead to the point where, by the end of the year, you are contributing $458.33 each month to your IRA. It's small steps throughout the year, but you'll reach your goal — and it will be easier to max out your IRA each year going forward. If the contribution limit is raised, you'll more easily be able to add a little bit more each month, since you can break it down.

This process works with other money goals as well. Breaking it down and focusing on one objective can help you get your finances in order and make significant progress.

3 Spending Traps To Avoid This Holiday Season

By Miranda Marquit 1 Comment

This time of year, it's all about the shopping.

Shopping for food, for gifts, and for decorations.

However, it's easy to fall into spending traps when you're already predisposed toward spending money.

Before you head out, be aware of the following spending traps, and do your best to avoid them.

1. Buying Something Because It's a “Good Deal”

When you're already on the hunt for bargains, it's easy to add just one more thing to your cart because it's a “good deal.” But do you really need it — or even want it?

If it's not on your list, you are still spending money you haven't planned to spend, no matter how big of a bargain it is. It makes more sense to stop and examine the purchase before adding it to the basket.

Ask yourself why you're getting the item. If your best answer is “It's a good deal!” that's really not good enough.

2. Minimum Spending for Free Shipping

Many retailers offer free shipping if you spend a minimum amount.

The problem with this arrangement is that it can trick you into spending more than you had planned just for the free shipping. This used to happen to me in the past. My husband and I, when shopping online, would hunt for a few more items to reach the minimum required for free shipping. After a while, though, I realized that we were often spending $10 or $15 extra in order to save between $8 and $9 on shipping. All told, we were spending extra, and still coming out behind.

Instead of trying to hit a minimum, look online for shipping promo codes, or look for shops that offer reasonable prices and free shipping. If you shop at Amazon a lot, it can be worth it to pay for Amazon Prime in order to get the two-day shipping. It comes in handy during a pinch when you need to order something quickly for the holidays. If you aren't worried about items arriving within a certain time period, you can save your basket and just keep adding to it with planned purchases over a period of a week or two until you naturally reach the free shipping minimum.

3. Credit Card Rewards

One of the best ways to shop more efficiently is to use credit card rewards to earn cash back. This cash back can offset some of the cost of your holiday spending. The problem comes in when you just pull out your plastic mindlessly for everything without tracking your spending. Even worse is when you make unplanned purchases, and you justify it by saying that you're earning rewards.

Rewards cards work best when you use them in conjunction with a spending plan. Figure out what, exactly, you will spend your money on, and then stick to that list. Make sure that you have enough money to cover your purchases when the bill comes so that you don't end up paying interest on your purchases. That paid interest can make your entire holiday season more expensive.

With a little vigilance, you should have no problem making the most of your money this holiday season, and avoid falling into expensive spending traps.

Budget Out Of Control? How to Take Charge

By Miranda Marquit 5 Comments

There are times when it seems as though your money is in charge of you. At times, whether it's because you are anxious and stressed, or just because you're busy and feel you don't have time to manage your money, it's possible for your budget to get away from you. You find yourself pulling out the credit card more and more — with no real plan for paying of the balance at the end of the month.

It's hard to stay on top of your budget at times like these, and it can be tempting to not even try. After all, once you become overwhelmed, it's hard to kick the spending habit and bring your budget back in line. However, if you want to stay financially solvent, you do need to take charge of your finances. Alicia H. Clark, a Licensed Clinical Psychologist, has some tips for those who are ready to take charge of their money:

Break it Down

“The first step in getting control of your money is to recognize the anxiety money is causing you, and use the energy of that anxiety to fuel productive action rather than avoidance,” Clark says. “Break your tasks into parts so small that you barely notice that you are taking a first step.”

She suggests that a good first step is opening up your account online and looking at the numbers. Your first step should be simple and small. “Whatever the first step is, do it, and breathe deeply, recognizing that you are taking action,” Clark continues. “Know that facing the truth of your situation is the first step to changing it for the better.”

All of your actions after that first step can also be broken down into small tasks that are manageable. Looking at the whole situation can lead to a feeling of crushing defeat. Instead, make the whole situation much easier to handle by keeping your steps small, whether you are tracking your spending, looking for ways to earn more money, or finding small expenses to cut from your budget. “Look for ways you can improve your finances,” Clark says. “What are five ways you can decrease your spending? Are there ways you can grow your income?”

Change Your View of Money

Too often, we think of money as the end, rather than the means to an end. We work for more money, or try to cut spending to have more money, without really think about what it means, beyond the fact that more money is needed. Instead, think of money as a resource.

“Recognize that money is simply a resource that you have to manage much like your time, your energy, and your attention,” Clark says. “At its best, money is a reflection of your choices and your financial situation.” Stop thinking of money as the end itself, and start thinking about what you want from your life — and how money is the tool to help you achieve. Manage your money as a resource, and it becomes easier to take charge of your situation and work toward the things that you want out of life.

What do you think? How do you take charge of your finances?

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