7 Money Rules for Life® by Mary Hunt

Author:Mary Hunt
Language: eng
Format: epub
Tags: BUS050030, Finance, Personal, Consumer credit
Publisher: Baker Publishing Group

Helpful Hints and Tools

You need to create a “written” Spending Plan. There are many ways to do that. I suggest you choose the method that appeals to you.

At the very least, you’ll need paper, pencil, and a basic calculator to track your spending throughout the month. You will find a Spending Plan template on page 110 that you can customize to fit your situation perfectly. Note the side-by-side columns “Last Mo.” and “This Mo.” I like this because it allows me to see my actual spending from last month compared to what I plan to spend this coming month in that particular category.

There are countless tips, tricks, and budgeting tools that will help you create the perfect Spending Plan and tracking methods. Some are available to you to download to your computer. What you are looking for is a method and tools that click for you.

Let me caution you that if the planning and tracking methods you select are too complicated, the process will become cumbersome and you won’t stick with it. On the other hand if it is too general (most of your spending designated as “Miscellaneous”), it will be too vague to be effective.

Once you have your Spending Plan in place, you need an easy way to implement this plan. Here are some tools and ideas to get started.

Envelopes. This is a simple method of managing cash that you can team with your Spending Plan. First, get some envelopes. Then, write a spending category on each one and fund it with the amount you have allotted. Example: groceries—$250. As you buy groceries throughout the month, spend from this envelope only. Record the “What?” and “How much?” right on the envelope. The envelope creates a handy place to collect receipts as well. When the envelope is empty, no more grocery shopping until the next fill up. Do the same for things like gasoline, entertainment, fast food, and so on.

Reset your due dates. It can be a problem if all of your big bills come due about the same time, but you get paid twice a month. Here’s an easy solution: call these companies and ask them to change your due date so due dates are spread in a way that works best with how you get paid. Most companies are happy to do this.

Automate. Sending checks through the mail has become slow, dangerous, and unreliable. Sign up for your bank’s online bill payment system so you can utilize online bill pay and automatic payments.

Online bill pay. Here’s how it works: you authorize money to be transferred from your bank account to your creditor’s account. You do this all online through online access to your bank account. It’s easy, user-friendly, and safe (transactions are encrypted). You can see immediately that you made the payment, plus your online account organizes your records and receipts. It is very cool and will simplify your financial life.

Automatic payments. Most lenders, utilities, and other regular billers offer auto-bill pay without any kind of fees. In fact, some lenders and others give you a break on the interest rate if you will agree to auto pay.

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