Scrivener2's Prosperity Blog http://www.destroydebt.com/blogs/scrivener2.html Scrivener2's Prosperity Blog www.destroydebt.com Sun, 06 Jul 2008 04:40:32 GMT webmaster@destroydebt.com webmaster@destroydebt.com The Secret to Budgeting Successfully http://www.destroydebt.com/blogs/scrivener2/255-the-secret-to-budgeting-successfully.html http://www.destroydebt.com/blogs/scrivener2/255-the-secret-to-budgeting-successfully.html Sun, 06 Jul 2008 04:40:32 GMT The secret to budgeting is to first determine the programming you have around money. These are the beliefs that determine your actions. Question yourself. What is your program? Easy come easy go, drama queen or king, it’s too hard, it’s a struggle, there’s not enough, only a few can be rich, always ... Budgeting is a lot like exercise. You know it is good for you but are not convinced the effort is really worth it. You are sure there are better things you can do to manage your money than living according to a budget. Too restricting! It takes the fun out of living.
Before reading the rest of the article, stop and ask yourself why you don’t budget. This exercise helps. Ask yourself.       Why don’t I budget? Listen to the answer. Then ask ‘and’ and wait for the answer. Keep asking ‘and’ until you find the real reason.
Often the bottom line is you don’t want to see in black and white that you are living beyond your means. It was so for me. I felt I ‘sensed’ quite accurately where my money went. I didn’t want to see the true picture. I knew it wasn’t a good one.
Simply I was in denial about my situation. Coupled with my subconscious belief that money was limited and I didn’t deserve any, my attitude towards financial prosperity was everything will be all right without any effort on my part. Disastrous!
Fortunately for me my partner is a budgeting whiz and it is finally rubbing off on me.
I have learnt that once you decide to budget it is pretty straight forward and surprisingly rewarding.
What is a budget?
It is an estimate of income and expenditure for a set period of time.
Steps to Creating Your Budget
*Determine your income from all sources.

*Determine Your Expenditure – All kinds. The areas of expenditure can be determined by category.

Expenditure Categories
You need to analyse your expenditure to see which ones relate to your situation. You may need to add some.
Housing:              mortgage, board or rent
Maintenance:       home maintenance includes garden, furniture
Utilities:               water, gas, electricity, phone, internet, council rates, body corporate
Insurance:           home, contents, vehicle, medical life, income protection
Transport:           petrol, licence, car registration, maintenance, repairs, public transport, parking fees
Food:                  including dining out cost of snacks
Clothing and grooming:        clothes purchases, dry cleaning, hair care, make up,toiletries, beauty treatments
Educational or Professional:  course fees, educational debt, professional subscriptions, books 
Health and Medical:               dentist, doctor, optometrist, chemist, chiropractor
Personal:                                alcohol cigarettes
Entertainment:                        movies, video, dining out, newspapers, magazines
Hobbies and Sport:                purchase of equipment, club membership
Holidays/Travel:                    air fares accommodation, meals, sight seeing
Gifts Donations/Pocket Money: all gifts given throughout the year, money to spend
Pets:                                       food, vet, registration
Loans:                                    credit cards, store cards, personal loans
Next comes the clincher where you celebrate or commiserate.
Total Your Yearly expenditure. Subtract it from your income. Are you in credit or debit?
Freedom around money comes through managing it.

 

                                                                  

 

 

 ]]> Ten Extraordinarily Simple Ways to Save Money http://www.destroydebt.com/blogs/scrivener2/253-ten-extraordinarily-simple-ways-to-save-money.html http://www.destroydebt.com/blogs/scrivener2/253-ten-extraordinarily-simple-ways-to-save-money.html Sun, 06 Jul 2008 02:54:47 GMT My mother and grandmother were members of a generation who learned how to run a household efficiently. They were very skilled at many of the tasks they performed. A homemaker is running a small business. Financial management was high on their list of priorities. The changing world economic scene can...
I asked my friends if they had any ways they saved money. I have some very resourceful friends and they shared the following:

  • Record everyday note and coin spending. What you actually do with the notes and coins in your purse. Do it at point of sale. Don’t leave the recording till later. You’ll either forget or not be alerted to the purpose for spending. Often doing this exercise will get you to change your mind about a purchase. It will also allow you to see the ‘small’ spending that can add up to a sizable sum over the week and month. You will be able to categorize your random spending behaviour. If you are at all competitive you may will yourself to spend the smallest amount possible. Do this for at least thirty days for it takes this amount of time to form a habit.
  • At the end of each day put most of your small change in a savings tin that can be purchased from a post office or a novelty shop. Open a savings account for this and deposit the savings at the end of the month. I have a friend who deposited over $1000 in a year doing this.
  • When you have a pay rise have it placed into a savings account immediately each pay day. Don’t touch it for twelve months. At the end of twelve months put the total savings into a fixed deposit account and never touch it. You will be amazed what compound interest will do. The next year you can give yourself that pay rise. If you get a pay rise each year do the same.
  • Check with all your utility providers and see what you are paying. There is a lot of competition these days. I saved $30 a month with my phone company. That is $300 a year. Wow!
  • Keep heating costs to a minimum by keeping the temperature to 19 degrees Celsius (Fahrenheit 66.2 degrees). Wear sufficient clothing to maintain body warmth. Heating that is too high is not good for your health so there is an extra benefit in doing this.
  • Budget weekly for utility accounts. Gas, phone/mobile, power and water costs can be averaged out monthly by your provider. You can pay each month. It means never having to worry about these essential bills.
  • Make it a household rule that no food is to be thrown away. This will encourage you to shop more carefully. Buy good quality meat because there is usually no waste. Supermarkets often have scrag ends tucked out of sight in the package. Have fewer meat meals a week. Vegetarian meals can be very tasty. If any servings are left over from any meal ensure they are eaten the next day. Lots of money can be invested in the food we don’t eat and subsequently throw away.
  • Make yoghurt at home. It is an extremely nourishing food. Home made yoghurt is cheaper and purer than bought ones. You save on packaging as well.
  • Grow vegetables in your garden and in the poly boxes from the green grocer. Save seeds from previous crops and buy punnets of plants on special. Lettuces and similar greens do well in boxes. Plants for your garden can be purchased very economically at fetes and producers’ markets. A great source of cuttings is from plants that poke over the footpath. Swap cuttings with friends.
  • Buy good quality clothing at warehouses and sales. Buy clothes that mix and match. Good clothing looks better and lasts longer when cleaned carefully. Limit sending your clothes to a dry cleaner. Hand washing clothes carefully is usually more effective. Once you try a few money saving ideas the chances are you will enjoy being a successful money manager.

     

     

     
    • ]]>         Money Makes the World go Around http://www.destroydebt.com/blogs/scrivener2/249-money-makes-the-world-go-around.html http://www.destroydebt.com/blogs/scrivener2/249-money-makes-the-world-go-around.html Sun, 29 Jun 2008 07:40:25 GMT A child was playing with his friends. They needed to work out how they could exchange the various toys they had. “I think I have the answer!” said one boy. “We all get 100 points. We can then bid for the toys we want. The highest bidder gets the toy. When you run out of points you cannot have any mo... “Sounds the same as money to me,” said one astute child.
    In the ‘good’ old days people relied on barter to get the goods and services they needed. They traded. They exchanged something they had for something another had. Today we trade money for what we want. Same thing! If you have no money or are in debt you are in dire straits.
    Money makes the world go around is a popular song from the musical Cabaret and it hits the nail on the head. Everyone in most countries of the modern world wants and uses money.
    We can explain what money is in 3 ways:

    1. A form of exchange in the form of coins and bank notes

    2. Assets and resources owned by someone or something

    3. Payment or financial gain. 

     
    The word money entered the English language via the Old French word moneie and that came from the Latin word moneta. Moneta comes from the verb monere which means to warn or remind. The goddess Juno was originally called Moneta. Her temple in Ancient Rome minted money. The word mint means a place where money is coined. Not many citizens owned the minted coins.
    Generally speaking all countries have their own money (currency). All governments issue coins and paper notes to circulate in an economy. There are severe penalties for those who produce unlawful (counterfeit) money. Different currencies are traded on the foreign exchange market which is one of the most heavily traded markets in the world. 
    Let’s look at the role of money in our lives.
    The first thing to get is money is an idea. The amount of money someone has does not determine their worth as a unique human being. The amount available is limitless. However the amount of money in circulation abides by rules determined by economics. Its value is determined by authorities and can change overnight.
    Managing money is a skill everyone needs to learn. 
    The idea of money is an extraordinary one and when understood makes life fairer for all.
    How you can manage money and get out of debt.

    • Be responsible for your life. Educate yourself. There are many ways to earn money.
    • Become emotionally neutral about it. It is a means of exchange. It is a necessary part of life. You deserve to have it.
    • Realize you can live a wonderful life without getting caught in the material trap. Think before you spend.
    • Save. Pay yourself first and put some money away for a rainy day. It is amazing how saving small amounts of money quickly adds up.
    • Learn money skills. Budget.
    • Manage your money by learning about all aspects of it. Today education about money is freely available.  Money is one of the most emotionally charged concepts in the world. It won’t go away.
      Learn to use it wisely and you will be in charge of it, not it in charge of you.

       
      • ]]> It's About Attitude http://www.destroydebt.com/blogs/scrivener2/247-its-about-attitude-.html http://www.destroydebt.com/blogs/scrivener2/247-its-about-attitude-.html Sun, 29 Jun 2008 04:31:35 GMT As a child I learned that the money supply is limited and it is wrong to dwell on having it. Wasn’t the love of money the root of all evil? Rich people were selfish and greedy and God did not look kindly on them. Jesus told the rich man to sell all he had and follow him. I didn’t realise he was te...
      Wasn’t the love of money the root of all evil? Rich people were selfish and greedy and God did not look kindly on them. Jesus told the rich man to sell all he had and follow him. I didn’t realise he was telling the rich man he did not have freedom around his money. It was controlling him not the other way around.

      God also helps those who help themselves. Being a very responsible person I always had a job, a roof over my family’s head and enough to pay bills. What wealth that was! If I spent money on myself I felt guilty but I still did it! I did not track how the money was spent. I did not budget well. I had no financial goals.

      I did not invest for the future carefully enough. Deep down I believed if I was good God would provide.

      Honestly, I was what a sales trainer called me. A burning martyr!

      When I began to question my interpretation of the lessons of my childhood my fear of money disappeared.

      The financial system is how we are provided for. To use it one needs to be educated about it, responsible and above all have a sense of abundance. A sense of abundance is what enables us to be generous in all aspects of life.

      Not once did I ask the question. What is money and how does the money system work?

      The financial breakthrough for me was being around wealthy people with a sense of abundance. One of the first things I noticed was how generous the particular group I was observing are. They are generous because they can afford to be and celebrate that. They do not see anything wrong with enjoying the good life. They are not wasteful. They support charities I could not. They provide employment and mentoring to many. They enjoy life!

      Where am I now?  I meditate every day with a sense of gratitude for the abundance in my life. Each day I set goals and celebrate when I reach them.

      I have a sense of abundance and a responsible stewardship towards the money I receive.

      It is not how much money we have. It is how we bless what we have that makes us wealthy.]]>