A Budget Does Not Have to Be Scary

Many people don't know how to create a budget or spending plan and don’t know where to start. The first step to getting out of debt is by creating a budget.  Creating a budget shows accountability for your spending and shows you how much you have coming in and how much you have going out.   

A budget is an itemized summary of your total monthly income after taxes minus - everything you spend money on. A budget helps you prioritize your spending and helps you manage your money no matter what your income.

A budget is only restrictive if you don't have any extra cash left over after you pay your bills. Make your budget flexible so you have "wiggle" room for unexpected expenses. If you don't have an emergency fund or savings to cover those unexpected expenses you can see right away what areas in your budget you need to reduce spending instead of using a credit card to pay for those unexpected expenses. 

The first step is to determine if there are some areas where you are spending too much money, you want to have a balanced budget of 70-20-10 and make sure you don't spend too much money in any one area of your budget.  Develop financial goals for yourself when creating your budget.  

Seventy percent of Americans live paycheck to paycheck and forty percent of Americans live above their means. This statistic shows there is a serious problem in America. 

When your budget is out of balance you use credit cards or risky financial options when causes you to go into debt and this can lead to serious financial problems such as foreclosure, bankruptcy, etc. If you know how much money you earn you should also know how much you spend. Here are 7 ways to create a budget and track spending. 

Calculate 
Subtract monthly expenses from your monthly income. If the total is negative or less than 5% of your total monthly income that is a red flag that you need to make some major adjustments to your spending.

Track

Track spending daily, weekly or monthly. The ideal method is weekly. Keep all your receipts and reconcile your bank accounts. Use an automated software tool, pen and paper or the envelope method.

Balance Spending

Spend 70% of your monthly income, save 20% of your monthly income and donate 10% of your monthly income to charity. This ensures you have a balanced budget and prevent overspending.


Create a Support System

Surround yourself with at least three people who are doing better financially and gain financial advice from them.


Evaluate Spending Habits
Don't keep making the same mistakes.


Seek Assistance
Seek professional help if necessary.

Want to Improve Your Finances Help Are Some Options to Help You

If you are experiencing financial challenges or would like to improve your finances here are three options to help you. Purchase all three or a combination of them.

Purchase a copy of my self-help financial audio CD's for less than $15 available on iTunes at https://itunes.apple.com/us/artist/harrine-freeman/id588170883?mt=11.

Purchase my best-selling self-help book for less than $15, How to Get Out of Debt: Get an "A" Credit Rating for Free on iTunes, Amazon, Kindle http://amzn.to/TKNlPl, Nook http://bit.ly/GzvFRk  and Barnes & Noble. 

Purchase my financial counseling services to help with debt, credit or budget/spending issues. For more information send an email to consulting at hefreemanenterprises dot com or call 301-280-5923.

Ask about my client referral program. Refer a client and get paid! For more information send an email to referral at hefreemanenterprises dot com or call 301-280-5923.

Your Personal Budget - The New Recovery

Many people know they should track their spending and create a budget or spending plan but don’t want to. The thought of knowing how much money you actually owe, how much money you earn and how much money you actually spend each month is terrifying. If you create a budget you will quickly see how you spend your money. You won’t be able to hide it or run from it any longer. If you know, other people may know too, yes those other people are your creditors who continue to call asking for a payment.

Many people are fearful of creating a budget and have good intentions by creating one but don’t stick to it. To stick to creating a budget you have to view a budget as a tool to help you. You are the only one who has to see your budget. Many people today live paycheck to paycheck and are in mounds of debt, in some cases because they didn’t create a budget or didn’t stick to it.

If you know how much you earn, how much money you owe and how much money you spend you can change the direction of your life. A budget helps you if you have an unexpected expense. Since 2008 many people have had unexpected expenses. In 2010 the country experienced several fires, floods and earthquakes some in areas that were not expected. If you did not have homeowner’s insurance to cover the damages that is example of unexpected expense.

Create a budget by writing down everything you spend money on each week or during each month and subtract your income. If the result is less than 10% of your monthly income you need to make some adjustments to your spending. A balanced budget consists of: 15% transportation, 15% debt, 10% savings, 35% housing and 25% other expenses.

Create an emergency fund to cover your total monthly expenses for 9-12 months. Creating a budget will help you to reduce spending and prevent you from using credit cards to pay for purchases. Use credit cards for emergencies only.

Develop financial goals when creating your budget. Financial goals provide motivation for you to work towards reaching that goal and provides a sense of accomplishment when the goal is met. Some examples of financial goals are: pay off a credit card, buy a home, start a business, take a vacation, etc. Here are 6 ways to create a budget and stick to it.

1. Take accountability. Take accountability for your actions, don’t blame others for your current situation. Learn how to be flexible and adjust to changes in your life.
2. Use pen and paper, use a software tool like Quicken or Microsoft Money or use the envelope method. Once you visually see where you are spending your money it will make it easier to reduce spending.
3. Create goals. Write down a list of at least 5 financial goals. If you cannot achieve any or can only achieve 1 or 2 of your financial goals you need to make some changes in your spending habits. Write down a list of all of your debts. Develop an action plan and beside each debt write down steps on how you can pay the debt off: reduce spending, use coupons, use money savings tips, earn extra income, etc.
4. Pay off small bills first. Pay down any small bills and debt first. Once all your small bills have been paid off start tackling the larger bills. Setup payment plans for bills you cannot pay off in full. Be sure the account balances are updated on your credit report.
5. Support network. Surround yourself with at least three people who are doing better financially and gain financial advice from them.
6. Seek professional help. Consult a financial coach, financial planner or advisor to help you create a budget or spending plan and provide recommendations to help you stay on track.

10 Financial Tips for Sexy Consumers

Being sexy can be summarized in 3 main areas: attitude, confidence and image. Attitude relates to your views on life, usually an optimistic person who can take criticism well and always remains positive. Confidence is how you feel about yourself no matter what someone else says about you or does to you. Image is the physical appearance of a person, their smile, their teeth, their hair, their walk, their laugh, their face, their body, how they dress, how they smell.

According to a study by ING 61% of the men that participated in the survey feel that women who are frugal are smart and sexy. Cash is king and having a savings account makes you more attractive and appealing. When you are in debt and have bad credit it is hard to focus on anything else and if you do, you can’t give it your all because of your financial problems especially when it comes to relationships.  Saving is smart. Investing is smarter. Good credit is smart and sexy. Saving the environment is sexy. Saving is sexy. Here are 10 financial tips for sexy consumers.

1.     Being debt free is fantastic. Save money on interest by paying more than the minimum monthly credit card or loan payment which helps pay your balance down faster so you can get out of debt. Keep debt balances at than 10% of your monthly income.

2.     Pay down debt as fast as twista rhymes. Pay ½ the balance with the 1^st paycheck then pay the remaining balance with the 2^nd paycheck or pay the minimum monthly payment when you get the bill, then each week pay as much as you can toward the balance.

3.     Act like a celebrity and go green. Help save the environment by filing your taxes electronically and get your refund in 2 weeks from the date of filing. Use tax preparation software like Turbo Tax or Tax Cut to help with the tax filing process.

4.     Stay cozy and keep money in your pocket. Do an annual check on your heating system. Insulate your attic. Automate thermostat settings and use the lowest setting. Seal drafts and cover floors to retain heat. Open blinds during the day to let heat in.

5.     Social media can be your enemy. Many debt collectors and some state taxing authorities are searching for consumers on social media networks who owe debt. If you owe debt, hide your profile from public access or just be responsible and pay your debt.

6.     Plan for the unexpected. Create an emergency savings fund to cover all of your monthly bills and expenses for 9-12 months. Create a backup plan if some financial crisis occurs and you need extra money. Have a plan A, B, C and D.

7.     Shop like the rich. Set a budget and find bargains online, use coupons or shop at holiday sales. Mix and match basic pieces with fashionable accessories such as belts, earrings, bracelets, shoes and purses. Buy knockoff pieces for extra style. Shop at discount stores and outlets for name brand pieces for less.

8.     Cut back. See what areas you can reduce spending by creating a balanced budget to stay out of debt. Thirty-five percent should go towards housing, 15% towards debt, 25% towards transportation, 10% towards savings, and 15% towards other expenses.

9.     Plan for the future. Open a retirement account and save at least 10% towards your retirement each month. You will need 60-80% of your pre-retirement salary for a minimum of 20 years to have enough money during retirement or at least $1,000,000. 

10.  Don’t be a question mark.  Know your net worth (assets - liabilities). Verify your net worth annually. Know how much you earn, how much you owe and how many assets you have. Use the figure as a baseline to increase your net worth on a yearly basis.