| ||
                         Step 3
Sorting out your paperwork will make record keeping a whole lot easier and set yourself up for success.
Step 4
Knowing where you are today can help you determine the best path towards helping you meet your financial priorities.
Step 12
Emergency savings make the difference between a financial setback and a financial disaster.
Step 21
Saving money on your groceries, is one of the fastest and easiest ways to improve your bottom line.
Step 23
Give yourself some peace of mind by making sure your family is on some firm financial footing
Step 25
To stay motivated, acknowledge the benefits you will experience as a result of your efforts.
| Step 18:
Identify and plan for periodics You may have a good idea of where the money is going on a day to day basis, but before you start working on a spending plan or budget, it is important to call attention to the number one budget breaker: periodic expenses. Periodic expenses are those that are not paid on a regular monthly basis. For example, both holiday and vehicle expenses are periodic, meaning they are not part of regular monthly expenditures. In that regard, they join the ranks of other expenses such as car registrations and vacations. Often, we know when these events will occur, but still fail to plan for them. Unfortunately, when these expenses arise, many people rely upon credit to extend their monthly incomes; using credit this way is one sign of pending financial trouble. To avoid this scenario, follow these tips when planning for periodics: • Determine what you spent last year for periodic expenses. Assume that you will spend at least this amount again this year. • Don’t hide expenses! Just because you don’t list an expense doesn’t mean you won’t have to spend money on it. Don’t forget things like back-to-school expenses, car repairs, and birthday gifts. • Remember that some items, like car insurance premiums, may occur more than once a year. • When you have a realistic idea of what you will need to spend on periodic expenses during the year, divide the total amount by 12 and save that amount each month. Designating a savings account for this purpose may help to organise this process. Here is an example of how a periodic expense can impact your monthly budget: Example: Annual auto registrations Assume your annual car registrations cost $800/year. How much should you budget each month to cover this expense (even if you don’t have to pay it monthly)? $800 / 12 = $67/month So, to be prepared for the annual $800 expense, you must put $67 each month into a savings account or into an "car registration” envelope. That way, you will not have to rely on credit when the bill comes due. Tip: I suggest once you have calculated what you need to set aside on a pay period basis to cover your bills transfer this amount on a pay period basis to a separate account. That way you will always have the funds for your bills including the annual ones  Plan for your periodic expenses.
| |
Professional Website Software supplied by Global Generation Websites www.globalgenerationwebsites.co.nz | ||
