Whether or not there are harder times ahead, it's not a bad idea to tuck a bit of a slush fund away for when it may be required.

As jenika mentioned on another thread, the best way to face the reality of what you are spending is to lay it all out in front of yourself, then you may be able to see where you can cut down on the outgoings.

IMO, the worst thing that you can do is attempt to become a tight-ass when it's not in your nature. It's a sure fired path to discarding an anally planned budget.
If you like a $50 bottle of wine, then factor that in.

Most people just spend within the budget of what they earn without taking into account that spending their money needlessly is akin to giving themselves a pay cut + the price of tax.

Personally, I have had times where I really wanted to be investing my money, but loved ones were putting out their hand for a bit of (so-called) assistance. Of course I will help where required, but I came to feel like a bit of bunny in that I was relied upon as a cash-cow.
Instead of just saying "No, you have the means to look after yourself, my money is mine", I spent a lot of it so that I could honestly say that I don't have the money to give.
That's pretty stupid I must admit, but it's a reality that a lot of people have their own reasons which hinder them from providing for their own independence or doing what they like with their money.

If you feel that you work hard for your wages, then you should respect every outgoing dollar as an investment in yourself.

The number one on a "budget list" is usually to avoid paying 20% interest on credit cards. But first you need to attain the desire to avoid that debt.
If you can get by with continually amassing a credit card debt, then it stands to reason that you'd be 20% better off if you didn't raise the debt in the first place.
I agree that credit card debt should be a priority, but first you need to free up cash in other areas so that you can make it a weekly ritual to pay off your card.



Raise all insurance excesses to the highest limt.
Avoid bank fees where possible.
Don't pay for mobile phone, or any other services that you never use.
Don't waste your time looking at "fantastic deals" which arrive in your mailbox.
Don't bother about "fly buys" or any other such deals, go for the lowest interest rate if using your credit card will save you time.

Amadd wrote on Oct 31^st, 2010 at 1:34am:

Whether or not there are harder times ahead, it's not a bad idea to tuck a bit of a slush fund away for when it may be required. As jenika mentioned on another thread, the best way to face the reality of what you are spending is to lay it all out in front of yourself, then you may be able to see where you can cut down on the outgoings. IMO, the worst thing that you can do is attempt to become a tight-ass when it's not in your nature. It's a sure fired path to discarding an anally planned budget. If you like a $50 bottle of wine, then factor that in. Most people just spend within the budget of what they earn without taking into account that spending their money needlessly is akin to giving themselves a pay cut + the price of tax. Personally, I have had times where I really wanted to be investing my money, but loved ones were putting out their hand for a bit of (so-called) assistance. Of course I will help where required, but I came to feel like a bit of bunny in that I was relied upon as a cash-cow. Instead of just saying "No, you have the means to look after yourself, my money is mine", I spent a lot of it so that I could honestly say that I don't have the money to give. That's pretty stupid I must admit, but it's a reality that a lot of people have their own reasons which hinder them from providing for their own independence or doing what they like with their money. If you feel that you work hard for your wages, then you should respect every outgoing dollar as an investment in yourself. The number one on a "budget list" is usually to avoid paying 20% interest on credit cards. But first you need to attain the desire to avoid that debt. If you can get by with continually amassing a credit card debt, then it stands to reason that you'd be 20% better off if you didn't raise the debt in the first place. I agree that credit card debt should be a priority, but first you need to free up cash in other areas so that you can make it a weekly ritual to pay off your card. Raise all insurance excesses to the highest limt. Avoid bank fees where possible. Don't pay for mobile phone, or any other services that you never use. Don't waste your time looking at "fantastic deals" which arrive in your mailbox. Don't bother about "fly buys" or any other such deals, go for the lowest interest rate if using your credit card will save you time.

Whilst I agree with much of what you said, you may find the additional $ advantage in insurance premium savings, for increasing your policy excess, may not be as large as you may think?

In respect of credit cards, there are cards available where ZERO INTEREST is payable, IF you pay in full on the due date. This can provide up to 45-60 days credit charge free. And, under no circumstances should you draw CASH out on a Credit Card account.

I've never come across a credit card that charges you interest if you pay the balance in full by the due date.

Quote:

In respect of credit cards, there are cards available where ZERO INTEREST is payable, IF you pay in full on the due date. This can provide up to 45-60 days credit charge free. And, under no circumstances should you draw CASH out on a Credit Card account.

Quote:

I've never come across a credit card that charges you interest if you pay the balance in full by the due date.

OK, maybe it's pretty basic to avoid paying that type of interest for you guys, but lots don't.
I pay the annual fee because it saves me time and money to pay bills via credit card, but I never pay interest. A lot of people still run up their credit card bill and get themselves into a lot of financial strife in the process.
A $10K limit means that they can keep spending beyond their means as long as they can afford repayments. That's obviously financial idiocy, but they still do it.

What is becoming more common these days, is a surcharge for credit card payment.
It won't be long before we are required to foot the bill for every credit payment that we make. That's probably unavoidable for the time being.
They have us by the short and curlies there because it will still be preferable to pay bills via credit card than wasting time and money to pay in cash.

Atm, I'm looking at ways of saving money which don't hinder lifestyle. It's far easier IMO, to ease yourself into a respect for your own toil without sacrificing the pleasures that you work for.

I think that the current solar deals will work towards financial advantage.
True, there may be more efficient systems on the way, but get in now because you may not be offered a better deal in the future of this country.
Energy prices will be going up and up. Even moreso if our dollar takes a turn for the worse.
No need to change your lifestyle for that one, you'll just have some panels on your roof that won't even be noticed.




 

To secure your Future Income, your family future do proper income protection insurance today. Its Your Most Important Asset.

Income protection insurance