Whenever someone is working on a financial goal, one of the topics that comes up is working with or within a budget. The fact is that there are three distinct types of budgets, each with their own structure and approach. This subject is definitely not a “one size fits all” topic. Understanding the different types of budgets will help you track the right information for the task you are working on.
Most of the time when someone is talking about their budget, they are referring to an operational budget. An operational budget is one that tracks ongoing financial activity. This the day-to-day budget of a business or a family.
An operational budget tracks both income and expenses. The purpose of this document is two-fold. First, by tracking all financial movement, or “cash flow”, a person can get a much clearer picture of the financial situation. Hopefully, this picture will allow a person to make any desired changes in an efficient manner. Second, the focus of this budget is on the difference between income and expenses. In a business, this is the profit; for a
There was a time when people bartered for almost everything. Nothing went at full price and negotiating was the norm. Couponing, in a sense, is a return to the days when buyers made their best deal with sellers, saving hard-earned cash in the bargain.
I’m not an extreme couponer, but I do save money every time I shop at my two primary grocery stores. Plus, I save money via coupons at other retailers, and it’s like putting cash into my pocket.
The most practical way to start couponing is to have a system that makes sense for you, is a process you’ll regularly follow, and doesn’t overburden an already full schedule. The following are tips that will help you develop a money-saving process using coupons that fit into your normal weekly routine.
Start by setting aside the same day weekly to clip, sort and file coupons. Thinking through the process and journaling transactions will help set up a routine. Successful use of money is always set upon routine. Using a journal system with couponing can add personal depth to the process. You can plan menus, record
If you have recently graduated from high school or college and are entering the workforce, establishing credit and developing a sensible household budget is the foundation to your future success. Creating and sticking to a budget based on your current income with a commitment to spend within your means is the first step to creating long-term financial success. The following suggestions will help you develop your budget.
• Monthly Income – Depending if you are a salaried employee, paid hourly, or receive tips and commission income you will need to determine your average monthly income. If you receive 1099, tip, or commission income, you should gather your most recent pay stubs and last year’s tax return to calculate what you typically earn on average each month after taxes. You should also consider: child support, alimony, disability, or cash income that you receive as part of your monthly income. Once you’ve added up all the sources of your typical monthly income you now know what your expenses can be.
• Monthly Expenses – Look at your checkbook and your most recent bank statements to determine what
innovative Capitalization: Pondering Policy Implications of the Public Private Partnership Model
One of the most innovative funding strategies is the Public-Private Partnership (P3) model. The Public-Private Partnership is quickly becoming the future for most infrastructure projects. The Public-Private Partnership is a contractual arrangement between a public agency (federal, state or local) and a private sector entity. Through the derivative agreement, the skills and assets of each sector (public and private) are shared in delivering goods, services or facilities for the use of the general public efficiently and effectively. In addition to the sharing of resources, each party shares in the risks and rewards potential in the delivery of the good, service or facility. Given current government fiscal and budget crises, viable funding options are being evaluated for building and renovating infrastructures using small amounts of money from governments or non-governmental organizations. Often, the Public-Private Partnership can be the solution to financing problems, completion of jobs and investing in large projects without sacrificing the government limited financial resources. There is significant and growing empirical evidence that Public-Private Partnership projects come in substantially lower than their
You can do a lot more with your finances if you learn how to properly budget and save. You could go from sitting at the house watching television during your paid time off of work to taking a nice vacation with the spouse. You can do much more with your life if you learn how to handle your money like a pro. I’m going to give you 3 tips that if done correctly and steadily will be very effective. Some of these tips may seem obvious; however, too many people fail to do them!
1. Learn To Budget – As painful as it may be this all comes down to the old fashion way of grabbing a pen and a piece of paper and doing some math. Figure out your average monthly income and write that number down. Then, subtract all your bills. After that, take 5% or 10% of the remainder and add it into your savings account. Finally, you have to reward yourself. So hopefully you have something like $300 left, so take $100 and use that for recreation and put the
After working so hard for so many years, many retirees expect to have a very comfortable life after retirement. Most employees who are pensionable feel at ease knowing that they at least have the pension to keep them comfortable after they retire. However, this has not been the case for many retirees; most have retired only to find that they have very little to live on making life quite uncomfortable. Pensions for state public employee continue to face serious issues with funding and this has left many retirees frustrated because the features and benefits expected are no longer guaranteed.
In reality, if you want to have a comfortable life after retirement and you wish to be independent rather that dependent on your children, it would be best that you start preparing for that phase of life early enough. It helps to have savings and investments to back up your pension and any social security benefits you are entitled to. You can only say that you are ready for retirement when you have much more than pension to look up to for that comfortable living.
Defaulting On Loan
The fact that you are out of college with no job, tired and broke. You may have enough reasons to default on your loan. That explains why 26% of American have defaulted on their loan before the age 30. This research comes from Credit Karma and Qualtrics. But the fact that you have no job doesn’t mean you should just sit and whine. An easy way can be to call your card company and negotiate on your loan. Your company will be more willing to sort you out.
Failure To Build A Good Credit Score
The effect of a poor credit rating can’t be ignored. Your credit card history carries everything. Your credit card score will determine if you can not only buy a home, but maintain it. If you will get a car insurance. If you will even get a job in certain states. A good credit card history is the key to your financial life. It is what opens the doors of possibilities for you. But the moment you abuse it, it will have no mercy on your life. So, guard
In the modern world, the pulls and pressures are more for spending whatever one earns. The consumerism and materialism are the main culprits behind this pathetic situation. Even if an individual attempts to rein in the expenditure within the limit of his/her income, the lifestyle of the people in the surroundings would tempt and induce towards wasteful and extravagant expenses.
The aspirations and inspirations are the two vital factors that influence the human lives. The different combinations of these two elements produce the following three lifestyles.
1. Spend less and Save more – Frugal type where money is given importance.
2. Spend more without concern for the future – an Easy-going type that ignores the future, and
3. Spend and Save diligently – the Ideal type caring for the present and future.
The third lifestyle actually means ‘ Live happily within Means.’ This is applicable for the individual and the government as well. The steps involved in this practical concept are narrated here below.
Aim high. Pursue with a systematic and pragmatic approach. Ambition backed by the right attitude coupled with sincere efforts is desirable, but greed definitely hurts.
Your car. You need one, we all need one. This necessity means that we are going to spend our hard earned cash on these things. So which ways are there to keep our spending in check in our cars?
Let’s look at a few ways to keep the miles ticking over, and the pounds firmly in your pockets.
This is the enemy of the pockets of all young drivers, and sometimes older drivers can be stung too. So how can you keep this enemy at the gates? This is a simple fix, use a comparison engine. It’s been said again and again, but it is very common for people to just stick with their insurer. Loyalty will get your wallet nowhere in this game! Make sure you look around, and always keep these pesky insurers on their toes!
2) Driving speed
Keeping your speed low on the motorway can save you hundreds of pounds, per year. If you use the motorway frequently, we are talking in the thousands. Remember, this is all tax free money that you could be using for something else. So remember, the
Sometimes your salary isn’t paying quite enough to cover all you wish it could. Maybe you got promoted to an exempt position that looks good on your resume, but now that lucrative overtime bonus is gone. You could have been offered benefits that you truly need (medical insurance, for instance), and on paper it all looks good, but in your wallet there’s not enough cash.
This is where that “B” word – Budget – comes in to help.
All the experts start with an honest assessment of where your money is currently going. If you don’t know where your money is currently going, how can you control its flow? Write down all the ugly reality on paper so you can look it in the face and deal with it.
The problem isn’t automatically solved by a higher salary; it is solved by controlling the way you spend what you earn.
You can see this in the sad tale of many lottery winners whose huge chunks of money are gone in a few years or the way even high earners go bankrupt. This means that you have hope
There are a lot of misconceptions about what it is to live below your means. It’s because people often focus on the cut backs and the lifestyle change versus the huge advantages. In this high-pressure, credit-based, keeping up with the Joneses, gotta-have-it-all-right-now society, living below your means isn’t exactly fun but it is absolutely doable. Below are a few tips that can help you get started on setting some new goals to help pull you out of debt, pay bills on time and still have some change left over to live a comfortable affordable lifestyle.
• Challenge Reoccurring Expenses – Take the time to review your overall income, current bills and monthly statements. See where you might benefit from a renegotiation or an assessment of alternate options. For instance, you may be dead set on keeping your cable, but you can still call your cable company (and its competitors) to negotiate a better rate. Not to mention, streaming services like Netflix and Hulu have become a lot more popular these days and are much cheaper to have than cable. Even mundane expenses like your
Are you living paycheck to paycheck? If you’re like a lot of people, your cash barely lasts until the next payday. While a windfall would be nice, it’s not likely. With little effort you can tweak your spending habits and maybe have a few dollars left over at the end of the week. Save a little here and you can spend a little there.
There are many ways to cut spending, save money and make a little extra cash. While each method may bring in a seemingly insignificant amount of change, together they add up to big savings. At the end of the week, you’ve managed to hold onto a good amount of your hard-earned dough.
Here are 8 ways to turn a pinch of technology into some great money-making opportunities:
1. InvisibleHand is a browser add-on. When you shop online it lets you know if there’s something less expensive out there than the item you’re about to buy. It works with Google so that when you Google something, it automatically checks for the lowest prices of that item and alerts you. There prices are real-time,
How do firms choose their cost structure? What is the nature and function of scales of operation? What are sources of functional and dysfunctional scales of operation? These policy questions relate to the optimal overhead of a business enterprise-the appropriate mix of expenditures that maximizes the return on investment and shareholders’ wealth while minimizing the cost of operations, simultaneously.
Clearly, effective economies of scale (MES-Minimum efficiency scale) are correlated with optimal cost structure and critical to sound business strategies designed to maximize the wealth producing capacity of the enterprise. In these series on effective expenditure management, we will focus on the pertinent strategic overhead questions and offer some operational guidance. The overriding purpose of this review is to highlight some basic cost theory, strategic expenditures relationships, and industry best practices. For specific financial management strategies please consult a competent professional.
As we have already established, the optimal cost structure and appropriate scale of operation for each firm differs markedly based on overall industry dynamic, market structure-degree of competition, height of entry/exit barriers, market contestability, stage of industry life cycle, and its market competitive position. Indeed,
Having a steady income is fantastic, especially after university. As it turns out, after receiving anything several times we begin to ignore the teeny-tiny changes. We go on autopilot and enjoy champagne with our guests until we feel the turbulence and have to sprint back into the cockpit to take control, and do it again.
I used to reach a point where I’d look at my accounts and say, “What do I have to do?” and “How long until my next paycheck?”
Historically, budgeting has worked in every case by giving every dollar a name before we spend it, so you, and the cash know where the heck it is going.
Then again, historically, we’ve never been accessible 24/7 to everyone we know, thanks to the Internet and almost feel like time has dwindled, or we may have dawdled.
As individuals, we have three general directions for our money: Needs, Wants, and Saves.
These are true for every dollar you’ve earned, or found. However, these three categories look different for everyone.
With a simple system, you can teach yourself to hog-tie your spending, and find room for fun and
How do firms choose their pricing strategies? Do higher prices automatically result in higher profits? How do firms that opt for premium pricing compare to firms that opt for volume? Do price increases always result in higher total revenues? These strategic policy questions relate to the optimal price points of a business enterprise-the appropriate mix of value propositions that maximizes net income and thus the return on investment and shareholders’ wealth while minimizing the cost of operations, simultaneously.
There are divergent pricing objectives and many factors influence pricing strategies. For those familiar with the relevant academic literature the critical factors are well known and supported by contemporary research. The primary goals of effective pricing strategies and core elements of effective pricing strategies are equally well established. However, some industry watchers and practitioners continue to identify profit maximization as the primary goal of business enterprises. As we have advised in previous review and guidance, this focus on profit maximization is a bit misguided.
While profit maximization is a legitimate strategic business goal, for several reasons the primary goal of a business is survival at least in the short run. There is gathering empirical evidence
How to Save your Money?
1. Turn off the television.
The Greatest way to save money is to drastically cut down on the amount of television you watch. There are a lot of financial benefits to this: less exposure to spending-inducing ads, a lower electric bill (and perhaps a lower cable bill if you downgrade your subscription), more time to focus on other things in life, such as a side business and so on.
Want to take things a step further? Consider cutting the cord to cable TV altogether.
2. Enough with the collection and time to sell
Many years ago people thought their collection would bring them riches. Beanie Babies were a big fad at one time, as were Longaberger baskets. Now you can find those items on resale sites like Craigslist and at garage sales for a fraction of their initial cost, leaving many people who sunk thousands of dollars into their “investments” wondering what happened.
To avoid situations like this, never collect items of questionable value. And if you want to recoup some of the money you’ve already spent on collectible items, you can start selling them now and use those funds for any
These ideas I have learnt through personal experience, and surfing the internet:
- Instead of buying brand new computers and gadgets such as cables, mobiles and tablets, you can buy them refurbished. No, not badly damaged, but showroom pieces such as a computer with a small scratch or chip on the corner of the casing, or buy from a stock clearance sale, or even a used mobile that is still up to date. You can buy cables from the Sunday markets for mobiles and computers, and save there too.
- Don’t purchase appliances too cheap, such as microwaves, as they tend to need a lot of repairs and get replaced more regularly than good quality ones. Find a brand that is reputed to be enduring, but is also good on the pocket. One such example is a Dyson Hoover which if looked after can last five times longer or more than a cheap Hoover that fails in six months to function. It is worth paying that bit more on buying the item, than forking out for expensive repairs and replacements such as washing machine drums and electrics. Shop around various stores for price differences on the
There was a candy store on my walk back home, and my weakness was a local, oversweet jelly like candy called jujubes. I used to buy them every chance I got if I had spare pocket money.
My grandfather would encourage me to not ‘waste my cash’ on that ‘junk’. All the things he said were true – it was bad for my teeth, it was probably full of chemicals. He made some very good arguments. But I didn’t stop.
We all have weaknesses we spend our money on. We have a hard day, we think we owe ourselves the treat of a nice dinner, or a vacation after a tough year, or a new flatscreen TV, or that pretty outfit in the window. The temptations are many. It’s hard to walk down a brightly lit cheerful shopping street and not buy something. But there are some saving hacks you can use to get over the temptation.
Some of these hacks actually work. Take it from a former jujube lover: eventually as I got older, I tried to get over my candy addiction by taking a different