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November 2018

Four Easy Personal Finance Expense Categories

Having easy finance expense categories can make it a LOT easier for you to stick with your personal budgeting commitment long-term. You know how it is when you try to put together a budgeting system, but you have 37 expense categories to look after. Who can live their life that way on a consistent basis without deviating from the system? It is almost impossible, and that is why the four bucket system keeps it simple when it comes to managing your expense categories.

Introducing the Four Bucket Personal Finance System

When you think about it, there are only a few major categories when it comes to budgeting: living expenses, investing, reserve spending and gift giving. Everything fits into one of these four categories or “buckets,” and so keeping these as your expense categories will make it much easier for you to stick with your commitment. How do you get started in using the four bucket personal finance system?

Start With Your Priorities

The first step to using the four bucket system is arranging the four categories according to your personal money management principles. For example, placing them in this order has proven to be very effective for people who want to build personal wealth:

1. “Pay Yourself First” (accumulating capital to create new wealth)

2. Living expenses

3. Contributions (includes charitable giving)

4. Reserve (building an emergency and special purchase fund)

This is backwards to the way that the majority of people manage their personal finance expense categories. Most people start out by paying their living expenses and investing what is left over…this is a surefire way to make sure that you never start investing.

There is an old saying that goes: “Poor people are poor because they spend their money and invest what’s left. Rich people are rich because they invest their money first and then spend what’s left.”

If you apply this principle in using the four bucket personal finance system, you will never miss the invested money. You will adapt to pay your living expenses without it, and this will put you on the road to building wealth and financial security.

So sit down with these four personal finance expense categories and apply the four bucket personal finance system to managing your income and outgo. For best results, put “Pay Yourself First” and start making your wealth building and financial security the number one priority.

Learning How to Manage Your Debt Negotiation

Since we live in a credit culture, we have to reside in a debt culture too. And in case you use credit to buy, then it only means that you are in debt. But simple debt is not a problem, its excess debt. Not being able to manage your debt is an extension of not being able to manage your personal finances. It can lead to many health as well as marital difficulties. It’s important to learn how to control your debt, and in case it is already out of control, what to do to survive the situation.

Consumers are generally unaware of their risks with their unpaid debts. A creditor can sue you in court and if he is able to win a judgment, the creditor can take your garnish your wages or come & get your property. But usually this does not happen. It is too much of an effort for them to take any kind of action against you. What usually happens is that your creditor will go to a junk debt buyer who will buy and sell debts and then place them into million dollar packages. These packages sell on Wall Street, very much like a secondary mortgage market.

At times, consumers may feel intimidated by their debts which are overwhelming. They feel that they can do nothing other than file a bankruptcy. Consumers believe that collection agencies will come & seize their property. But for these actions to take place, the creditor needs to first go to court. Due to this lack of information, many consumers turn quite prematurely to bankruptcy. Bankruptcy should never be used until all the options have been exhausted, as well as the settlement procedures. You can get out of your debts by settling or by filing a bankruptcy. You may even try debt validation.

Before you try to settle a debt, do check the statute of limitations first. Remember that collectors are bound by a certain amount of time in which they can sue you for payments. So determine if the statute of limitations which is there for collecting a debt in your state is still there or it has past. In case your debt is older than the existing statute of limitations, the original creditor or the assigned collection agency cannot take you to the court to get a judgment.

After seven years, a negative mark and the related collections will disappear from your credit report. If any debt has gone unpaid for 7 years, then it cannot remain on your credit report. You can always challenge this listing on your credit report and it will have to come off. The amount of time any late payment can remain on your credit report is irrespective of the statute of limitations.

Creating an Effective Personal Finance Budget

A personal finance software is the most progressive solution that you can get with your limited or extended cash options. The easiest to use personal finance software with which you can manage your personal finances is Desktop Budget. You can create your own customized financial budget using this new accounting software. You can record the monthly as well as annual income and expenditures to keep you focused on your expenses. This will enable you to be on guard against spending outside your means. Be it your retirement plans or your expenses on your children’s education personal budgeting will keep you in sync with your resources.

It helps you to analyze your spending and savings habits. You will also be informed of the latest currency exchange rates. As these types of budgeting offers calculators you can calculate the loan amount without depending on others. It offers a tabular representation which makes it easy to process and calculate future payments. Your day to day financial activities are recorded for future references. A Personal finance manager alone can guide you through this imbroglio.

This will help you to stay off from indulging in unwanted expenses. Its effective personal debt management keeps track of your expenses and guards you against falling into debt trap. It will also introduce you to many insurance policies and funds that will enable you to save for a rainy day. A personal finance software is a reliable tool and is like a good friend who will warn you of lurking danger. Your life will be secured if you give the reins to the personal finance manager.

Expenses are numerous and it needs the ingenuity of a useful tool to track down. Expenses like house help, grocery, medical help, laundry, basic amenities, phone, mobile, transportation that contribute to the household expenses and the Lifestyle expenses include expenses on newspaper, clothing, entertainment books, personal care, eating out, travel, holiday, and club or gym membership all get incorporated in personal finance.

Managing Your Money Effectively

Life is what we make it, or so they say. But at times when the going gets tough and nothing comes your way; this aphorism holds no good. Sort of a way-out that could drag you out of the predicament: seek the help of a personal finance manager. Make most of the life by catching hold of the opportunities that come your way for they may come only once. Avail software solutions to quash the grievances that sweep you off your feet.

Accounting software is easy to procure and spares you from the doldrums associated with spendthrift habits. The facility acts a redeemer and can save you from utter disaster. Personal finance incorporates along with spending, your savings account, investments, insurance, funds and so on. However much one may earn, still no one can escape the anguish of life that present day life style presents. As the prices soar high so the miseries too….. Many companies grant you credit funds, but the problem is that you become a doubting Thomas as you are not aware of the pitfalls of these offers.

If you use a personal finance software to understand the intricacies of the offers you will reap its benefits. You can manage your personal finances using Desktop Budget.Investing in profitable ventures is the best way to avoid taxation. But how to verify the credibility of the offered plans…? A personal finance manager initiates you into the scheme tailor made for you. If you are confused over selecting the best plan this tool will help you in taking the right decision. It is a renowned financial management application designed to serve you.

Financial investment portfolios are tracked down more easily by using this software. Customized budget categories are defined by it. It keeps a record of transactions both income and expenses and inform you how much would be allocated for each category of activity beforehand to look into it while spending.

How to Handle Personal Finance

The truth hurts, but the reality is that responsibly managing your personal finance is and can be a very difficult (if not the most challenging) thing you can ever hope to achieve, and it is little wonder then that so many people end up struggling and throwing in the towel. However, all it requires is patience and self-control. Once you manage to learn the basics and stick to them rigidly, you will be able to avoid any major issues that may arise.

What exactly do we mean when we say “managing personal finances?” First and foremost, you need to learn the skill of keeping your expenses to a minimum, and not squandering your precious income on counter-productive things such as credit card bills. Credit cards can often be more trouble than they are worth and so they should be considered with a considerable degree of caution. Whilst they provide short term benefits and freedom, they can be very damaging in the long term.

The next issue to try and be aware of is the value of actually saving a percentage of your money at the end of every month. This means that you will be less likely to spend that cash which is stored in your savings account and it also means that you have a financial safety net to cushion you if things get a little tough.

Having a good job with decent pay is another important factor as it means that you have a steady income and stability. By having a routine and structure, you will be able to control your spending even further, as you will be less inclined to spend money you do not have. By delaying purchases until payday, you will be able to reduce the temptation to fritter money on silly purchases.
By implementing and mastering the issues raised thus far, you will be on the way to having total control of your personal finance as well as your life.

Find Your Passion For Personal Finance

The human spirit is undeniably capable of inspired heights of creativity and accomplishment when it is applied to meet an ends, but sadly management of one’s personal finance rarely invokes passion. Finding the passion and inspiration hidden behind the interest rates, bills, loans, numbers and financial instruments will awaken your true ability to create financial increase in your life.

Rather than a passion for finance and money management, most are filled with feelings of avoidance, anxiety or even fear. When banker begin to discuss the interest rate offers from their stable of loans, or the increasing need for diversification many unfortunately respond with blank looks and disinterest. When your investment broker details the available CDs, mutual funds, or annuity options most are satisfied to let the broker guide the ship that is your personal financial portfolio. Many see their personal finances as attached to feelings such as boredom, anxiety or fear, but it is essential to find the passion for your finances.

Is there truly a passion that can be found in managing your personal finances, you might ask? You betchya! Managing your money is an art as much as painting, writing, or music, in which seeking the perfect harmony of income, investments, and risk can provide untold rewards to both the pocketbook and the spirit. Managing your money, in turn, is also a science, with a set of rules that can be tested and which if followed lead to financial increase, and these rules, if broken, lead to bad credit and financial ruin.

Passion can be found in the managing of your money. There are all the worlds options to pursuing financial increase and providing service for others in profit. You can choose to pursue investments, learning its mysterious ways. Perhaps the study of business is your choice, in the pursuit of the profitable exchange of goods and services, leaving happy customers in your wake. Finding the passion for what you do, and your personal finances will help you find inspiration and creativity in the means you go about creating your dreams.

There is nothing to fear in managing your personal finances, rather it is an experience that can truly be enjoyed. Take pride in the increases you are able to find, and the constant improvement your hard work yields. Rejoice in the satisfied and happy customers you are able to serve. Let your spirit soar and create the financial harmony your life deserves.