How to Create a Monthly Budget that Works for You

Making a budget is an important way to save money. A budget also helps you live within your means. It helps you become more aware of your expenses, and finally a budget can help you reach your financial goals faster. 

Budgeting certainly doesn’t sound like much fun, but I promise it isn’t that bad. If you follow some simple steps you’ll get the hang of budgeting, and once you get started you may even begin to see it like a game.

Step 1: Know what you have, what you earn, and what you owe.

You can’t create or stick to a budget if you’re ignorant about your finances. It’s time to start digging through your paperwork: your bank statements, credit card bills, any loan documents or other kinds of debt you have, and your income statements. 

Find out exactly how much you have in savings, checking, and investment accounts. Know how much you earn, which is more than just your paycheck. Your benefits are worth money.

Step 2: Make financial goals.

You can make a budget without having any goals, but it won’t be much use. Now that you know exactly what you have and what you owe, come up with some goals for your future. 

Do you want to pay down debt from cash loans, online loans, auto title loans, or student loans? Do you want to improve a bad credit score? Do you want to save for something in particular? Know what your goals are so you can target your budget to meet them.

Step 3: Track your expenses for at least a week.

Next you need to know how much you’re currently spending. This will give you an idea of what you’re accustomed to spending and where you are spending too much. 

Take at least one week, more if you can, to record and track every penny you spend. Be specific and record exactly what you buy and why. Do everything like you normally do so that you get an honest picture of your money habits.

Step 4: Categorize your spending and look for places to cut back.

Take a good, hard look at your spending habits and sort and categorize them. Separate out your spending into essentials and non-essentials in particular. 

Look for areas in which you can cut back and make your cut-backs appropriate to your saving goals. The bigger your goals are, the more you will have to cut back. This is the time to really consider how frugal you want to be, or can stand to be. 

You want to save more, undoubtedly, but you have to decide how much you’re willing to sacrifice to meet your goals. Will it really be possible to cut out your afternoon coffee? Or will that make you miserable? Make cuts that make sense, but also match your lifestyle.

Step 5: Pick a budget strategy.

When it comes to the hard work of deciding just how much you’ll spend in each category, you may find you’ve hit a roadblock. 

This is where it helps to use strategies that have been created and road-tested by experts. 

For instance, the 50/30/20 budget is a good basic guideline to follow: 50% of your expenses go to essentials like rent, utilities, and food; 30% goes to unnecessary expenses, like your afternoon coffee, your phone bill, or eating out; the final 20% goes to savings, investments, and reaching goals.

Step 6: Use a budgeting tool.

Once you have a budget created, you need to continue tracking your expenses and monitoring how well you stick to the plan. 

Tools can help with this. At the most basic level this means keeping a pen and paper record or a spreadsheet of spending and saving. If you want to get more high-tech with your budgeting you can decide to use online tools, like Mint to track your spending and how well you stick to your budget.

Step 7: Re-evaluate regularly.

Your budget shouldn’t be set in stone. As your circumstances change, your budget should also change. You might get a new job and start earning more or less money. You may come into an inheritance, change your financial goals, or start a family. 

Every few months, or at least once a year, re-evaluate your budget and adjust it as necessary. Decide if you are happy living with restrictions or if you have been too hard on yourself. Change the budget as needed to meet your goals, but also to make you happy.

Budgeting doesn’t have to be a chore. And the key to sticking with a budget is to make it work for you. There is no one-size-fits-all budget plan. 

Get started with these steps and, if over time, you find that your budget isn’t working, change it. Eventually you will find a plan that makes the most sense for your goals and for your lifestyle.

Short Terms Loans for a Rainy Day

The need for a loan can come at any time. It arrives without warning whatsoever. Fortunately, there are short term loans that can provide a viable and substantial solution to your problems. 

Unlike their cousin, the long term loan, they’re much easier to apply for, acquire and pay off. Here are several benefits and shortages you need to know before taking a loan.

Loans witch Easy to Process

Car title loans Fontana are very easy to come by, compared to long term loans that are usually acquired from banks and private companies. 

Most short term loan companies only require the amount of cash needed, the monetary value of the vehicle that’s being put up as collateral, and the ability of the client to pay, which can be checked through a variety of credit types.

There are also online processes available where interested parties can just accomplish a simple, no-fuss and easy to understand form and provide all the information in the quickest way possible. This means that individuals can get the cash as quickly as possible. And they can get fast loans from $2500 to $20,000.

In connection with online availability, that also means that the application process is not bound by store hours or business hours. Anyone can apply for a loan in the website and fill up the form, 7 days a week, 24 hours a day.

Looking For Smaller Interest Rates

Car title loans have smaller interest rates, compared to larger loans from other companies. This means that the expense in the long run is smaller and much easier to manage. You won’t have to worry so much with the payments you will have to make in the near future.

Short Payment Terms

One of the legitimate hassles of taking out a long term loan is that it takes several years, or even decades, to pay off. These are typically short. With just a couple of payments, you can pay off the debt and leave it behind.

With so many benefits available, it’s easy to figure out that short terms loans are one of the best answers to immediate financial concerns. This is one of the smartest options available, so make sure you explore this option and try it out during an emergency. You will not regret it. 

Technical Definitions

Long-term vs. Short-term debt

1. Long-term debt -Loans and financial obligations lasting more than one year. Examples include home mortgages and student loans. Also known as noncurrent liabilities.
2. Short-term debt - Debt due in one year or less. Also known as current liabilities.

Secured vs. Unsecured debt

1. Secured debt - Debt backed or secured by collateral to reduce the risk associated with lending. An example would be a mortgage. Your house is considered collateral towards the debt. If you default on repayment, the bank seizes your house, sells it and uses the proceeds to pay back the debt. Assets backing debt or a debt instrument are considered security, which means they can be claimed by the lender if default occurs.
2. Unsecured debt - A loan not secured by an underlying asset or collateral. Unsecured debt is the opposite of secured debt. Unsecured debt carries more risk for the lender, which in turn makes the loan more expensive. The more additional risk that a lender must take on, the higher the rate of interest a borrower must pay, making unsecured loans subject to higher rates.

Money Managing Master: Become an Expert at Financial Fitness

Managing money and personal finances is not an innate skill that people are born with, but is something that takes time to learn. 

Managing your money will not only increase your personal wealth but can lead to long-term stability with enough practice. To become a money managing master, there are a few ways to increase your financial fitness and see results in a short amount of time.

Save an Emergency Fund

There are a number of different costs that you may need to pay for that you don't plan for financially. From medical bills to car repairs, it can be difficult to afford the expenses if you don't have money set aside ahead of time. 

Plan for the future by saving $1,000 in an emergency fund when it's needed. This will avoid getting into debt or over drafting on your checking account.

Create a Budget

The first step to take to have complete control over your finances is to establish a budget. Calculate your household income and write down all of your expenses each month. 

It's also important to factor in the cost of auto loans and mortgages to ensure that you make payments on time and can avoid late fees, which will affect your credit score. 

Professionals, like those at Saginaw Medical Federal Credit Union, know that taking control of your finances builds financial health. Write down the date that your bills are due each month and set up automatic payments to avoid missing the due date.

Set Goals

Financial experts always have goals established to increase their net worth and allow their money to grow. Set both short and long-term goals, which can include paying off your home, saving for your child's college tuition, or growing your investments.

Pay Off Debt

Debt is one of the main inhibitors to maintaining your money and can make it difficult to thrive financially. Perform the snowball method, which includes paying off accounts that have the smallest amount of debt first. 

Once an account is paid off, you'll feel motivated to continue your progress and can move on to the next account that has the smallest balance. If multiple accounts have the same balance, opt for paying off the account that has the highest interest rate.

By learning important skills and practices of managing your money, you can become an expert and have complete control over your finances. 

You'll not only be able to avoid stress and anxiety, but can enjoy long-term stability that allows you to prepare for different circumstances in life.

Learn the Benefits and Features of Medicare Supplement Plans Before You Have to Use Them

Insurance, a means of savings, is the most helpful thing for the modern human being. It has very much integrated into the modern life style that almost all human beings without failure has some sort of insurance policy to cover their expenses. 

State mutual insurance, Medicare, is the best one among the many insurance policies available today.

Medicare is the health policy available with many plans and supplements. The federal government has standardized all supplement plans and hence there cannot be any confusion in the structure of features among the various plans. 

Medicare and its supplement plans start from A and ends in N. Before purchasing the suitable plan, it is mandatory to know the features and benefits in order to select the most suitable one. 

Benefits and features of Medicare plans:

• State mutual insurance offers plans A, B, C, D, F, G, M and N. Plans K and L are not offered by state mutual. 
• Even after the benefits are used up for the normal period, Hospital cost for additional 365 days is offered by Medicare Part A Coinsurance. 
• Medicare Part B is applicable by all the available plans. 
• First three pints of blood is offered by all plans 
• Hospice care co-payment of Part A by all plans 
• Co-insurance of nursing care which is a professional care is applicable by plans C, D, F, G, M, and N. This is charged in the billing amount from the 21st day to 100th day of the hospital stay. 
• Medicare part A is deductible by plans B, C, D, F, G and N. This is applicable 50% by plan M and is only after the first sixty days. 
• Medicare part B is deductible by plans C and F only. The amount set by Medicare for a year is applicable for many services like outpatient and inpatient services, physician services, supplies and surgical services, speech and physical therapy. 
• Additional Charges of Medicare Part B is applicable to plans F and G only. This covers all the differences 100% that arise in between the actual billing and Medicare Part B Charges. 
• Travel emergency to foreign countries is applicable to C, D, F, G, M and N. 80% of charges in excess to $250 is provided in a foreign country for one year. It can be utilized maximum up to $50,000 during the policy holders’ lifetime. 
• Co-insurance of part B for Preventive care is applicable for all plans. 
• Plan F is a highly deductible plan. Up to $2,110 is deductible and hence the Medicare costs covers the remaining amount. 
• As far as plan N is concerned, it pays 100% coinsurance of part B. However, policy holders need to pay $20 for office visits and $50 for unexpected emergency visits. 

Thus, insurance, especially for health, has become very beneficial to the policy holders to enable sudden and unwanted expenses regarding health care treatments. The only thing for the people is to study their various aspects of a plan and find out the most suitable and beneficial one for him.