Sunday, March 15, 2009

Budgeting in Six Easy Steps

Budgeting in Six Easy Steps
by Consumer Credit Counseling Service of Greater Washington

Creating and sticking to a personal budget is a vital part of personal financial planning.

Consumer Credit Counseling Service of Greater Washington offers an easy, six-step method for arriving at a budget you can live with:

Step 1
Determine your monthly income. Take into consideration your payroll deductions (health insurance or other group benefits, income taxes, union dues, pension) and other sources of income.

Add together all income, less deductions. On a piece of paper record the resulting figure as "value a."

Step 2
List your "fixed" and "variable" monthly expenses, such as housing, utilities, food and transportation. Remember to allocate funds for clothing, medical care, child care, personal expenses, recreation and emergencies/repairs.

Break down your annual, semi-annual and quarterly expenses (taxes, insurance) into a monthly figure that can be put aside and withdrawn when these bills become due. Example: car insurance that is $150 every six months needs $25 per month set aside. You will earn interest on these funds and will have no problems meeting all other expenses in the months these become payable.

Remember not to duplicate expenses that may already be deducted from your paycheck.

Add all of your expenses - this is "value b."

Step 3
The next step is to find your "discretionary income" by subtracting your total expenses (b) from your total net income (a). Write this number down on a piece of paper as "value c."

Step 4
List all unsecured debts (credit cards etc.), the monthly payments and the balances. If you don't know your exact debt amount, now is the time to determine it.

Record your monthly total as "value d" and continue with the next step.

Step 5
Some of your discretionary income is committed to the installment debt listed above. Step 5 is to determine if you have any remaining discretionary income after making these installment payments by subtracting your total monthly payments to creditors (d) from your discretionary income (c).

If this figure is a negative number, you are not ready for Step 6 - Setting Goals. Consult a personal financial counselor and work on getting this figure into the positive numbers.

Step 6
It is now time to establish short and long-term goals. Make a list of these goals, using these examples to help you get started.

* Long Term - real estate purchases, future education, retirement
* Short Term - home improvements, new car, travel
* Other Desired Investments - stocks, bonds, CDs, mutual funds

Once you have made a list, determine how much you need to save monthly by dividing the amount of money required to meet each goal by the number of months that you have available to save for it.

Glen :-)

Thursday, March 12, 2009

The Middle Class Bailout

93.75% of ALL Online Business Owners Regularly Make Thousands of Dollars Per Month in their own Business, With Almost ZERO Effort.

The Ultimate Economic Recovery Recipe for the ordinary person to build your Income From Home

The online community provides you with the Ultimate Solution for your personal economic recovery. It really does not matter where you are in the world, the recession will touch you.

The possibility of Foreclosure, Job Layoff or Business closings will cause income disaster for everyone affected. Yet, the backbone of the world economy will be saved by the small entrepreneur. Working for Income from your Home Computer is now exploding all over the World, and it is creating a personal solution to households in their private income recovery.

There is only one way to save the World Economy and the US Economy from the Toxic Sub Prime Mortgage meltdown and reverse the disastrous raping of the ordinary American Household by The International Money Elite.

Create online entrepreneur business like The Home Income Portal to earn income from home.

Glen :-)