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Saturday, September 4, 2010

Personal Finance: What People Buy On Payday



It is interesting to find out that different people with different financial background buy different things on payday, and why they do so.
Enlarge ImageSome people think that to become wealthy, they need to live in a certain lifestyle and buy certain things that the real wealthy people have. Buy doing so many of them would finally end up in a financial turmoil and are far from being what they had always dreamed of: real wealthy or simply financially free.

The truth is, different people with different financial conditions buy different things on payday not because of how much money they have but because of their particular mindset that drove them to buy those things in the first place.

When the poor go shopping...

Poor people would go and buy the things we would simply call 'little stuff'. They buy things that are inexpensive (and sometimes useless) simply because they are inexpensive. The 'little stuff' won't cost them much but it won't worth anything to them over the years -- and because the money was all spent on 'little stuff', this will be the only thing they will have.

Some people who are even less fortunate like many in my own country, Indonesia, won't even have 'stuff'. When they go shopping on payday they buy food and maybe some clothes -- just basic things they need to survive for one month.

The poor won't have enough money to save, let alone invest. So what comes in on payday, goes out on 'little stuff' or food to survive. They simply just don't educate themselves that their income could have been used to create more income -- and this has caused a lot of financial pain. Yet, it does not need to be this way.

When the middle class go shopping...

These are successful people with well-paying jobs and great career. Because of this, society mistakenly considers them as 'the rich'. The middle class would buy things that we would call 'liabilities'. Liabilities are things that cost you money. A car would be a liability -- you would spend money on gasoline, insurance and not to mention the thousands of dollars of monthly payment for the new car. A house should also be considered as a liability -- although some people would call it 'asset', we can't escape the fact that buying and owning a house would actually cost you -- which makes this more a 'liability' instead of an 'asset'. But when you buy a house and rent it out and it pays you money regularly, then the house is called an 'asset'.

Typically, the middle class split their big fat check into two and one portion of it goes out to pay for the down payment of a new car (or a new house) or anything that are actually 'liabilities'. By the next month, they will have created another thousands of dollars of monthly expenses for paying the installments. After this, they would want a new Rolex watch, or another car, or a boat, or an expensive vacation.

The middle class may make big fat paychecks because of their successful career. But if the money that comes in is constantly spent on 'liability', it won't take long until they wind up highly stressed out in a financial turmoil. In the end, the middle class find themselves enslaved by their jobs because of the liabilities. It means they have no choice than to go to work and make more money every month to be able to pay off their liabilities.

The problem with both the poor and the middle class is, generally their income is dependant on their own effort/ time. The case with the poor is, that they exchange their time with their employers money -- while there is only so much you can do in 24 hours with your own effort. On the other hand, the middle class exchange their high education and expertise with someone else's money. As soon as they stop 'exchanging' time and education, the money stops coming.

When the real wealthy go shopping...

Real wealthy people would go out and buy things that we would call 'asset'. Assets are things that pay you money. The example would be investments, stocks, bonds, real estate,... Another example of asset is education. If you buy education and apply it to produce income, your education is an 'asset'.

Real wealthy people would always put aside a certain portion of their income to buy assets like those. The wealthy simply spend their money on things that can produce more money.

If you want to become wealthy you have to find assets that would earn you income and with the income, buy more assets to earn you more income and so on. One example of affordable asset you could buy is a business. Any business that creates for you passive ongoing income is your asset. Passive income is income that requires little work or no work at all. This type of income is the income that you earned from work you did just once.

There are numerous of passive income creation opportunities. One asset that I have found (and is affordable for me) is investing in my own small business, Success University. I find this an invaluable asset because I have free access to the most powerful success oriented personal development education, presented by over 50 of the world's greatest minds in personal achievement. The education that I get is applied in my day job, causing me to earn even more income than before. And the business opportunity of Success Universityis just an outstanding asset that allows you to earn money even during your 14 day free trial.

This article has been written in the hopes that it will be an eye-opening piece of information on managing you personal finances better. By Elisheva Wiriaatmadja

Tuesday, August 17, 2010

5 Key Personal Finance Problems - Which One Do You Want to Overcome?



Personal financial problems can rob you of happiness and contentment. Learning about these key issues now can save you years of heartache later on. It's your life - why not enjoy it?You can take control of your personal finances by applying the lessons listed below.

Problem #1. Spending Without Knowing Your Limits

As in business, you will not last long financially if you spend without regard to your income. Knowing your spending limits is not hard to do. Just find the answers to these 4 easy questions:

Question #1. What is my take-home income per pay? (that is your total income less taxes)

Question #2. What do I need to spend to live?

Question #3. What is the difference after taking spending from income?

Question #4. Can I save enough for my future from the answer in Question #3?

There are many tools to help you gain answers to these questions. You can find many on the Internet. Helpful Hint: Find one that helps you set your savings targets, checks your ability to meet the targets and then shows your progress towards your goals.

Problem #2. Spending Without Setting Savings Targets

It's OK to spend to the limits of your income but that does not provide you with any buffer for urgent purchases, or protect you from a financial emergency. Urgent purchases could be renewing a broken fridge or stove, calling a plumber to fix a broken pipe or having to spend for major car repairs. Financial emergencies could be temporary loss of income or hospitalization of a family member. How would you survive financially in any of these situations?

You can begin to save today, it's easy. What if you went without your bought lunch each day at work? That saves you $1,000 per year on $5/day. What if you reduced your Starbuck's coffee by 1 each working day? That's another $1,000 per year on $5/day. Just those two amounts alone can mean a holiday for you, the beginnings of a savings plan, or an emergency buffer.

If you set a target of 10% of your take-home pay each payday that would be a good start. If you think creatively, you are sure to come up with ways to achieve this. Think of the peace of mind that would bring.

Problem #3. Spending Without Knowing How to Save

There are many easy ways for you to save money that allow you the freedom to spend when you see something you really want. Some of these are:

1. Don't buy on impulse. Ask yourself 2 or 3 times "Do I really NEED this?" before you buy. If you cannot answer with a resounding "YES " let it go.

2. Don't buy things JUST because they are on sale. Only buy things you need. If you do need them wait a few weeks the price may fall even further.

3. Don't buy the latest fashion items at the height of the season. Just wait a while. The prices usually reduce.

4. Don't compare yourself with others and what they have. They may have purchased making the same finance mistakes as you.

5. Set yourself a savings target. Put this money aside each payday BEFORE spending any of your pay.

Problem #4. Spending Without Feeling Satisfied

Spending can leave you feeling pretty shallow and unrewarded when you purchase on a whim or fancy when you really know you cannot afford the item. What's more you may not even use it. What a waste!

To really FEEL GOOD ABOUT SHOPPING and spending you need to know these 4 things:

1. My budget allows me the freedom to purchase this item

2. I have the cash put away already for this purchase (even though I will use my credit card for the transaction).

3. This purchase is something that I really want and will use.

4. I have purchased this item at the best possible price, saving as much as I can.

Problem #5. Spending Without Caring About Your Future

Unless you are planning for your future and financial security, you cannot be really happy. There are always worries lurking in your mind about how you would survive in a financial emergency if you have no savings. It can be very rewarding to see how quickly your savings multiply over time with only a small investment each payday.

Did you know that by saving just $5 every day this would grow into $1,867 in 12 months at 5% interest and then it grows into a whopping $10,343 in 5 years? Isn't your future worth investing in?

Why not start to overcome your personal finance problems today? Looking back you'll be so glad you did!

If you click on the links below you will be taken to a great budget solution. It helps you set your savings targets, checks your ability to meet the targets and then shows your progress towards your goals.

Bruce Hokin has designed a simple budget tool called "5 Steps to Freedom Personal Budget." It based on his extensive background as a qualified, experienced accountant, manager, consultant and financial adviser. You can download this powerful budget assistant today and be on your way to financial freedom within the hour. It is available at his website www.freedom-personal-budgets.com.
By Bruce Hokin

Friday, June 25, 2010

A College Student's Guide to Personal Finance - Five Useful Tips



Here are a few simple tips for keeping yourself out of massive debt during your college years.
I think nearly every college student in the US, aside from a select few who have incredibly rich parents or full scholarships, has to take out a loan or two to pay for college. Thus, the vast majority of us will leave college with both a degree and an IOU in hand. Unfortunately, many young adults who are off on their own for the first time find themselves not only with massive student loan payments but large credit card debts, too. For some, it's the only way to survive. For others, especially those who are receiving a modest living allowance from their parents, it's pure irresponsibility that puts them in a dire financial situation. Even for the most careful of spenders, we can still find ourselves making bad choices or mistakenly overpaying for goods or services.

Is there any way to avoid the pitfalls most poor college students find themselves falling into? Of course! It doesn't even take a major in finance to come up with a plan of action for setting yourself on track to becoming a fiscally responsible member of society. Here are five tips to get you started:
1.Cutting Back!: Cutting back on things that are not absolutely necessary is a good start. Sure, we'd all like to own a Nintendo Wii and the latest and greatest games, but is it necessary? If you already have a friend who has one, go over to their place and get your gaming fix along with a little social time. Or, if you still want some games to play on your own, revisit some of the classic systems of our childhood. Even a basic NES system will provide hours of entertainment. In fact, if you're that into video games, chances are you've got a Playstation, Sega Genesis, or a Nintendo 64 lying around and a decent library of games. If you want a new game, check out a used game shop or eBay for titles you've never played.

Video games are just one example of a way in which you can cut back. One thing that's saved me hundreds of dollars was foregoing cable television. Yes, it's nice to have a variety, but how many of those hundreds of channels will you actually watch? Plus, if you're a full time student, you'd be better off spending your time studying or going out with friends than spending it on a couch watching reruns of Mythbusters on the Discovery channel. If you're close enough to a major city, you can get an antenna to pick up the basic network TV stations. You can even get some of those channels in HD with the right antenna! What's another area where college students probably spend too much? Food. Many of us will grab some fast food in between classes or stop by a coffee shop in the morning for a $5 specialty coffee drink. Sure, these are great to have on occasion, but if you spend $10 every day on food and drinks, that adds up to $300 a month. Even buying a bottle of soda every day will cost you at least $30 a month or more. Pack a lunch, brew your own coffee, and buy twelve or twenty-four packs of pop instead of shelling out more at stores and vending machines.
2.Budgeting: Coming up with a basic budget is simple enough. If you are working part time and get around $400 a month, you can divide that into fourths and allow yourself $100 for food, $100 for entertainment, $100 for additional expenses, and $100 for savings. It's as easy as that. If you budget in a certain amount for "additional expenses", such as unexpected bills or to assist in case you spend too much in another category, but don't use it all, you can either add it to your savings or use it to treat yourself to a new video game or pair of jeans.
3.Work-Study: No matter what school you go to, you can almost always find a campus job. Some schools require you to have work-study funds, but chances are if you're having a hard time paying for school and living expenses, you probably do. If you can land a job like a security guard, library or computer lab attendant, or parking attendant (which is what I do), you'll likely be able to study while on the job. I'm actually writing this article at my job as we speak. Schools will give these jobs to students to help them make enough money to live on while still allowing enough time to study.
4.Bargain Shop: Sure, you might think you already bargain shop. You might shop the clearance rack at the Gap or buy drug store makeup rather than shelling out hundreds at a department store. While that can make a difference, you can always take it one step further. Instead of going to the mall and buying brand new clothes, check out your local thrift store or Ragstock. If you would rather not wear used clothes, another alternative is to shop at discount stores like TJ Maxx or Kohl's. You can find incredible deals, and often you'll find top-of-the-line products for less than you'll find anywhere else. For example, I once bought a pair of Converse All-Stars at TJ Maxx for $10. The price I would have paid at a regular shoe store would have been $50 at the least for the same pair of shoes!
5.Choose Loans Carefully: Not all student loans are created equal. One must be thorough when reading the fine print. I must admit that I'm no expert on loans and the specifics, so the best advice I can give is to speak with your adviser or the financial aid office at your school to find out what loans you are eligible for and which ones are worth your while.
Getting a college degree can be challenging and expensive, but the benefits far outweigh the costs. Not only will you be more satisfied with your career, but you'll also have enriched your life through the pursuit of knowledge. You should be proud of yourself for taking this path in life, but if you find yourself in tens of thousands of dollars in debt afterwards you probably won't be as satisfied with your accomplishment. Take these steps today to protect yourself from debt!
By Janna Seliger

Friday, May 28, 2010

10 Tips For Managing Holiday Spending



Worried about holiday spending? Stop fretting! A little planning will get you through the season with your both spirits and your bank account intact.by Julie Crawshaw

That magical, whirlwind time between Thanksgiving and New Year’s Day—when the pressure to buy is heaviest and managing spending can be difficult—is almost upon us.

A recent Gallup poll showed that American consumers will spend an average of more than $900 buying gifts this year.

Since that’s a mean average figure, many of us need to spend a good bit less—and while nobody wants to think like Scrooge, good planning is clearly the key to managing holiday spending.

Use the 10 tips below to avoid having a "money hangover" when January 1st rolls around.
Hold a family pow-wow: This is a great way to reaffirm the true meaning of the season by planning low or no-cost things the entire family can do to celebrate the season. Putting plans and events on your calendar and post it where everyone will see it daily. Knowing when you’re going to bake cookies, go ice skating or caroling or attend a seasonal concert keeps everyone in the loop and creates a pleasant anticipatory glow.
Make a list and check it twice: Do what Santa does and make a list first. Then remove anyone to whom you don’t genuinely want to give a gift. Remember, the season is supposed to be about giving because you genuinely want to not because you feel guilt or obligation!
Plan purchases and have alternate selections: Ask your "giftees" to suggest three or four things they would enjoy receiving within the price range you can spend. That way, if the sweater at the top of your sister’s wish list is sold out, you have a couple of "back up" choices that cost about the same to fall back on.
Draw a shopping map: As the big day for gift giving gets closer, it’s easy to feel pressure to get your shopping done. But before you grab your car keys and head for the mall, sit down and map out a shopping route that begins with the store that’s farthest from your home. Following a planned route saves gas and time. Knowing exactly where you plan to spend your money help keeps you from making budget-busting random or impulse purchases.
Keep shopping forays short: Short trips make it easier to stay focused on buying only what you’ve planned to buy. They also guard against becoming overtired, which can cause you to mislay your list, lose receipts or make other avoidable errors.
Stick to your budget: While this seems obvious, few people actually do it—much to the delight of credit card companies, whose January statements universally reflect our excessive holiday spending. Keep track of how much you spend on each shopping trip and deduct that amount from your overall gift budget. If you spend a bit more than anticipated for one person’s gift, be sure to adjust your spending downward on one or more of the other gifts you plan to buy.
Give personal gift certificates: When money is tight (and even when it’s not) friends and family members can give personal gift certificates that entitle the recipient to a specific service. A certificate for a special dinner with all the recipient’s favorite foods, an afternoon of babysitting, a day spent cleaning out the garage, getting the spring garden into shape or other service that saves your giftee time and labor are often among the best gifts of all.
Keep receipts: Not every gift works out. The jeans you were sure would fit your brother may not. Your cousin may already have the CD you bought for her. Let recipients know that receipts are available if needed.
Protect your purchases: Never leave packages into the trunk of your car and continue shopping. Experienced thieves who can pop your trunk lid in a few seconds frequent mall parking lots at this time of year.
Plan for next year: If you’d like to have a few more seasonal decorations, don’t buy them until December 26th, when merchants often reduce prices by as much as 75%. Saving money on next year’s holiday d├ęcor and gift wrapping supplies allows you to deduct those costs from the amount you need to set aside for next year’s gift-giving. If you buy a gift you plan to give next year, be aware that it probably won’t be returnable since most merchants impose a time limit on returns.

By Buzzle Staff and Agencies

5 Steps To Getting Ahead With Your Personal Finances



Enlarge ImageFew of us have any formal training when it comes to dealing with our finances. Most of us learn the hard way -- through the school of hard knocks. For some those lessons cost very dear in the form of bankruptcy and lost homes. Others are fortunate to ride the storms out and come out on the other side battered but not beaten.

I have learned my lessons the hard way. I do not come from money and my family had to work hard for every penny. Bad choices and bad luck meant hardship and expenses that had to be paid for with even more sacrifice. However it doesn't have to be that way. Here are the five important lessons, or steps, that will make your road to financial security easier for you and your family.

Step One is simply tracking your expenses. No you don't have to go the route of carrying a little notebook around and jotting down every candy bar or even getting receipts for your morning coffee. However if you want to get a real handle on your money then you need to know where it goes. This means keeping track of all your major expenses and watching the pocket money you set aside for smaller purchases (such as coffee and candy bars). Within a few weeks and certainly by the end of a month you'll know what expenses are eating up your budget which gives you the power to make changes so you can meet your goals.

Step Two is to create a budget. Once you have your basic expenses charted then you need to draw up a budget. First outline all the monetary commitments you have made including housing, transportation, food, clothing, entertainment, etc. Now make a note of your goals such as savings, retirement, etc. What adjustments (if any) do you need to make to meet your goals? The golden rule of financial security is only to spend money you have. That means not using your credit cards unless you can pay them off every month. It is not about making more money but simply living within your means. If you want to spend more money then you need to find a way to either save money in one area or increase your income.

Step Three is planning ahead. Do you have a rainy day fund? What happens when you have unexpected car repairs, dental or medical expenses, or some other unexpected expense? How will you fund this? While some unexpected expenses are just that -- unexpected (and that's why it is good financial planning to have a rainy day fun) -- others can be anticipated. You know after so many miles that your tires will need to be replaced and after so many years your hot water heater can be expected to fail. Start saving before the event so you don't have to utilize your credit and even better if you take the time to shop around and save money too!

Step Four is start saving. You can have just one savings account but likely once you get going you are better off looking into other savings vehicles. Obviously saving your retirement money in your basic savings account is not a good strategy for the long-term. However you can use your savings account to save money for short-, medium- and long-range plans. I start saving for Christmas in January and this strategy means I don't have those depressing post-Christmas bills to pay. It is easy to save a little bit every month and then not worry about how to fund the holidays. Similarly I save for vacations so I don't have to put my fun on credit.

Step Five is doing your homework. It could be as low level as clipping coupons and shopping the supermarket specials but it can really pay off when you look at major expenses such as mortgages and car loans. Should you refinance? Should you simply add another $50 or $100 a month to your mortgage? What are the tax implications of one strategy? Doing your homework certainly means researching and shopping for all major expenses as well as regular bills. My parents moved their cable, telephone and internet service to one provider and saved money while gaining high-speed internet access in the process. I put our utilities on the budget plan so it was easier to control expenses. Our mortgage payment was eligible for a lower rate when drawn directly from an account at the bank holding the mortgage. I designated a savings account and made that account my designated savings account for Christmas and vacations which means most of the time our balance is over the $500 minimum needed for a free account.

This is not tough and it is not a terribly ambitious strategy, but I guarantee if you follow these five steps you will find yourself on the road to financial security.

Deanna Mascle offers more articles about family finance at http://answersaboutfamilyfinance.info or http://answersaboutfamilyfinance.info
By Deanna Mascle

Personal Finance: What People Buy On Payday



It is interesting to find out that different people with different financial background buy different things on payday, and why they do so.
Enlarge ImageSome people think that to become wealthy, they need to live in a certain lifestyle and buy certain things that the real wealthy people have. Buy doing so many of them would finally end up in a financial turmoil and are far from being what they had always dreamed of: real wealthy or simply financially free.

The truth is, different people with different financial conditions buy different things on payday not because of how much money they have but because of their particular mindset that drove them to buy those things in the first place.

When the poor go shopping...

Poor people would go and buy the things we would simply call 'little stuff'. They buy things that are inexpensive (and sometimes useless) simply because they are inexpensive. The 'little stuff' won't cost them much but it won't worth anything to them over the years -- and because the money was all spent on 'little stuff', this will be the only thing they will have.

Some people who are even less fortunate like many in my own country, Indonesia, won't even have 'stuff'. When they go shopping on payday they buy food and maybe some clothes -- just basic things they need to survive for one month.

The poor won't have enough money to save, let alone invest. So what comes in on payday, goes out on 'little stuff' or food to survive. They simply just don't educate themselves that their income could have been used to create more income -- and this has caused a lot of financial pain. Yet, it does not need to be this way.

When the middle class go shopping...

These are successful people with well-paying jobs and great career. Because of this, society mistakenly considers them as 'the rich'. The middle class would buy things that we would call 'liabilities'. Liabilities are things that cost you money. A car would be a liability -- you would spend money on gasoline, insurance and not to mention the thousands of dollars of monthly payment for the new car. A house should also be considered as a liability -- although some people would call it 'asset', we can't escape the fact that buying and owning a house would actually cost you -- which makes this more a 'liability' instead of an 'asset'. But when you buy a house and rent it out and it pays you money regularly, then the house is called an 'asset'.

Typically, the middle class split their big fat check into two and one portion of it goes out to pay for the down payment of a new car (or a new house) or anything that are actually 'liabilities'. By the next month, they will have created another thousands of dollars of monthly expenses for paying the installments. After this, they would want a new Rolex watch, or another car, or a boat, or an expensive vacation.

The middle class may make big fat paychecks because of their successful career. But if the money that comes in is constantly spent on 'liability', it won't take long until they wind up highly stressed out in a financial turmoil. In the end, the middle class find themselves enslaved by their jobs because of the liabilities. It means they have no choice than to go to work and make more money every month to be able to pay off their liabilities.

The problem with both the poor and the middle class is, generally their income is dependant on their own effort/ time. The case with the poor is, that they exchange their time with their employers money -- while there is only so much you can do in 24 hours with your own effort. On the other hand, the middle class exchange their high education and expertise with someone else's money. As soon as they stop 'exchanging' time and education, the money stops coming.

When the real wealthy go shopping...

Real wealthy people would go out and buy things that we would call 'asset'. Assets are things that pay you money. The example would be investments, stocks, bonds, real estate,... Another example of asset is education. If you buy education and apply it to produce income, your education is an 'asset'.

Real wealthy people would always put aside a certain portion of their income to buy assets like those. The wealthy simply spend their money on things that can produce more money.

If you want to become wealthy you have to find assets that would earn you income and with the income, buy more assets to earn you more income and so on. One example of affordable asset you could buy is a business. Any business that creates for you passive ongoing income is your asset. Passive income is income that requires little work or no work at all. This type of income is the income that you earned from work you did just once.

There are numerous of passive income creation opportunities. One asset that I have found (and is affordable for me) is investing in my own small business, Success University. I find this an invaluable asset because I have free access to the most powerful success oriented personal development education, presented by over 50 of the world's greatest minds in personal achievement. The education that I get is applied in my day job, causing me to earn even more income than before. And the business opportunity of Success Universityis just an outstanding asset that allows you to earn money even during your 14 day free trial.

This article has been written in the hopes that it will be an eye-opening piece of information on managing you personal finances better. By Elisheva Wiriaatmadja

Monday, May 24, 2010

5 Key Personal Finance Problems - Which One Do You Want to Overcome?

Personal financial problems can rob you of happiness and contentment. Learning about these key issues now can save you years of heartache later on. It's your life - why not enjoy it?You can take control of your personal finances by applying the lessons listed below.

Problem #1. Spending Without Knowing Your Limits

As in business, you will not last long financially if you spend without regard to your income. Knowing your spending limits is not hard to do. Just find the answers to these 4 easy questions:

Question #1. What is my take-home income per pay? (that is your total income less taxes)

Question #2. What do I need to spend to live?

Question #3. What is the difference after taking spending from income?

Question #4. Can I save enough for my future from the answer in Question #3?

There are many tools to help you gain answers to these questions. You can find many on the Internet. Helpful Hint: Find one that helps you set your savings targets, checks your ability to meet the targets and then shows your progress towards your goals.

Problem #2. Spending Without Setting Savings Targets

It's OK to spend to the limits of your income but that does not provide you with any buffer for urgent purchases, or protect you from a financial emergency. Urgent purchases could be renewing a broken fridge or stove, calling a plumber to fix a broken pipe or having to spend for major car repairs. Financial emergencies could be temporary loss of income or hospitalization of a family member. How would you survive financially in any of these situations?

You can begin to save today, it's easy. What if you went without your bought lunch each day at work? That saves you $1,000 per year on $5/day. What if you reduced your Starbuck's coffee by 1 each working day? That's another $1,000 per year on $5/day. Just those two amounts alone can mean a holiday for you, the beginnings of a savings plan, or an emergency buffer.

If you set a target of 10% of your take-home pay each payday that would be a good start. If you think creatively, you are sure to come up with ways to achieve this. Think of the peace of mind that would bring.

Problem #3. Spending Without Knowing How to Save

There are many easy ways for you to save money that allow you the freedom to spend when you see something you really want. Some of these are:

1. Don't buy on impulse. Ask yourself 2 or 3 times "Do I really NEED this?" before you buy. If you cannot answer with a resounding "YES " let it go.

2. Don't buy things JUST because they are on sale. Only buy things you need. If you do need them wait a few weeks the price may fall even further.

3. Don't buy the latest fashion items at the height of the season. Just wait a while. The prices usually reduce.

4. Don't compare yourself with others and what they have. They may have purchased making the same finance mistakes as you.

5. Set yourself a savings target. Put this money aside each payday BEFORE spending any of your pay.

Problem #4. Spending Without Feeling Satisfied

Spending can leave you feeling pretty shallow and unrewarded when you purchase on a whim or fancy when you really know you cannot afford the item. What's more you may not even use it. What a waste!

To really FEEL GOOD ABOUT SHOPPING and spending you need to know these 4 things:

1. My budget allows me the freedom to purchase this item

2. I have the cash put away already for this purchase (even though I will use my credit card for the transaction).

3. This purchase is something that I really want and will use.

4. I have purchased this item at the best possible price, saving as much as I can.

Problem #5. Spending Without Caring About Your Future

Unless you are planning for your future and financial security, you cannot be really happy. There are always worries lurking in your mind about how you would survive in a financial emergency if you have no savings. It can be very rewarding to see how quickly your savings multiply over time with only a small investment each payday.

Did you know that by saving just $5 every day this would grow into $1,867 in 12 months at 5% interest and then it grows into a whopping $10,343 in 5 years? Isn't your future worth investing in?

Why not start to overcome your personal finance problems today? Looking back you'll be so glad you did!

If you click on the links below you will be taken to a great budget solution. It helps you set your savings targets, checks your ability to meet the targets and then shows your progress towards your goals.

Bruce Hokin has designed a simple budget tool called "5 Steps to Freedom Personal Budget." It based on his extensive background as a qualified, experienced accountant, manager, consultant and financial adviser. You can download this powerful budget assistant today and be on your way to financial freedom within the hour. It is available at his website www.freedom-personal-budgets.com.
By Bruce Hokin