Unwise Reason to Spend Money

There are many people who just can `t control their spending habits. And this is only a problem if other areas begin to suffer in life. This suffering is intrinsic, financial or just in general, whether it's with family, friends or at work. Often there are reasons why someone has the need to spend and it's often when they are raised these questions about the spending stops.

Money can be like an addiction. It is so addictive that it is who you are and what your routine looks like. It could be the habit of going to the store and buy what you have and how to buy things just because people at that time. Often, a shopper's paradise with a problem to buy on impulse and buy in quantity and quality. This means that they buy to be in a position to four dresses without trying them on, or they may not think before you purchase an item not even necessary if it costs too much money, can have.

Feeling like you have an addiction to money means that after making your purchases, you feel over whelmed with guilt and grief. You can come home and do not even know what you have to be ashamed of some of the things that one has, but perhaps the feeling that they take them back to buy.

If you have family members and friends, the question about your money, you can have a little insight into what they see. Often, you will probably not like other people notice view you, because they say nothing, but if they do voice an opinion, it may be time to what they have to say.

Money for items that do not need, can take a heavy financial burden for you and your family. You could ignore key points, or bills to pay for impulsive article. This kind of stress can put a heavy toll on living, or in a family. Financial stress is one of the number one cause of divorce.

It could be a breaking point, where your family breaks up, or your financial walls come crumbling down around you, where you address that need help. There are ways to fight for the dependence of over-spending and it takes some quick soul searching only. Many times my item comforts us in any way. It makes us feel good to buy new things and spend money, there is a little piece of heaven attached to it. But you have to ask if you only buy things when you comforting. This is to address an important issue. Have you run to the mall, if you feel bad about something? Do you have more money for food if you know you can `t afford?

Some have strict self-discipline to take place for change to occur. You can talk to your doctor about seeing someone for counseling to deal with the emotional aspects. You can also contact your bank and make an appointment to speak with someone. Your banker may have a monthly budget and help you search for ways to pay off bills and save money.

Often change the way you think that your expenses will change. Take a temporary second job and collect the money in a separate account. When you go shopping you will start using the item that you buy and think how much they cost and how much work you had to do to pay for each item. Start to do the things that make you pay in cash, the bank card at home and in other ways to console yourself when you need it.

The Complete Idiot's Guide to Money for Teen

Teens are targeted as consumers more and more. This gives them tremendous influence, but it also sets them up to be taken advantage of. "The Complete Idiot's Guide to Money for Teens" teaches them how to get money, save and invest it, budget it, spend it wisely, and keep track of it. Whether they're saving for their first car, trying to make sense of a checking account statement, or trying to establish a good credit history, this guide has solid information and teen-tested tips.

Why money is so important in our society, how one can go about earning money, and other topics such as budgeting, debt and investing. The author provides concrete information that is beneficial for any teen who wants to become familiar with the basics of financial management. Shelly writes on the level of a teen-ager, short and to the point. She leaves out the extra, useless information that would cause narcolepsy in most of today's teenaged population. Shelly goes into detail about how to "make your money work for you." She talks about the benefits and disadvantages of different types of savings accounts, checking accounts, and money market accounts. The Complete Idiot's Guide to Money for Teens is a great book for anybody who wants to be more financially savvy. The essential information it provides will send any teen on his or her way to a financially successful future.

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Basic concepts in personal finance that every teen should know

Most teens don't know they hold one of the most sought after keys to financial independence: time. The Teen's Guide to Personal Finance illustrates basic but critical financial concepts like the power of compound interest, in an engaging format that makes sense to young adults.

As teens, authors Joshua Holmberg and David Bruzzese were not taught these concepts in school or at home. They had to learn hard financial lessons about runaway interest rates on credit card balances, the money they could have earned had they invested a small portion of their summer earnings rather than spent it, and more.

The Teen's Guide to Personal Finance is a must-read primer for all teens as they become more independent and more responsible for the financial choices they make. From opening a bank account to investing in mutual funds, The Teen's Guide to Personal Finance provides a sound foundation of financial knowledge upon which young adults can build realistic strategies to achieve financial independence.

By learning key financial concepts in The Teen's Guide to Personal Finance, teens will be much better prepared to avoid financial pitfalls while taking advantage of the time they have to build wealth through goal-setting, saving, investing, and maximizing their tax advantages. The easy-to-read format provides ample stories, graphics, action plans, and worksheets to help teens easily understand key concepts, and most importantly, get started immediately.

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Financial Peace Jr.: Teaching Kids About Money!

I purchased this product to use with my 3-year old son. He loves it! In fact, it's a frequent topic of conversation.

He likes giving me updates on his "jobs" for the day. This product will help you to teach your children, even young children, the value of money and the linkage to hard work.

Dave's system splits up the child's earnings into 3 categories: giving, saving, and spending. My son enjoys all 3: giving money (tithe) at church, saving money for a big toy, and spending money on little cars or candy bars. I highly recommend this product.

You can see more information HERE

The Total Money Makeover: A Proven Plan for Financial Fitness

In this fresh, interactive guide, respected financial expert Dave Ramsey offers a proven, comprehensive plan for getting in shape financially. The Total Money Makeover Workbook takes you one step closer to getting out of debt and achieving financial health. Against a playful backdrop of fitness terminology, Dave gives solid, hard-hitting advice and the hope and the how-to needed to turn goals into reality. The Total Money Makeover Workbook includes:

• Useful worksheets and forms
• Readable and informative charts and graphs
• The four factors that keep people from getting in shape financially

The Total Money Makeover Workbook is an essential resource for anyone desiring total financial fitness. Dave's no-nonsense, tell-it-like-it-is approach translates into results for those who diligently follow this complete action plan. Tens of thousands of people have already transformed their financial situation with Dave's advice, rooted in God's and Grandma's common sense. With The Total Money Makeover Workbook, countless others will be on their way to financial fitness.

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Personal Savings From the Right Perspective

What is the first thing that you must do in order to achieve your personal financial targets? In most cases, it is best to start with a new savings account. Financial management gurus emphasize the importance of taking a tight rein on both ends of your finance spectrum. You need to establish a realistic budget and manage your outflows and set up an emergency fund. In most cases, you will have a high yielding savings account as your emergency fund.

It is essential that you treat this emergency fund as money that you can afford to put away. You have to remember that you are not motivated by high rates of return when you set up your savings account. Your main goal in setting up your savings account is to have a standby fund which you can draw from during the "rainy days." There are other investment options which can give you the same benefits as that of savings accounts. However, the latter is tops when it comes to ease of use and flexibility.

But this is not the only reason why you are going to set up your savings account. There is more to it than meets the eye. In fact, you can adopt a more progressive approach in as far your saving portfolio is concerned. First, you may come up with three different and distinct savings accounts. You can have different saving accounts for each of the following purposes:

• Funds for emergency situations
• Funds for short to medium-term investments
• Funds for a long-term (loftier) goal

While each of these saving accounts has distinct purpose, they share something in common. All of these savings accounts contain funds which are not meant to be used anytime soon unless something really serious comes up. On top of this, you have to be satisfied with the modest yields that you will get in return for the security that saving accounts provide for your money.

This paradigm shift will bring you out of the usual mindset of looking at IRAs, 401(k) and stock investment to maximize returns of your investment. There is one thing that we want to avoid - higher risk. With savings account, you are able to manage the risks much better compared to high yielding investment instruments. High yield investment options do have the potential in delivering windfall profits. However, you can also lose your shirt if the stock market suddenly makes a nosedive, notwithstanding the careful and comprehensive financial planning that you perform before making your decision. When going for savings account, you have to be aware of the fact that your primary concern is to put in your money in a financial vehicle that is relatively more secure and stable. It is your veritable security blanket which you can rely on anytime.

Most Canadians, particularly those who belong to the under 50 age bracket, follow the same spending behavior as that of the Americans. In a recent financial study sponsored by Mackenzie Investments, results show that over 32% of respondents under age 50 exhibited overspending tendencies, while 24% were categorized as absolute of over spenders. One of the glaring revelations of the study was the tendency of more than half of the respondents (53%) actually resort to their credit cards to purchase items every time they don't have enough cash on hand or money in their savings account.

The results of the study show that Canadians have the general tendency to "spend first and ask questions later." It is for this reason why there is a need for us to overhaul our spending behavior and go the extra mile to improve our savings portfolio.

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Start Thinking About Saving

We can find people searching ways to earn more and more but never think to lower their expenses. If we reduce our budget, we can raise our saving to a great extent. People generally waste millions of pound daily in useless work like purchasing expensive clothes, having meals in classy restaurants, outing and other entertainments.

There are many ways to save money. Transportation is a common and important source of saving. If we use public transport instead of our vehicle, we can find a good result. Although using public transport is little painful but can help us a lot in money saving. Another source is entertainment. If we reduce our budget of outing, clubbing, movies and other extravagant activities, we can save our money without having much pain. We generally spend a big part our income in utility bills. The people of hot climatic regions spend much on cooling while the people of cold climatic regions have to spend lots on heating. These expenses can be reduced by using fans and coolers for cooling and wood stoves for heating.

A savings account is the most convenient place to save money but sometime we need more appropriate place to save our money. There are fixed deposit accounts available in banks where we have to deposit for a particular time period and we cannot withdraw before that. There are many investment schemes available which helps us not only to save but also to raise our money. Mutual fund, pension fund, provident fund etc are some of the ways to invest and get extra benefits from our savings.

I am a freelance article writer and I mostly write about management, financial reporting, business strategies and trust outsourcing.

Article Source: http://EzineArticles.com/?expert=Charlize_Reyan

Financial Freedom

When talking about financial freedom, different people can mean entirely different things. For some it means getting to do what they want because they have enough money. For others it means having enough income from investments that they are free of any financial concerns.

Of course, few people are actually unconcerned about financial matters regardless of how much income they have. Some even get more worried about their finances as they get wealthier. And few people get to do everything they would like to do no matter how much money they make. Time and health can limit us as much as a lack of money.

Nonetheless, if used properly money certainly can buy more security and more freedom, to the extent that those things are possible in this world. So lets look at how we can actually use money more effectively.

How do we actually achieve financial freedom?

This article is not about the "making money" part of the equation. That's covered in a thousand good books. Money does not bring the freedom automatically though, so this is about some of the problems we run into once we start making more, and what to do about them.

Freedom From Financial Worries?

First, if you want greater security you want it for the obvious reasons as well as to "feel" more secure. Setting up streams of investment income helps with the physical needs. Once you have enough income from enough sources you are free from needing a job. Of course that only happens if your lifestyle remains within the means of your income.

We often grow our lifestyles along with our rising incomes. This makes sense if you were eating cheap noodles and driving rusty old cars before. It resolves itself in time if income rises faster than the new expenses. But it's a lot easier to escape the "rat race" and relax with your investment income if your expenses are lower, so watch your changing habits.

If you notice that there seems to be no natural level of comfort where you are content, and that you just continue to "need" more as you make more, the problem might be one that requires some self-reflection and self-work rather than more money. Even millionaires go broke feeding their habits, tastes, and the needs of the ego.

Also, be aware that you can feel insecure no matter what your level of income. Often with more money you will feel more afraid of losing that money. The resolution to this is again not in money itself, which only buys the little bit of physical security available to us. To feel free of worry over money, you have to look beyond money to whatever psychological and spiritual practices help you.

Freedom To Do What You Want?

Money can buy a lot of freedom of choice in this world. With enough you can live how you choose, go where you like to, help who you want, and buy what you desire. But it only accomplishes these things if used properly.

Often people get so caught up in the process of making money that they forget why they wanted to make it in the first place. Meanwhile, they adopt a new lifestyle that eats up all the income which could have paid for their goals if they happened to remember them at some point. Some people really do want that big home and several new cars, but others just fall into that life as a consolation prize for a dream life they just couldn't figure out how to achieve.

If you want to travel the world, and for you that's what financial freedom means, you have to plan for that. You may even have to quit your job at some point if it gets in the way. And why not? If it is supposed to help you towards your goal, it better not do the opposite, right?

Whatever the term financial freedom means to you, think about it more specifically. Then start making plans. Money alone can come and go by the millions without offering freedom of any sort. You have to learn how to use it wisely rather than just chase it blindly.

Copyright Steve Gillman. Learn more about Financial Freedom, and get the free Money Matters Newsletter at: http://www.TheMeaningOfMoney.com

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Guide To Better Budgeting

A budget is basically a money plan, outlining your financial goals. Having a budget, you can well establish and regulate funds, set and achieve your financial objectives, and make advance decisions as to how you want your finances to function well for you.

The main idea in budgeting is for you to put aside a certain amount of money for expected as well as unexpected costs.

Simply put, budgeting means an estimation of monthly home expenses basing it on previous expenses and bills.

The initial step to take in budgeting is to find out how long will your compensation last. Define fixed expenses like car payments, home rental, insurance, etc. Likewise follow up your expenditures thoroughly for a month so you can discover and understand where your funds are going. Through proper determination of your “spending patterns”, you can immediately identify solutions for effective budgeting.

For instance, when you have a steady monthly income of $4,000, you should subtract all your identified monthly bills from that income.

Other bills can be assessed and then subtracted from the amount of your income. The balance that remained after fixed costs can now be your budget in the household. Rather than allocating money for miscellaneous like gas, clothing, entertainment and groceries, financial planning will allow you instead to use proportions or percentages of it.

The strategic solution in order for budgeting to be successful is inflexibility as well as flexibility; there are fixed expenses so payment must be an inflexible factor.

Budgeting will best work when very scarce omissions are made to greater limits. The idea here is to formulate goals and plans, then abide by it as much as you possibly can.

Here are tips on how to budget:

1. Have good sense of money management. Your attitude is essential. Reach an agreement and compromise and know the significance of reducing expenditures; it all involves a lot of sacrifice.

2. Plan your situation. Make a listing with your earnings to one side and your overheads on the other side.

3. Know the difference between luxuries and necessities. List down what you believe as luxuries, with it, split the list in half, crossing out half the list.

4. Practice frugality but with dignity. You can have fun with little or without spending at all. Rather than going shopping, play with the kids at the beach or at the park.

Budgeting is an effective and fundamental tool that is readily available to everyone. Consider it, and benefit from it.

Methods Of Saving Money

Saving is basically putting aside money or a way to utilize your present income for future use.

One saves for several reasons such as for a college education, buying a new car, for a new TV set you wish to acquire in three to four months time, for down payment on a home, or to provide for yourself when retirement comes.

As much as there are several reasons for saving, there are likewise many methods in which one can save. In most instances, the best method can be determined by whatever plans you have for the future.

1. Savings accounts. When saving for just a short period or for emergency purposes, consider opening a savings account passbook, as it is in this method that you can easily gain access to your funds.

Great for both long and short term savings, you can deposit and withdraw money to your account and earn interest, based on your average daily balance. A minimum balance is required to be maintained though, and you are charged with a penalty should you fail to maintain it.

2. Checking account with interest. Here one can benefit from checking account conveniences, while your deposits gain interests. Generally these types of accounts grants privileges such as limitless withdrawal and check writing, access to ATM and bill payments that can be done online.

This method typically requires a daily maintaining balance of at least $2,000.

3. Money market insured accounts. For long-termed goals, this method is ideal, as it generally offers a much higher rate of interest compared to a regular or standard savings account.

The interest rate usually is dependent on the amount of money in your bank account; larger balance means higher interest.

4. “CD” or Certificates of Deposit. This is a savings method requiring you to “loan” your money to your financial agency for a certain time frame, usually ranging from thirty days up to five years. Here, the longer the time span again, means higher interest.

Keep in mind that usually insurance companies offer better deals on interests compared to banks, so before you invest, compare rates first!

At certain times, when your goal is many years away, it can be a wiser decision to save money in a certain way that you are not drawn on using it other than the main reason for saving it. Deciding on the right financial agency such as a bank, credit union or insurance firm can bring about a lot of benefit in your finances.

Guideline Towards Much better Budgeting

A budget is basically a money strategy, setting out your finance targets. Having a spending plan, you are able to very well establish and control money, fixed as well as accomplish your own budget desired goals, and build enhanced judgements concerning the method that you would like your finances in order to operate very well to you.

An important suggestion in cash strategy might be that you choose put aside a quantity of cash to get estimated in addition to unexpected costs.

Simply put, cash strategy signifies an evaluation of monthly home expenses basing it on earlier expenses and bills.

The initial step for taking in budgeting is to find out just how long will your settlement last. Define fixed expenditures such as auto expenses, home leasing, insurance policy, etc. Similarly follow the expenses carefully for the month so that you can find out as well as know where your settlement is going. Due to correct determination within your “spending patterns”, you may immediately discover options for useful budgeting.

As an example, when you've got a stable every month income of $4,000, it's best to take away all your recognized every month bills from that earnings.

Other bills may be evaluated and then subtracted from the balance for your income. The total amount that remained just after set expenses can now be your spending budget in the household. Rather then allocating money for miscellaneous like fuel, outfits, leisure and food, personal planning will permit you instead to use proportions or percentages of it.

The proper resolution to ensure budgeting to be successful is inflexibility including flexibleness; there are actually fixed expenses so expense ought to be an inflexible thing.

Budgeting could ideal function when very rare omissions are created to increased limits. The idea here is to formulate goals and projects, then follow it as much as it is possible to.

Let us discuss how to budget:

1.Have sense of cash management. Your mindset is important. Reach a contract and give up and know the significance of bringing down expenditures; it all involves many sacrifice.

2.Plan your circumstances. Make a list together with your net income to one side and your overheads on the other side.

3.Understand the discrepancy between entertainment along with requirements. Take note what exactly you feel as luxuries, with it, divide the list in one half.

4.Perform frugality however with dignity. You might have fun with minimal or while not wasting in anyway. Instead of going shopping, have fun with the kids at the seaside or at the park.

Budgeting can be an efficient and fundamental system that is attainable to most people. Think of it, and make use of it.

Compromise with Teenagers

Nick wished for a skateboard but his mum said no.

Alan wanted a pair of world famous brand sneakers but his dad said no.

Marie desired a bigger allowance bit her parents said no.

Teenagers cannot comprehend why parents are so tight-fisted with money and parents cannot understand why children who already have it so good, keep wanting more and more.

These may be troublesome situations but parents and teenagers do not always have to quarrel over money. Compromises though domestic diplomacy can often lead to amicable solutions. It starts with both parties listening and talking to each other with good-feeling words to ease the spasms of discontent among teenagers.

Why not?
Money could be the major reasons why parents turn down a teenager’s request. Then again it may not be. Parents are usually guided by responsible stewardship over the long term.

Why money is just sufficient for the month then there can be no expensive purchases or increase in allowances. Parents scraping by on a tight budget will feel if they spend money, say, on an expensive pair of sneakers then they will have to cut back on some other goods. If their son really needs shoes he will of course be given a pair but not one which eats up a whole chunk of the family’s budget.

Some parents feel that they are spending so much on their teenager that does not need anything new at the moment.

But money is not always the reason parents say no. This is also sometimes done to inculcate certain values in their teenager, for example, thriftiness, living within one’s means, and the importance of not being materialistic or being a blind follower of the latest fad.

Safety could be another reason. For example, Nick’s mother may consider skateboarding to be far too dangerous a sport for her son. Parents do not want to see their kids get hurt unnecessarily or, worse still, break a bone.

If parents explain to kids the reasons for their objections, the kids may wind up agreeing with them or being grumpily mollified, or they may not, but at least they would know the reasons behind the rejection.

Reaching a Compromise
It is great for the parents if children finally agree that getting something expensive which they would soon outgrow would be “a waste of money” or that a particular sport could cause injury. However if the children still insist that the parents are being unreasonable, then parents should make an effort to see things from their teenagers’ point of view.

Teenagers may know that real friends should not care about what they wear but they cannot see the harm in following a fad if it is not too expensive or will no t hurt anybody.

Perhaps parents and children could lean to compromise, especially where the problem is money.

Advertisements

Make it a point to know the advertisements that come up when your child is watching her TV shows.

Never under estimate the power of the advertisement that appear on TV. Explain to her how the products are heavily hyped and that what she sees is not always what she will get.

Needs and wants

Explain the difference between wants and needs. For example, food, shelter, clothes, electricity and transportation belong to human needs category. Designer clothes or designer coffee and soft toys in the shape of popular cartoon characters qualify as “wants”.

Never forget that the kids will be watching their parents spend money on themselves. Make sure that you do not tell the pleading child, “You don’t need that” or “That’s a waste of money” and then go and buy yourself something which clearly falls under the “wants” category.
Let your child know that your first responsibility is to provide for the family’s needs. Only when the “needs” have been satisfied can the family think about spending on other things.

Savings Account

Open a personal savings account for your child. This will encourage her to save since she can see the money growing when the passbook is updated. Some children’s savings account give free gifts and club memberships to their young savers.

“Pay Yourself First”

Children should see their parents putting away some more money (i.e. pay yourself first) when they get the pay check every month. It is much easier to save at the beginning of the month than at the end of the month.

If the children see the parents doing so every month, they many think it is the norm and pick up the same savings habit when they get their own pay check.

Grocery Shopping

Take your child grocery shopping with you to let her have an idea of how much things cost. Explain to her why you choose certain brands over others. Teach the importance of looking at the cost per unit of an item rather the selling price of the item.

Explain to her the savings that can be made during bargains and the importance of having shopping list.

Household Expenses

When paying your monthly bills (be it for electricity, telephone or water) have your child around so that you can explain to her what each bill covers. This will make her aware of where the money goes each month.

Understanding how much it cost to keep her in the lifestyle that she is accustomed to may even see your child chipping in to cut down costs like switching off the fans lights when she leaves the room.

BUDGETING

Overspending is also part of the lesson about managing money. If it happens repeatedly, there would be a need to find out why it happens. Where did your child blow their allowance? Does she know where it went? If not, this may be a good time to suggest keeping a simple record of her allowance. This is where budgeting comes in.

Budgeting will help her trace how she spent her money and determine whether the expenses are necessary or can be cut down

How soon, How much and How often.

How soon?
Your child is probably ready for an allowance when she enters primary school. She should be old enough to handle money to buy food at the canteen.

How much?
How much money your child is entitled to will depend on how much you can afford and how much food in the canteen costs. You may also want to have an idea of how much pocket money her classmates are getting.

Parents and child should agree on just what the pocket money is supposed to be spent on. Even if it is only to be spent on food in canteen, give a little above so that your child can practice decision-making.

As adults, we make spending choices and not all of our choices turn out to be right ones. Learning to live with the results of poor choice in spending money is valuable lesson, so let children make mistakes and learn from their mistakes.

How often?
At the beginning the pocket money can be paid daily since your child is young and is not used to handling money. But as your child grows up the allowance can be paid weekly and when she reaches her late teens it can be paid monthly.

The longer your child has to wait for the next payment of pocket money, the more she has to practise her budgeting skills.

Why Allowances?

An allowance can be a good teacher because it allows children to manage money in a safe environment. The sum involved is small and any mistakes made will not be too damaging. It is not like when they are adults and the mistakes made can cause them to lose their house or car.

Allowances can teach them financial responsibility. For example, when your child wants to buy a new toy, she can be asked to save part of her pocket money to get it.

Depending on the age of your child, she may need help to achieve her goal (i.e., the toy). This gives you an opportunity to help her develop a spending and savings plan so that she will know how much and how long she has to save to buy her toy.

Saving for a toy will teach your child about delayed gratification. A child who has enjoyed the fruits of saving up for a toy may be less likelyto be taken in later by the various choices of instant gratification like credit cards, easy payment and hire purchase payments.

Thus allowances give children a chance to make mistakes that are not too costly, to think about the value of what they want, to experience anticipation if they save for a few week and even to feel the consequences of overspending.

Do not make a practice of giving additional money if your child overspends. If parent is quick to bail out the child, the child will not learn the consequences of overspending.

Should your child overspend, she will then have to get a loan from you to meet her expenses. Set up repayment period to give her some practical experience in using credit.

But if your child keeps overspending it should be time to put her on a simple budget.