Have you ever had an argument with your partner about money? Has he or she spent more than they should? Have you over-spent and tried to cover it up to avoid a fight? I have developed a system to stop the arguments over money. I have been married for nearly 14 years and we never ever fight about money.

I will provide some simple steps for you to take to stop the arguments over money permanently but before I get to that I will make a disclaimer. If you are deep in financial trouble, go and seek professional help immediately. And for everyone, I don’t know your personal situation so seek advice from your bank or financial advisor before doing anything. This article is education and should not be considered advice.

What causes fights over money anyway? Is it the lack of money? Perhaps if you just make more money, then the arguments will go away? I believe that this is never the case. In business, clubs, churches, community groups and even government there are always arguments over the allocation of money. Bringing in more money might fix things in the short-term but once your lifestyle adapts to the new income level, the same issues will arise.

There must be a way to allocate money so that money is set aside for those things that are important but not so that you have to walk around with a check-list on how much you have spent. Of course I am talking about a budget but don’t switch off just yet! there are two fundamental kinds of budgeting:
(1) Accounting for what you spent
(2) Providing for what you need in future.

The most common form of budgeting is accounting for what you have spent. To me, this is like driving your car along the road only using your rear view mirror. Every time you see that the car has hit the dirt, you start adjusting the steering wheel to get back on track. Analogies aside, 1-2% of analytical people and accountants love this style of budgeting and no one else can stand it!

The other form of budgeting is implemented by larger organizations where they make provisions for future expenses. I am not talking about accounting tricks to save money on tax either. I mean that cash is deliberately set aside in a bank account to be used at a later date, for a specific purpose.

So how do I implement a forward-looking budget that provides for future needs and will stop arguments about money at home?

Firstly, I accepted the fact that both my partner and I must have a certain amount of “mad money” that is not accountable at all. We both have our own separate card account that is our own responsibility respectively. This might be ten dollars a week or it might be a hundred – that will depend on one’s circumstances but the amount is regular and agreed to by both of us. No one should have to account down to what one did with a few dollars of change in your pocket.

Secondly, there might be regular things like purchase of food and is common sense that this would be the responsibility of one partner or the other and this would go into their card account as well. In our case, my wife is responsible for groceries, so that goes to her account. I pay for the children’s sport from my card account.

Thirdly, there are regular expenses such as electricity, telephones and utility expenses. It may include rent or loan payments. Consider the bank fees and charges before taking the next step and shop around if possible but pay for all of these regular expenses out of a clearing account. I use a no fee, high interest bank account for this purpose. I call this a clearing account and that is where my pay goes (not my card account).

Finally, I use about 10 no fee, high interest bank accounts for other savings goals (or provision accounts). I transfer regular amounts from my clearing account into these Let me tell you about some of them. As an example I will also show how much I put aside each 2-weeks into these accounts and the annual goal.
Holiday Account – $40 x 26 = $1040
Car Registration and repair – $57 x 26 = $1500
“New Car Account” – $40 x 26 = $1040
Electrical, computers etc $20 x 26 = $520

The list goes on. I also have accounts saving towards a new home, gym fees and so on. I have a separate account for our investment property, with sufficient funds to provide for minor repairs and unexpected property expenses. The total above is $4100 and with a quick bit of math, the average balance would be $2050. At 7%, that is $143 of interest to me as a reward for setting aside the money that I am going to spend anyway.

Why does this work for me? It still takes negotiation to decide how much to put aside for holidays and so on but once I set up the payments I found that I have always had the money set aside for the regular bills. After Christmas, I had no credit card debt at all because our family didn’t over-spend on what was set aside in a separate account. Right now, it is a little tough for us with unexpected medical bills coming in. I am negotiating with my partner where this money will come from.

When I go to the automatic teller (or use internet banking) I can see how much is in my card account and I know that I can spend it guilt free and consequence free. I know not to go over the amount in my card account. So if I want to take the family on a treat, then I know how much is available and so I can choose accordingly.

In a sense, I guess, I have turned the banking system around to do my budgeting for me. After all, isn’t that what technology is meant to do for me?

Visit GlenTheGoalsGuy or
Bill Banisher

Sit amongst a group of friends and associates and mention the word budget, and suddenly everyone has somewhere else they need to be. Usually no one wants to talk about budgets, no one wants to think about budgets, and no one wants to follow a budget. However, when looked at with open eyes a budget is actually a fantastic thing. Here are three reasons why budget may become your favorite word:

Reason #1: A budget puts you in control of your money instead of your money controlling you. What did you spend your last $100 on? You may not remember. Maybe it was a pizza, or stickers for your children, maybe it went to piano lessons or a new pair of boots. The point is, many people have no idea where their money goes. When you set, and follow, a realistic budget your cash is freed up so you can spend your money on things that are important to you and your family rather than spending it on purchases you won’t remember buying ten minutes later.

Reason #2: A budget can improve your relationships. There’s little worse than the stress money can cause. Debt causes tremendous stress and so does the fear that you won’t be able to pay your bills. It can ruin your health and it can destroy relationships. When you form a financial plan with your family you work together as a team to reach your goals. The lines of communication are opened and the stress is eliminated because you have a plan and a team of support. Additionally, when you’re all on the same page financially there are no arguments about money, which makes better relationships with your spouse and your children.

Reason #3: Most people would agree that it is better to live within your means than to get into debt. However, some people don’t realize they’re living beyond their means until it is too late and the debt has become overwhelming and stressful. A sound budget keeps you living within your means and prevents or eliminates debt. A structured and realistic budget prevents the ‘Oops I spent too much on my credit card this month’ mistake that we often make month after month until we’re paying more on our minimum balance than on our mortgage. If this applies to you, don’t let it get to this point. Take advantage of the power of a budget and gain control over your financial life.

There is absolutely no downside to forming a budget and we’ve only scratched the surface of the benefits they provide. Take a few minutes to realistically analyze your spending habits, your income, and your financial goals. I promise you’ll be glad you did.

Eddie Lamb owns LiveMortgageFree.com a website devoted to helping homeowners, first time buyers or tenants. You’ll get your own exclusive access to the program and bonuses that will get you on the road to living Mortgage Free and will change the way you view money forever. For more information visit: LiveMortgageFree

Debt cure has always been an issue. Today however, the amount of debt Americans are racking up is astronomical in a way that far surpasses any other time in history. Our national debt is in the trillions, and it looks to be seriously doubtful that we will ever get out of doubt as a nation. What is worse however, is the critical amount of debt that individual Americans are in. We are talking billions of dollars. Debt that is crushing thousands upon thousands of our families, leaving them in bankruptcy, and to the poor house!

One thing you should watch out for, are the companies, and so called experts who are promising so called secret debt remedies, in exchange for a high price tag that is only going to put their customers in more debt. With that being said, here are some proven steps you need to take in order to get yourself out of debt, and on your way to financial freedom.

First, quit taking on new debt. You need to make a decision right now to quit taking on any extra monthly expendetures. One of the main reasons so many Americans are in deep debt is because of our extravagant life styles. There is nothing wrong with having nice stuff, if you can afford it. But if you honestly cannot afford to live like a celebrity, do not charge it so you can! The first thing you have to do in order to start climbing out of the pit, is make a commitment to live a simpler life. Start by figuring up how much money absolutely has to go out each month. This would include things like food, rent, utilities, gas, insurance, and the like. Take a simple inventory of what you must have, and write it all down.

Next, add up the amount of income you are currently able to bring in every month. Most anyone will be able to cover their basic bills with a regular 40 hour per week job. If you make enough to pay your necessary bills, then great. If not, its time to simplify even more. Get a room mate who will split the cost of living with you, in order for you to have a bit of extra income each month.

After you have simplified your life, and calculated the amount of extra money you have left over each month its time for step two, which would be finding your smallest debt to pay off. No matter how small it may be, knock it off the list. If you have only a hundred dollars on a credit card, then your first goal is to pay it off completely, while making minimum payments on your other bills. The only way to eat an elephant is one bite at a time, so start here. After it has been paid off, cut it up, and look for your next smallest amount of debt to attack, and determine the maximum amount you are able to pay on it each month until it is also gone. Repeat this process over and over.

The next thing you should do, is invest. I know you are probably thinking it is crazy for you to invest when you have more bills to pay, but remember you life is simple now, and you do not currently waste money on things like cable, internet, subscriptions to magazines, and other junk you were before. What kind of investment am I talking about? An investment in you. You need to learn a new skill that will allow you to increase your earning power. If you only have one hundred dollars to invest, then go buy a power washer or another tool that will enable you to earn extra money on the side. You can charge seventy five dollars to use your power washer a few times each week, and make good extra money that will go toward paying off more debt.

If you can, invest in some education that will allow you work with your brain instead of your back. This is imperitive to accomplishing your goal because if there is one principle you must know, it is that there simply are not enough hours in a day to become rich. There are only two ways to make money. You can trade a service for dollars, or you can trade hours for dollars. I am willing to bet you can only trade sixty hours or so each week, and unless you are making over twenty dollars an hour, you will never get ahead.

Learn a trade, or something you can exchange other than your hours for dollars. Reaching this goal will be the best debt cure you implement because truly time is money. Make it your goal to simplify your life, and create more time for yourself to gain more earning power.

So to recap, the first thing you need to do is commit to take on no more debt. The next thing you need to do, is figure up how much you absolutely must spend to stay afloat each month, and how much you are bringing in. Next you are going to determine what you smallest amount of debt is, and attack it full on, while making minimum payments on your other debt. Pay them off one by one, it may take time, but you will be freeing yourself from it, and building credit at the same time. Lastly, you are going to invest in yourself each month. You will do this by investing into a tool, or knowledge for the ultimate goal of transfering your life from an hours for dollars type of arrangement, to a service for dollars type of arrangement. The more knowledge, and the more tools you gain, the faster this will happen. Once it does happen, you will have more time to leverage your earning muscles, and pay off even more debt.

It is not flashy, but it will work. Hard work, and wise planning are always a safe bet. If you apply these simple steps, and have someone keep you accountable to doing them, you will be out from the oppression of the collectors, and on your way to financial freedom.

The author of this article is the owner of the truth about debt cures and offers more helpful tips on getting out of debt to hundreds of people per day.

Mortgage refinancing is a good move in most cases and can be very beneficial for the home owner. On the other hand, mortgage refinancing can go wrong and the reality is you might end up with a new agreement that is worse then the previous one.

You need to understand when and how to properly concider any type of refinancing. We all want to save money and lower insterest rates, but losing money through a bad deal can be avoided with proper understanding of basic terms and a little research.

We are usually faced with mortgage refinancing gone wrong when there are wrong calculations when switching interest rates. When an individual decides to refinance a mortgage they do so because the market is showing lower interest rates than when compared to the ones linked to the current mortgage. You must not start mortgage refinancing just because you notice lower interest rates.

In most cases, in order to be successful, the interest rates available need to be 2 percent or more lower than the your current morgage. There are also fees that are activated in the event of different situations. Most mortgage loans will have such fees linked to paying off the entire contract in the event of mortgage refinancing. When we see that the money gained from mortgage refinancing is lower than the fees paid we are faced with “mortgage refinancing gone wrong”.

Many individuals forget to calculate the taxes that need to be paid. When switching to a new mortgage via refinancing we are faced with lower interest rates; Therefore, lower amount of the interest will be deducted from tax.

This leads us to a higher amount to be paid in taxes and thus adds to the above mentioned elements that are to be subtracted from the savings made through mortgage refinancing. While most individuals are aware of the risks linked directly with interest rates, few know about the tax related problems. This is another common reason why we notice mortgage refinancing gone wrong.

When individuals are faced with problems in their life, the human mind tends to not think properly and action is based in instinct. You can thus notice a great mortgage refinancing option that looks suitable for your personal needs but because you are blinded by need, you may neglect different aspects. This leads us to balloon mortgages, another popular reason for mortgage refinancing gone wrong cases. These mortgages seem very good because what you actually pay each month stands in only the interest or the interest plus a small amount of the principle.

This means that the monthly payments will be a lot lower than what you are paying now, but you might be hit with the need to pay the entire principle or a huge percentage of it at the end in one payment. These offers look like an advantage because most people think that the lower monthly payments will lead them to saving money that can be invested and thus the principle payment will be easy to pay due to the long terms of the loan. It is highly risky to think this way and you never know what the result will be. You might be faced with mortgage refinancing gone wrong once you realize that you can not payback the principle and you are hit with loosing your home.

If properly analyzed, mortgage refinancing can not go wrong. Unfortunately, some people will not look at the problem seriously and they are actually gambling with the biggest asset they own: their home.

Ryan Kaufman is an author and internet marketer. He frequently writes about the finance and mortgage industry. More finance info can be found at www.mydebtrefinancing.com

Many excellent articles have been written offering useful, innovative tips on ways to save money. We’d like to take a different approach. Let’s look at what we call the “philosophy of frugal living.”

Don’t confuse “frugal” with “stingy”. What’s the difference? If you’re being frugal, you make use of the coupon in your Entertainment Book when dining out If you’re being stingy, you use the coupon as an excuse to under-tip the waiter. Being frugal is finding ways to save money where everyone benefits. Being stingy saves money at the expense of someone else.

Don’t make a budget and attempt to live on it! Instead, observe your spending habits over the course of a month and notice where your money goes and how the process feels to you. Are you spending a lot of money on something that you actually couldn’t care less about? Maybe you reflexively shop for a new outfit every Saturday. If you really love clothes, that might be exactly right for you. However, if what you really love is live theatre, your money would probably be better spent on show tickets and maybe even acting classes.

The point here is to pay attention to yourself and honor your own priorities rather than spending your money the way “everybody else” does. Some friends recently decided to spend a year traveling around the world. Needless to say, their travel expenses for that year were out of sight. However, they had no expenses for clothing (no job – hence no work wardrobe), Christmas presents or cards (an e-mail from Fiji to family and friends was as far as they went), or entertainment (finding themselves in a different country every few weeks proved to be plenty of entertainment).

Don’t buy what you can barter. As a young mother, I belonged to a baby-sitting coop. Members accrued “credits” by babysitting for other members. They could then spend their credits when they needed childcare. It was a terrific money-saving arrangement. More than that, though, it built a strong community with lasting ties between the families. Let yourself think creatively. If you love to decorate, cook, do photography, repair computers or do “handyman” jobs; you undoubtedly have neighbors who could use your services. See what they might like to offer you in return. You’ll be saving money and building friendships while doing what you enjoy.

Remember – generosity conquers fear. Often we focus on saving money because we’re afraid. We’re ruled by a model of scarcity rather than abundance. When you act with generosity, however, you master your fearfulness. Give a quarter to the homeless person, offer to help your neighbor move, bake that cake your husband loves that takes all day to make, smile at the grocery clerk (really, she’s going as fast as she can). Not only will you feel richer, you’ll find that it actually is true “cast your bread upon the waters and it will come back to you ten-fold.”

Peter Cole ChFC, LCSW, Holistic financial planning. Author: True Self True Wealth. Peter Cole is a representative of Securities America, a registered Broker/Dealer member NASD/SIPC and Securities America Advisors an SEC registered investment advisor. FREE newsletter at http://www.trueselftruewealth.com

Financial management is one of the biggest pitfalls for people who are actively engaged in a serious home business. Even if your have chose a good home business you may have no idea on how to manage your business financially, you will most likely end up losing a lot of money. Since you cannot afford to waste your money, you better shape up and take care of your finances early on. It will not really do you any good if you just keep working on your business not really knowing if you are making enough money to compensate for your efforts.

Getting started

The first thing that you need to do to get your financial systems in place is to open a separate bank account for your business. A lot of home business owners keep their personal funds together with their personal accounts that they end up drawing money, which should have been for the business and vice versa. The practice of mixing up your personal funds and the funds for your business is very dangerous because you will not have much control over you business and personal finances. By opening separate bank accounts for your business and for personal use, you will be able to manage your money better.

Aside from setting up a separate bank account for you business, you must see to it that you also set up a separate funds for your business expenses. Since you are working form home, try to separate all the expenses that are related to your business from your home expenses. For instance, your business phone should be paid by money coming from your business account. You might also want to bill your business for utilities and rent. You can do this by setting a certain amount every month for utilities and rent then take this amount from the business account.

Out of your business earning, you might also want to set up a certain amount, which you can draw out as your salary. The good thing about setting a certain amount of money every month as your salary is that you will be able to determine if you are indeed making enough money to pay for all your business expenses and at the same time pay yourself for your efforts. Make sure that you only draw-out the extract amount of money from the business for your salary. Even if your business is doing well and you have plenty of money in the business account, do not be tempted to draw more than you should. Keep the money in the business account for future use. You might want to expand your home business later on.

At the end of the year, you might want to give yourself a bonus. If you have been religiously following your own rules regarding your finances, you will be surprised at how much money you will have left in your business account at the end of the year.

Scott Young Is A Plug In Profit Site member As Well As An Authority On Developing Serious Home Based Businesses. Get more Information On How To Build Your Own Serious Home Business. For Internet Business Ideas To Make Money Online, Visit:
Serious Home Business Ideas and Opportunities.

Why a Budget is Important. Let it be your guide from beginning to end.

Starting your own home business is a very tricky proposition. Starting your own enterprise is exciting, but it is also inherently full of risk. Enter discipline. Unless you get yourself going on the right foot, then the chances of achieving success are very small.

Conversely, as long as you have the right foundation, and keep working on that foundation, success is almost an automatic thing. It is vital that you run your home business on a strict budget, if you aspire for long term success. Strictly budget your time and your money.

As little as one hour a day, everyday, is enough to make your personal business get better everyday and grow steadily to keep your confidence up. Avoid distractions.

One of the most important parts of running your business is operating on a budget of money and time. Every ad and every supply and tool you buy must earn the value put into it. This is a golden rule that can make you successful as you are going to be at any business.

Many men and women, mostly unsuccessful ones, prefer going with the flow rather than with actually setting goals and budgets. For the most part, this attitude is a mistake. Unless you have an incredible memory and unnatural clear sightedness, planning for both the present and the future is a prerequisite to success.

No matter how you define that elusive concept. Remember, no sloppy ad, supply or equipment buys. Check everything out scrupulously before putting your hard earned funds into it. Always shop for better prices and quality with every purchase you make.

Because this article is about home businesses, we will begin by defining success as the growth and eventual profitability of your particular business. By growth we mean that the business will expand, hopefully outgrowing your home and eventually participating in the corporate arena or whichever one you feel comfortable to work in.

By profitability, we mean that the business will become a cash generating machine, so much so that you attain financial freedom, and never have to work a single day again for someone else, if you do not feel like it. You will be your own woman or man.

This article argues that in order to achieve growth and profitability, discipline is needed, and plans must be made and acted upon. I cannot harp on and emphasize this enough to you.

Crafting your budget

One of the most important plans you must conceptualize is that of your budget. Many businesses, even if they have great ideas and wonderful products, still fail for lack of proper planning and efficient allocation of resources. Do not let this happen to you. Only a home business on a strict budget can ever be truly successful.

First, make it a habit to write down, both what you earn and what you spend, on a daily, monthly, and yearly basis. A common stenographer notebook will be perfect for this. Make a different page for every expense. Every expense and every sale must be recorded so you know where you are everyday.This is the least that you can do.

Look over what you have written down and you will easily see the areas that can be improved upon, especially in the expense column. It is astonishing how many expenses we never notice until we get them down in paper. As the business grows larger, accounting knowledge might be needed. If you have neither the time nor the inclination to acquire the knowledge yourself, find someone who does.

Second, analyze the figures and determine the areas where you can control costs, and where you should add capital. Every business has areas that generate above average returns, as well as areas that under perform. As much as possible, redirect your resources to the projects and ideas that give you the most return. You will quickly start to learn this from experience.

Many years of experience have frequently given me the positive experience of having the lowest cost item or ad working for me best.

The great secret here is to, are you ready? Shop around for the best buy and do not let your emotions run wild on you when you read or hear presentations that have wild claims or will not give you the whole detail story until you pay them first. Hah! Never do it. Give me the details or forget about it. You do not need to take unnecessary risks.

Lastly, stick to your budget. Never forget this. A plan not acted upon is essentially useless, and a budget not followed is as useful as a page of doodles. Once you have written down and finalized your budget, do not make any departures from it unless absolutely necessary. Always have a solid reason for doing so.

Be disciplined. It is the only way you will get anywhere. By running your home business on a focused budget, you are securing your future at a small expense to the present and a nice profit in the future.

James M. Lowe writes original articles about home business opportunities.