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Man's hand putting money in piggy-bank, next to the pen and calculator. Money saving and family budget concept
The modern era has created so much to offer. Technological developments bring newer, better concepts. Society determines the success of a person by their ability to spend less than they can earn. By doing so, a person has stability and confidence that is effective in handling emergencies. They are also in a better position to assist others. 

Stress-free budgeting won’t exempt you from life’s challenges. However, it will allow you to better care for yourself and family which provides stability and ease. Saving money is, by far, the smartest thing you can ever do. Making effective, habitual changes enables anyone to enjoy a higher level of economic independence. It is hard to achieve, but not impossible. 

Stress-free budgeting requires an understanding of seven concepts that must be understood in order to tackle one of the most common reasons for financial turmoil… extravagant spending. Below are 7 valuable tips for better money management, leading to a life with less stress and more financial freedom. 


7 Tips For Effective And Stress-Free Budgeting

  1. Set a Target

Before making a change, one needs to realize and accept the fact that there is a problem. Only then will you be able to tackle issues without further aggravating a delicate situation. The aim should be to create a budget that is reflective of your essential needs. It will also give you a better picture of what you need over a specific period of time and, with effective disclosure, shed light on where it went wrong.

 

  1. Weekly Observation Of Spending Habits

This can tell you a lot about what is happening to your money. Observing weekly transactions will reveal much about small purchases that add up to a good amount.  Those small amounts weigh heavily when it is totaled up in your budget at the end of the week. We recommend observing your spending habits so that real-time information and facts are laid out for self-realization.

  1. Estimate Your Expected Earnings And Expenses

This estimation gives you an idea of what is coming in and what is going out. For example, mortgage, tuition, utilities, credit card bills and any other expense should be allocated.  These should all be listed which will enable you to make it as effective as possible. Mandatory expenses need to be taken care of first as these are critical categories in stress-free budgeting. Items such as clothing, gadgets, equipment, and entertainment can create stressful situations. These discretionary expenses identified, along with how you are earning, so that you can determine whether or not your are overspending in these categories. This will be very effective in giving you a clear picture.

  1. Plastic or Cash?

Paying cash for transactions is the easiest way to get lost with your budget. Using credit or debit cards allows you to easily monitor your expenses because all of the payments are billed and recorded.  Paying with a card is going to greatly help your stress-free budgeting by showing you how and where you spend your money. Also, using credit cards has benefits and rewards, which is another perk if you are careful. If you prefer not to use credit, debit cards are effective and an equally suitable alternative. 

  1. Save, Save, Save

That’s the motto in the world of personal budgeting. This is also our goal and should be focused on excessively. With a budget, you can precisely comprehend how much you have earned and how much you need to spend and save. We highly recommend that you start saving money immediately during the course of your stress-free budgeting and then spend the remainder by allocating money to your respective categories that are mandatory. Using this effective method, you won’t be able to overspend and can enforce saving. You should be putting money into your savings before using any money on luxury expenses.

  1. 50/20/30 Scheme

Senator Elizabeth Warren, in her book “All Your Worth”, promoted this method. It is quite beneficial due to its straightforwardness. According to this plan, 50% of all income is allocated to requirements, 20% is reserved for savings and 30% is allotted to lifestyle preferences. Facing difficulty? Trying this simple plan is duly advised.

  1. Use Schedules And Other Relevant Tools

The beauty of stress-free budgeting these days is the vast amount of of tools that are available to assist you in everyday expenditures. Also, there is no single tool that universally works for everyone. Due to each individual’s situation, it varies vastly. For some, scheduling and daily monitoring are sufficient, while others may require a range of budgeting applications connected to personal bank accounts that utilize smart technology.

Check out America's Best Bookkeepers
About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual accounting, providing services to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud-hosted desktop where their entire team and tax accountant may access the QuickBooks file and critical financial documents in an efficient and secure environment. Complete Controller’s team of  US based accounting professionals are certified QuickBooksTMProAdvisor’s providing bookkeeping and controller services including training, full or partial-service bookkeeping, cash-flow management, budgeting and forecasting, vendor and receivables management, process and controls advisement, and customized reporting. Offering flat rate pricing, Complete Controller is the most cost effective expert accounting solution for business, family office, trusts, and households of any size or complexity.

 

Man using calculator and calculate bills in home office.
When you are planning to save money, you will have to account for all of the transactions and circumstances that currently concern your life. Learning how to save and manage your money at a young age will equip you with the skills to budget your money at any age. When you are young, there aren’t any strings attached, which gives you the liberty to experiment and come up with a plan to budget for your expenses. 

Making smart money moves will ensure that your financial health stays in balance and you have enough set aside for unforeseen situations. 


Budgeting your Money at any Age – The 20’s

The 20’s is a transitional period for students, as they are moving on into their salaried life. For 7 out of 10 students, the average college debt amounted to $30,000 in 2017. Paying off this debt will most likely take years and a highly robust budget management. While budgeting, you must ensure to account for the loans and put aside enough money to pay them off as early as possible. Budgeting for your rent and other living expenses, along with the debt, takes serious effort and money management skills.

Cut back on Non-Essentials

Budgeting your money at any age requires you to make a realistic budget which takes into account even the smallest of expenses. Write everything down in a journal or use a mobile application to keep track of your daily expenditures. Before you can actually start creating a budget, you will need sufficient data from your daily expenditures. Once you have data to explain your spending behaviors, it will be easier for you to set limits on some of the items that are related to entertainment, clothing and other luxury items. These are counted as non-essentials and, once you are accustomed to living without them, you will not even feel the difference, however, it will significantly cut down on your costs.

A 50/30/20 rule is often a good way to manage your expenses. 50% of the money should go to essentials, 30% can be allocated to your wants, while the remaining can be put aside as savings to pay off debt or any other purposes.

Get a Savings Account

Planning to get your own car or a house may require you to save a lot more than 20% of your income and may also require getting a savings account. Forget about the money you put aside into this account and only resort to it according to the plan. Find a savings account that offers a higher interest rate.

Budgeting your Money at any Age – The 30’s

Ideally, once you are in your 30’s, you will have adopted healthy budgeting habits and there will be no more issues related to late payments, unnecessary credit card usage and keeping track of your expenses. This is a career transition phase and there is a high probability that you could get married and have a family. If so, managing your finances becomes even more significant.

Open a Retirement Account

Amidst all the money management paradigm, you must start making contributions to your retirement account. The IRS retirement account is a great option in the case that you do not have an employer-sponsored retirement account. This is one of the most critical times in budgeting your money. Setting up a retirement account at this age will ensure that you put enough into it for a better future down the road.

Emergency Fund

This is something that you should pick up in your late 20’s and carry it forward into your 30’s. You never know how things could turn out, so it is better to be prepared rather than sorry. In case you have not saved up for an emergency fund, you may end up dipping into your retirement account or maxing out your credit cards, which we assume you would clearly not find desirable.

Budgeting your Money at any Age – The 40’s

Whether you have settled into your family life or are still passionately pursuing a career, the 40’s is the best time to lean towards investing money and generating income. This will ensure that you are generating enough side income to pay for luxury goods and fulfill your desires. Making smart investments is key and you should never put all your eggs in one basket.

Generate Alternate Incomes

Even if you are happy with your career advancements and saving enough money for bad times, we suggest that you invest your money into stocks, real estate, trading or any field that is related to your expertise. It will allow for you to maintain a healthy family life while catering to all of your additional expenses. Both your short and long-term goals can be achieved quite early, given that you make smart investment decisions. The best strategy is to diversify your investment portfolio to minimize the risk and avail all of the benefits of budgeting your money.

Revise the Budget

Your saving and spending goals need to be revised amidst growing expenses as you may have a family to look after now as well as life insurance, medical bills and paying off tuition fees.  This can be an arduous task if you fail to make necessary budget amendments.

Budgeting your Money at any Age – The 50’s and Retirement

Now that, hopefully, all debts are paid off and there are no more tuition bills remaining, you can shift your focus towards retirement. Get a hold of your finances and plan exactly for how many more years you want to work and get into some real investments in the areas you have benefited the most from your recent experiences.

Reconsider your Choices

This is the time when you should really start doing what you wanted throughout your life but have been unable to do. For example, if you wanted to travel and couldn’t, you could plan a trip. Make some adjustments in your lifestyle to account for the travel expenses, as we expect you to be a pro at budgeting your money by this age.

Consult a Retirement Planner

Though you have learned to manage your own money by now, it can still prove beneficial to have a second opinion. Consult with a retirement professional and discuss your investment decisions and options. You might be missing out on something which could dramatically increase the return on your investments.

Following the above mentioned budgeting tips will ensure that you retire with grace and freedom.

Check out America's Best Bookkeepers
About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual accounting, providing services to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud-hosted desktop where their entire team and tax accountant may access the QuickBooks file and critical financial documents in an efficient and secure environment. Complete Controller’s team of  US based accounting professionals are certified QuickBooksTMProAdvisor’s providing bookkeeping and controller services including training, full or partial-service bookkeeping, cash-flow management, budgeting and forecasting, vendor and receivables management, process and controls advisement, and customized reporting. Offering flat rate pricing, Complete Controller is the most cost effective expert accounting solution for business, family office, trusts, and households of any size or complexity.

 

 

 

 

Finance and Investment concept.Money management and Financial chart.Double exposure investment
Have you ever wondered how a successful business establishment works? How did it start? How it managed to establish itself into the market of imperfect competition? In order to establish an organization in a perfect order, where it produces goods and services at minimum cost, numerous techniques are used. One of the most common and contemporary techniques used to drive financial management of a company is budgeting which ultimately requires bookkeeping. Bookkeeping allows the record keeping of all transactions which have taken place or are planned by stakeholders in an organization. Following are certain bookkeeping techniques used in budgeting, which further leads to marvelous consequences.

Sketch an Outline of Top-Tier Expenses

Top-tier expenses are the ones which are not necessarily planned. They can even be accidental but, once they appear, they can cause hazardous damages to the business. Therefore, an entrepreneur must take care of such expenses by allotting a certain amount of the budget to this section in a strategic plan. Previous experience and identifying loopholes through records can help in planning such expenses.

Installation of Bookkeeping Software

Bookkeeping is itself a hectic task which requires financial experts for its completion, but in order to avoid any mistakes, several bookkeeping software have been designed by engineers to make this task easier and error free. Some of these software are the following:

  1. QuickBooks
  2. GnuCash
  3. Moneydance
  4.  Quicken

These software are user-friendly and easily operated, but still business owners are advised to keep financial experts who have complete knowledge of terminologies for data entry to avoid any haphazard or error in the results.

Taxes should not be Ignored

Business owners should be vigilant about their paid taxes as well as the upcoming ones. Financial experts and bookkeepers, while planning a budget, must allot a particular amount of funds available for paying future taxes (the taxes can be allotted depending upon the previous taxes paid).


Advantages of Effective Bookkeeping

Ensures Economic and Financial Health of an Organization

Finance plays an optimistic role in terms of providing a strong backbone to an organization. It helps in ensuring its economic and financial health as it tends to provide optimal allotting of all funds a company has to operate its strategic plan. In order to sustain the stance of a business inclusive of its targeted operations, its sound financial health is of substantial significance which is acquired through smart budgeting. Therefore, entrepreneurs are advised to be vigilant while planning the budget for their business organization.

Identifies Major Apertures of an Organization

Budgeting is considered to be one of the most important pillars of an organization as it provides a bigger picture of what has happened or what is going to happen in the future. It identifies major apertures or errors made in the past while dealing with the finances of an office, ultimately enabling business owners to make future decisions in a better manner. This helps in making business operations smooth, with less obstacles.

Final Note

Effective budgeting leads to the successful running of an office. It allows financial experts to look into the major apertures that took place in the past. These major apertures, once identified, can help business owners to be efficient when making future decisions. Moreover, it generates marvelous advantages in terms of a bigger picture portraying all projects of an organization. Budgeting is interrelated to that of bookkeeping, which in reality is the phenomenon or mega concept to achieve perks of effective budgeting.

Check out America's Best Bookkeepers
About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual accounting, providing services to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud-hosted desktop where their entire team and tax accountant may access the QuickBooks file and critical financial documents in an efficient and secure environment. Complete Controller’s team of  US based accounting professionals are certified QuickBooksTMProAdvisor’s providing bookkeeping and controller services including training, full or partial-service bookkeeping, cash-flow management, budgeting and forecasting, vendor and receivables management, process and controls advisement, and customized reporting. Offering flat rate pricing, Complete Controller is the most cost effective expert accounting solution for business, family office, trusts, and households of any size or complexity.