Our deepest fear is not that we are inadequate.
Our deepest fear is that we are powerful beyond measure.
It is our light, not our darkness that most frightens us.
Your playing small does not serve the world
Here are some simple and often surprising tricks that research shows can extend your life..
1 Switch your latte for a cuppa
2 Balance on one leg every morning 3 Have regular sex at least twice a week 4 Eat three walnuts a day 5 Use less sunscreen but don’t burn 6 Make six good mates you can always rely on 7 Stop eating when you’re 80% full 8 Go to bed one hour earlier if you can 9 Make sure you floss every night 10 Be a details person11 Buy yourself a pet, and preferably a dog 12 Don’t put fruit in the fridge 13 Be helpful and lend a hand to others 14 Sing a tune in the shower 15 Eat twice as much fruit and veg 16 Try to stop moaning so much! 17 Drink plenty of apple juice 18 Draw your family tree and learn your history 19 Watch an hour less TV a night 20 Make sure you never skip a screening 21 Measure your waist – not your weight 22 Get hitched – it’s good for your health 23 Laugh at least 20 times a day 24 Give up smoking 25 Try to believe... in something
Tea is packed with antioxidants called polyphenols that can help your body fight heart disease, cancer and premature ageing. One Israeli study found that moderate tea drinkers lived substantially longer than those who don’t have a regular cuppa. But
remember to give it a good stir before removing the tea bag, as
research shows this releases 15% more of the age-resisting ingredients.
It
may sound strange, but standing on alternative legs while you dress in
the morning forces your body to balance, strengthening your ‘core’
(back, pelvic and stomach) muscles which support your spine. According
to physiotherapist Tom Salzman: “This simple daily act will offer
significant long-term benefits when it comes to staying active for
longer and protecting against falls and broken bones as you get older.”
A
large Welsh study on longevity found that those who had sex less than
once a month had double the risk of dying prematurely than those who had
sex twice a week. Aside from the health benefits, couples with a
healthy sex life can also look up to seven years younger, according to a
study by the Royal Edinburgh Hospital – possibly because sex reduces
stress, leading to greater contentment and better sleep.
Walnuts
are the healthiest nut of all because they contain the most
disease-fighting and anti-ageing antioxidants, according to recent
search from the University of Scranton, US. Eating just three walnuts a day is enough to reap the full benefits.
Figures
show that 50% of people in the UK are deficient in vitamin D, the
nutrient made by the action of sunlight on our skin, increasing our
risk of a host of potentially fatal conditions including heart disease,
osteoporosis and cancer. To boost your vitamin D levels without
raising your risk of skin cancer, Cancer Research UK now recommends
getting a few minutes (in practice around 15 to 20) of sun around the
middle of the day without sunscreen. But make sure you don’t burn, or you’ll wipe out any health benefits.
Developing
close friendships and family ties is the secret of living to 100,
according to a recent Australian study of centenarians. Friends
provide emotional support, which helps us deal with stress, and feeling
loved boosts production of feel-good chemicals dopamine and oxytocin,
which promote brain growth, combating ageing. Other research has pinpointed six as the optimum number of friends we each need.
The
Okinawans, who inhabit remote Japanese islands, have one of the world’s
lowest rates of obesity, as well as the highest percentage of people
living beyond 100. Their secret? At every meal, they stop eating
when they feel about 80% satisfied, happily leaving any excess food on
their plate. American researchers have also found animals can live up to twice as long when their food intake is reduced by up to a third. As
well as helping them to maintain a healthier weight, it’s thought
eating less means the metabolism has less work to do, putting less
long-term stress on the body.
Lack
of sleep can put you at greater risk of health conditions such as
depression and heart disease, according to a raft of recent research. And
yet a small change makes a big difference – a study from Harvard
Business School in the US found that for people who normally slept for
seven hours or less a night, going to bed just one hour earlier led to a
significant drop in blood pressure – therefore lowering their risk of
heart attacks and strokes.
“Gum disease is the most widespread condition on the planet,” says dentist Dr James Russell. “So I say sarcastically – floss the teeth you want to keep!” And
it’s not just your teeth that will thank you – in the past 10 years,
studies have linked gum disease to an increased risk of other
conditions, including heart disease, diabetes and certain cancers.
Research by US psychologist Dr Howard Friedman has found that the best predictor of longevity is how conscientious a person is. That’s
right – people who are careful with money, thoughtful, detail-focused
and like to put everything back in its rightful place tend to live
longer! It’s
thought that conscientious people may produce more of the feel-good
brain chemical serotonin, which stops them comfort-eating and improves
their sleep. They also appear to be drawn towards healthier choices and can live less risky lifestyles.
People who own a pet are less stressed, less depressed and can live longer than those who don’t, according to research. The
calming effect of owning an animal can even drop blood pressure and
reduce your risk of a heart attack, according to University of
Minnesota researchers in the US. Another study found owners who
walk their dogs daily lived an average of seven years longer than
otherwise similar non-dog owners.
You
might think you’re making it last longer, but studies show that chilled
fruit contains fewer health-boosting nutrients than fruit, which has
been kept at room temperature. For example, tomatoes and peppers
stored in a bowl rather than the fridge can contain double the
betacarotene and up to 20 times more lycopene. Which is good
news, as high intakes of both these antioxidants have been linked to
better heart health and lower rates of certain cancers.
Helping others not only feels good – it could reap big health rewards too. A
long-term US study found that people who volunteered regularly over a
lifetime lived significantly longer than those who didn’t. Volunteers also experienced less depression, fewer pains and better general health.
Singing regularly
could be a better health insurance policy than taking vitamins,
according to the findings of a joint Harvard and Yale University study
from the US. They found that being a choir member increased life
expectancy, and concluded this was because a good old singsong slashed
stress, promoted a healthy heart and helped ward off depression.
A
recent report in the European Heart Journal found that people who eat
eight or more portions of fruit and vegetables a day have nearly a
quarter less chance of dying from heart disease than someone who eats
only three – the national average. This is because every single
portion is packed with vital vitamins and antioxidants, which boost the
immune system and fight the damage that leads to premature ageing.
Optimists
live 12 years longer than pessimists, according to American
researchers at the US Mayo Clinic. Pessimists are also more prone to
viral illnesses and are less likely to carry out essential
self-examinations that detect breast or skin cancer.
Apple juice could help keep your brain young, according to a recent study in the Journal Of Alzheimer’s Disease. Researchers found just two glasses a day reduced the formation of the sticky plaques found in the brains of dementia patients.
Finding out your family health history could help predict your own health future, as many conditions have a genetic link. “We
suspect a condition, such as heart disease or cancer, is genetic if it
crops up more frequently than we’d expect by chance, especially at a
young age,” says Dr Anand Saggar, genetics specialist and Harley Street
doctor.. By identifying conditions that run in your family you can be sure to look out for symptoms so problems are picked up early.
After
the age of 25, every hour of TV you watch could knock around 20 minutes
off your lifespan, say scientists at the US National Cancer Institute. This
is thought to be down to the fact that the more TV you watch, the
longer your body is sat around doing nothing, muscles aren’t exercised
and calories aren’t burnt off – raising your risk of illness and early
death.
“The NHS
doesn’t offer tests for the fun of it – they can, and do, save lives by
catching diseases early when they’re still treatable,” argues Dr Dawn
Harper. “So if you’re offered any test whether it’s a smear, a
blood pressure check or a mammogram, making that appointment should be a
priority – not something that wallows in the bottom of your in tray.”
Scientists
have discovered that waist measurement is a better predictor of heart
disease than either weight or BMI (body mass index) because it can point
to the existence of visceral fat, the dangerous fat that sit around
the vital organs. Your waist should measure below 94cm for a man or below 80cm for a woman.
Married
men are three times less likely to die from heart disease than men who
have never tied the knot, while marriage halves the risk of cardiac
death for women, according to a 2009 study.
Laughter boosts the immune system, slashes stress hormones and stimulates killer T-cells, which fight cancer. But
as adults we only laugh an average of five to fifteen times a day,
while children can easily clock up over a hundred daily giggle bouts.
According
to a long-term Finnish study, smoking not only shortens your life by
around 10 years, but it also lowers your quality of life in old age, as
smokers are more likely to suffer from debilitating illnesses.
More than 1,000 studies have found a link between faith and living longer. It’s
thought that having strong beliefs helps people deal with stress and
emotional problems, and also seems to offer protection against heart,
respiratory and digestive problems.
It may just help to check your “cardiac risk score” before you settle down in front of your TV to soak in a month and more of World Cup excitement.
Men above 45 with a heart condition, high blood pressure and uncontrolled diabetes or those who smoke or have a family history of cardiac ailments have a score of above 1, which puts them in the risk category, say experts. Increased excitement (caused by a goal from your favourite team) or a spurt in stress level (triggered by a goal scored by the team you hate) is a recipe for heart attack for this group.
But that does not mean you switch off the TV or watch something more tepid, like the India-Afghanistan Test match, say doctors. Just don’t get too psyched up; and, in case you cannot handle a nerve-wracking encounter, take a break to calm your frayed nerves.
“Watching football can be life-threatening,” cardiac surgeon Kunal Sarkar agreed, explaining that excitement could trigger neuro-hormones, which would lead to a spike in heart rate and blood pressure. “The heart has to pump faster to meet this sudden spurt in cardiac activity, which could cause a cardiac arrest. Those with heart ailments or high blood pressure are especially vulnerable. My advice would be to restrain your excitement if you feel you can’t handle the stress,” Sarkar said.
High-profile sporting events like the Fifa World Cup lead to a rise in the number of sudden cardiac arrests. “Unlike cricket or golf, which are relatively passive sports, passions run high in football. There’s hardly any cooling-off period in the middle of a match and those rooting for a team tend to get involved. The sudden flow and ebb of hormones could be dangerous,” he said.
Before you tune in to a high-voltage match, get your basic health parameters screened, advised AMRI Hospital consultant Debashish Saha. “A significantly large number of those who will be watching the World Cup are undiagnosed cardiac patients. It is this section that can be caught unawares. A sudden flow of adrenalin could be harmful for those who have blocked arteries,” Saha said. A cardiac risk score of 1 and above puts you at moderate risk and those with a count of 3 and above fall in the high-risk group. “It is calculated on the extent of your cardiac complications, blood pressure, blood sugar count and genetic propensity. The majority of those with a count between 1 and 3 are not aware that they are at risk,” Saha pointed out.
Any excitement can trigger a sudden rise in catacolamin (adrenalin) levels in blood. A sudden adrenalin rush leads to high blood pressure and heart rate since the heart starts pumping faster. “It could be dangerous for the high-risk group as most don’t have regular check-ups,” Saha said. But the “healthy population” — those with normal body-mass index, no blood pressure, diabetes or family history of cardiac ailments and non-smokers — can remain unaffected by heightened stress, experts say.
All is not lost for those with a score of more than 1, though. “Periodic screening can help scale down the modifiable risk factors like blood pressure, sugar, cholesterol and smoking. This can bring down the risk factor and make you less vulnerable to football-triggered stress,” explained Saha.
It was not just watching a game that could raise your stress level, warned senior consultant Arindam Biswas. Even an animated discussion or a sudden argument in the middle of a match could be dangerous for the risk-group, he pointed out. “If you are a passionate football fan, avoid sudden outbursts of emotion like screaming after a goal. And never, never skip your medicines,” he said.
A FIFA World Cup or an IPL could be risky for the faint-hearted but it would not be fair to “blanket label” these events as risky, argued Hrishikesh Kumar, senior consultant at Institute of Neurosciences Kolkata. “Watching late-night matches could be risky, though. Lost sleep can lead to stress, depression and anxiety, which are a perfect recipe for a brain stroke. So check your cholesterol count and make sure that you get enough sleep, even if you have to miss Messi in action,” he advised.
Like everyone, you too want to become rich. But you don’t have any clear idea about how to get rich quick & fast. You have already seen a lot of ‘get rich scheme’ on internet but have never succeeded at any of those
So hat exactly do you have to do?
Will there be any magic that will get you rich?
Is bad luck s stopping you from becoming rich?
No, its not. There is only one thing which you need to become rich. And that is your STRONG DESIRE. So, if you have a burning desire, I can show you some proven ways to get rich. There are nine solid ways to become rich & most of the people in this world who became rich used one of these. Exceptions
People who are born rich – This is beyond your control.
People use illegal way – I will discuss some of these ways but do not recommend any of these.
13 Proven Ways to Become Rich
Here I am going to show you the most proven 13 ways to become rich. Remember, there are no shortcuts to success. So, to make lots of money, you must work smart & hard with strong desire. So find here the ways-
1. Internet Marketing
This is one of my favorite ways to become rich. If people ask me only one & the best way to become rich then I recommend Internet marketing only. Millions of people around the world have become rich through Internet marketing over the last 15 years. There is no better time than this for a smart & hard worker to use Internet marketing to get rich quickly. There are number of ways provided below-
i) Make Money Online Program There are hundreds of ways to make money online. You can find all these ways here. We also provide free training material for each & every method once you sign up. ii) Sell your own product This is another method, I will recommend to get rich fast. Either, you can create your own website to sell your products or become a seller on sites like Amazon, eBay etc. & sell your product. iii) Blogging & Affiliate Marketing Blogging is one of the highly recommended ways to become rich. You just create a blog, write your experiences, opinions, ideas etc. and share with the world. Then promote it through digital marketing techniques, get the traffic and make huge money. You can earn either by placing AdSense ads or promoting affiliate programs in your blog.
2. MLM (Network Marketing)
Believe me, this is one of the easiest & quickest way to get rich. Not one, but I have literally seen hundreds of people made millions of dollars though network marketing. No education, no qualification & low investment needed to get big success in MLM. So what exactly you need to start making money from network marketing.
If you want to increases the speed of success, you can promote your MLM company through Internet.
3. Shows like ‘Who Wants to Be a Millionaire’ or ‘KBC’
Whether it is KBC in India or ‘Who Wants to Be a Millionaire?’ in USA, there is a big scope of making a million dollars in just 1 hour time. The major here is your luck. Another important factor is your knowledge. Hundreds of people earn big amounts every season in these shows. Many of them have earned even 1 million dollar on their sheer intelligence.
4. Stock market
What better option for people with financial knowledge? However, high returns in stock markets involve high risks. Stocks have the ability to make you millionaire overnight, or bankrupt too. So play safe & in limits. Your knowledge about market plays a very important role to make big money in stock market trading. Even if you have lots of knowledge, there are some basic rules of stock market you need to follow. In order to make (not lose) big money in share market, stay updated regularly through finance blogs or news channels like CNBC, Bloomberg etc.
5. Bring a new idea
There is no second opinion in the philosophy: “An idea can change your life”. Here I am not talking about the idea to make money but an idea to solve some problems in your life. Some of the ideas that made people super rich –
You can also think of small ideas that are new in your city, state or country. Some of the ideas that you can work on:
Toys on rent business
Healthy breakfast service
Food Truck
Virtual assistant services
Cost cutting services
Social media profile management
Your own new idea….
6. Make Viral YouTube videos
Watching videos has become a growing trend on Internet. If you have some unique and viral content and want to share with people, upload them on YouTube. You can earn minimum $1 per 1000 views. Sometime even one simple video can make you earn thousands of dollars like Charlie Bit My Finger or Dhinchak Pooja. If you create a channel and create quality videos regularly then there are great chances of becoming rich. If your channel becomes famous you can earn millions by joining YouTube Partner Program. You can find some of the YouTube video ideas here and check some of these top YouTube earners who makes millions of dollars monthly.
7. Gambling
There are many legal ways of gambling & betting you can use to become rich. You can find number of online gambling sites, casinos or you can even buy lottery tickets. But there is an equal chance of losing your money. If you can afford to take this risk then this is also one of the best way to make money.
8. Work hard towards your passion
Every person in this world comes with some passion. Don’t let this waste. Work hard towards your passion that when there is a discussion on that topic, people will know your name.
Who do you remember, when you talk about football match:- Ronaldo or Messi
Who do you remember, when you talk about movies:- Brad Pitt
Who do you remember, when you talk about best PAAN:- Muchhad Paanwala or …?
Who do you think about, when you talk cricket:- Sachin or …..?
There are thousands of such examples. You have the passion for photography, you can become a top photographer; you have passion in studies, you can do your best in education; you have passion in sports, you can become a top sportsperson; you have the passion in music, you can excel in music world & so on.
9. Marry a Rich Girl / Boy
Bill Gates says: ‘ It is not your fault if you are born poor. But it is definitely your fault if you remain poor.’ What easy option can you find than marry a rich girl (if you are boy) / boy (if you are a girl). If you can manage to marry a rich girl or boy then you can make yourself a rich person. There are lots of ideas on internet that will give you the secret of attracting a girl. If you follow this idea then follow with a true heart & never try to cheat anyone.
11. Ancestral Will
A Will is a legal document when a person wants to transfer his property or possession to his legal possessor or immediate relatives. If you are legally nominated as the possessor in the will, you can become rich overnight after the persons death.
12. Invent something & earn royalties through Patents
You can even think of inventing something and earn royalty by patenting your product. If anyone wants to use your patent product, he/she will pay you what’s known as a licensing fee. This can become a lucrative business as you can make millions in profit. Bayer sells cancer drug Nexavar and earns millions per month through its patent drug.
13. Lottery
This is one of the simple and easiest methods to earn money with little investment. One can play online lottery to earn money in his free time and quickly become rich. Online sites like Playwin, Lotto lottery are quite popular to play online lottery.
Not Recommended Ways to Get Rich Fast
Other ways to become rich is making money though illegal ways which sometimes make more money than some of the most profitable businesses. But none of these ways are recommended as these are against the law..
1) Carding
Carding is trafficking of bank accounts, credit/debit cards to withdraw money through fraudulent activities. The use of credit cards have increased tremendously to pay bills and for online shopping. You can steal credit card information or bank details information and use it to buy lavish and Luxury product in account holder’s name.
2) Illegal Trading
A lot of dark web platforms/merchants are there for illegal buying and selling of restricted goods or products. If you can find someone who is trading illegal goods you can buy it in dirt cheap price and sell it to someone who wants to buy it. Just add your commission and you are good to earn some hefty amount.
3) Webcam Model
Although this is the fast way to get rich but this can tarnish your image in the society. You need to become a member to an online web cam site . If looking to become rich quickly watch out for clients from western countries who can pay you in dollars to watch your live footage.
4) Start an Escort service
Starting and operating an Escort service can bring in thousands of dollars on monthly basis. One needs to connect with top models and watch for clients who are ready to spend hefty amount on them. Earn your commission on every client who takes your escort service. This is one of the most high profile business where you can become rich overnight.
5) Ponzi Scheme/ Fake Scheme
A Ponzi scheme is a fraudulent service which promises high returns to its investors on their investment. You can create ponzi scheme and grab the interest of the investors who are ready to invest in your scheme/business. The more people invest, greater would be your profits. You can keep paying your older investors till you have funds coming in. When flow runs out you can close the scheme and go underground.
6) Hackers for Organized crime or Cyber crime to steal money
One of the rising ways, due to increase in the number of internet users, is to steal money online or sell critical information through hacking. One who understands technology and has hacking skills can become rich overnight by hacking someone’s account or steal giant companies data and sell it for millions to their competitors. One should also understand that it’s a high risk affair and you could be jailed for years under the cyber crime law.
7) Drugs Dealer
This can be a high income generating business for you as there is a steep rise in the number of people who wants to consume drugs. Watch out for a drug baron to purchase drugs illegally and sell it buyers in small quantity. Once your name becomes synonymous among drug user’s, druggie’s will start approaching you. You can become rich by dealing and selling drugs with high demand. One should remember that this is a high risk business and if caught you could land in jail for years.
8) Gold Smuggling
Being a gold smuggler can fetch you high income as Gold being one of the precious metal with high demand both nationally and internationally. You can become a gold smuggler by supplying large quantities of gold through hidden ways in different countries. One can become rich as buyers are ready to buy gold worth millions of dollars. You can calculate the commission you can earn through smuggling of gold.
9) Illegal Wildlife Trade
Wildlife Trafficking is also a way where you can make big money and become rich through sale of rare animal species. Rare animal species like India Pangolin, Owl, Tortoise, tigers are always in demand. You can watch out for buyers nationally as well as internationally and quote huge amount and can earn anything thousands of dollars. One should remember that illegal wildlife trade is the 4th largest crime in the world leading to decimation of wildlife species.
10) Black Arms and Ammunitions Trade
Arms trafficking also know as gunrunning, is trafficking of contraband weapons and ammunitions. There is always a high demand for arms and ammunitions in the international black market which is estimated to be around $8 Billion. Illicit arm and ammunitions holds about 10%-20%. Hence you can calculate your earnings if you become a trader for black arms and ammunitions. Laws are very strict against illegal trading of Black arms as you could be jailed for more than 10 years with heavy fines.
11) Counterfeit Products
Counterfeiting products means imitating or creating a copy of a high priced branded product. Countries like India, Dubai, USA is huge market and has become a base for manufacturing duplicates for branded products. You can manufacture or import from china and sell in the local market with low price tags with high volumes and easily generate high profits to become rich.
12) Illegal money transfers
Illegal money transfer, also called ‘Hawala’ is a money transfer system widely used in Arab states and different parts of the world. The broker has to ensure safe transfer of money without actually physically moving the money. In a year about $700 million worth of amount is transferred illegally. Hence you can easily become rich if you become a hawala broker. All these ways are not recommended because you can get into very serious trouble with law. This will also severely affect your family and social status. So which idea you want to go with to become rich. If you are already rich, then how did you become rich. Tell your story through comment.
Budgeting has a bad reputation among a lot of America households who view it as a way to strip all the fun out of spending money. No more shopping. No more eating out at restaurants. No more golfing on weekends. That is not the purpose of a purpose of a budget. A budget simply shows how much money you have coming in and how those funds are spent. It’s one of the most important tools in building a successful financial future, because it helps you get the most out of your money. Regardless of economic standing or which generation you fall into, every consumer can benefit from creating and managing a budget. A budget gives people a sense of control over their money. Think of a budget as a financial foundation. Each person’s foundation is going to be different, just as each financial situation is different.
Choosing a Budgeting System
There are four basic ways to create, track and monitor a budget. Each system uses different techniques, but they all center on organization and attention to detail.
The Notebook and Pen: This is the oldest method for budgeting, and it’s also the least expensive option. With this method, you simply write down all your sources of income and all your expenses. If they balance, you’re good to go.
The Spreadsheet: The most popular spreadsheet software for budgeting is Microsoft Excel. Many websites offer free samples of Excel budgeting worksheets that consumers can use, instead of trying to create their own. A spreadsheet lets you organize a lot of information easily and does the math for you.
Free Online Software: There are several free web-based software programs that can help with budgeting. Such programs like Manilla and Mint.com allow you to create and group your expenses into categories and track your spending, so you can see exactly where your money is going as soon as the transaction takes place.
Financial Software: There are also financial software programs, but you need to be computer-savvy to use them. Quicken is a leading product.
You can also check with your local credit union or bank for tips and tricks. Your saving institution may even have budgeting worksheets on hand to get you started. If you prefer, the U.S. Financial Literacy and Education Commission (FLEC) has numerous budgeting worksheets and resources to help you at any stage of life.
Creating a Budget
Budgeting strategies and techniques vary across the board. There will be differences, for example, between what works for a first-year college student and one for a retiree. But there are five basic steps in creating a budget. They are all important because they build on one another, helping you organize your finances sensibly.
Step 1: Set Goals
There are two types of financial goals: immediate and long range. Immediate goals focus on using your money today, while long-range goals deal with saving and spending over decades. Both are important, and complement one another: Saving money today affects what you spend now but also how much you’ll have later in life. You need to determine which goals address necessities and which ones cover luxuries. Then, you can prioritize your financial goals accordingly. Immediate financial goals include covering current expenses. Some of these are obligatory and include your mortgage or rent payment, car loans, utilities bills, child care, food, cell phone and household supplies. Secondary goals, called discretionary items, include non-essential clothing, subscriptions, dining out and taking vacations. Long-range financial goals could also include retirement savings, investments and charitable donations. If you have debt, paying it down can be both obligatory and discretionary. Making required payments is essential to financial solvency, but paying debt early, while not required, can make long-term sense.
Step 2: Calculate Your Income and Expenses
After you determine your financial goals, you need a plan for reaching them. To do this, you need to evaluate your income and your expenses. Most people budget monthly because most bills follow a monthly schedule. Start by making a list of your monthly income sources, including your salary (after taxes), any bonuses you incur on a regular basis, and child support or alimony payments. If you don’t know the exact amount, you can use an estimate. Once you have your numbers, add them up. The total is your monthly income. The next part of the equation is your expenses, which fall into three categories: fixed committed expenses, variable committed expenses and discretionary expenses.
Variable committed expense: These vary from one month to the next month based on need, and would include groceries and gasoline.
Discretionary expenses: As noted, these are optional expenses and include recreation and entertainment. A gym membership would also fall into this category. Discretionary expenses often make life more fulfilling, but they should be the first expenses to go if you can’t afford the basics.
If you fail to pay off your credit card bills each month, you’ll begin to pay a great deal of interest. This can play havoc with any budget. If your carried-over credit card payments eat up more than 10% of your monthly income, you should consider speaking with a nonprofit credit counselor. Over the telephone or online, a free credit counseling session will walk you through your budget and recommend expenses that can be reduced or eliminated. If you qualify for a debt management program, you may be able to reduce your monthly debt payments as well.
Step 3: Analyze Your Spending and Balance Your Checkbook
The goal in budgeting is to make sure your expenses do not exceed your income. If they do, and more money is going out than is coming in, then you need to make adjustments. This doesn’t necessarily mean you need to start penny-pinching; it just means it is time to revisit the discretionary cost category and see where you are willing and able to cut the fat. If you make any payments by check, your checkbook register can help you keep track of incoming and outgoing money, and what you spend money on. Although paying by check is becoming rarer, those who stick to this payment method should keep their checkbooks balanced. This will help you avoid overdraft fees or bounced checks, and it can shed some light on your spending habits.
Here are the basics:
Keep records for all your deposits and purchases. Record each one in your check register, which the bank will provide you.
Print out or download your monthly bank statement if you aren’t already getting one in the mail. If you’re doing everything online, there is software that can make this step — and budgeting — easy.
Do your own math for deposits and withdrawals to make sure your bank hasn’t missed anything or taken liberties with your money. Reconcile line by line, making sure your record of checks is the same as the statement.
Find the ending number from each monthly statement and work backward, check to see what has cleared, and what has not cleared. Deposits that haven’t cleared will need to be subtracted from your balance. If your checks haven’t cleared, they will have to be added back to your balance until they do.
Go line by line and account for any fees you’re charged. Seeing them up close may prompt you to call and ask to have some removed, which the banks often will do if you persist. Also, add the pennies of interest you may have received.
Again, if you have access to a computer, or even a smartphone, this process can be automated using financial software or apps, saving you time and frustration. The goal is to review your cash flow, look for errors and learn from what you see.
Step 4: Revisit Your Original Budget
After you’ve had a chance to monitor your income and expenses for a month or two, you will be more aware of areas that need adjusting. Maybe your initial monthly income estimates were off, or perhaps you didn’t account for expenses like car repairs or veterinary bills. Make adjustments, but always balance inflows with outflows. Once you work out all the kinks in your budget, you need to commit to following it. No budget is forever, however, so periodic reviews are key to success. If you get a promotion, for example, you can increase your discretionary spending as well as your savings goals. On the other hand, a layoff or fewer work hours could mean cutting back on spending until you restore your income. Savings should be part of the plan. Financial planners recommend that your savings cover six months of income, enough to compensate for a job loss or other emergency. You might find it useful to open a separate savings account and fund it gradually until you reach the goal. Keeping a separate account will make it more difficult to raid the emergency fund to cover non-essentials.
Step 5: Commitment
Creating a budget is a great step in working toward a more financially sound future for you and your family. Committing to your budget will get you there. Remain realistic, evaluate it often and don’t be afraid to adjust. Budgeting is all about balance.
Managing Your Budget When Unexpected Bills Arrive
As mentioned, an emergency fund is crucial to financial security. Start by setting aside $50 per week. In a year, you would have $2,600, plus any interest, for when the refrigerator stops working or when the transmission blows. Experts recommend looking at your withholding taxes to find hidden cash. If you receive a large refund every year, perhaps you need to change your filing status to receive additional money in your paycheck to put toward an emergency fund. Unless, that is, you are putting your tax return funds into that fund. Medical crises in particular can turn a balanced budget upside down. Negotiate large medical expenses, such as an emergency hospital stay, with the hospital. Almost all hospitals negotiate fees. Often if you contact them immediately instead of waiting until the amount goes into collections, the hospital or provider’s office can set up a payment plan. If not, a medical bill consolidation may help, as it allows you to combine all your medical bills into one lower monthly bill through an agency or a bank loan. This not only makes it easier on you, but the arrangement protects your credit score because you are able to make on-time payments. The downside is it may take you longer to pay your debt in full.
Benefits of Budgeting
Everyone can benefit from taking a pronounced and proactive approach to control their finances. Committing to your budget will help guide you into a much better financial position.
Budgeting can improve your life because it:
Reveals waste. Creating a budget sheds light on areas that many people neglect on a day-to-day basis.
Directs priorities. A budget allows for people to look at the big picture of their spending habits and set new priorities to maximize their money’s potential.
Creates new habits. When people get a clearer picture of how they’ve been using their money, it allows them to shift expenditures into different categories, making them more conscious of unnecessary spending.
Reduces stress. Finances are one of the top stress-inducing situations. When there is a sense of control over the money coming in and the money going out, the stress can transform into a feeling of empowerment.
Educates. Having a budget allows people to view money as a tool, shifting the mindset to focus on long-term goals and future needs.
Creating a budget is the first step, but maintaining the budget is where you start to see real growth in yourself and more stretch in your dollar. Sticking to a budget can be a difficult task for people who aren’t used to spending boundaries or self-discipline in their finances, so it’s important to maintain a positive attitude toward the process. Staying motivated can help alleviate some of the pressures of budgeting. Consider setting aside some money each month so you can look forward to a relaxing vacation at the end of the year. Finally, set realistic goals. Start slowly, building up to a plan that works for you and your lifestyle.
The Finer Points
Wants vs. Needs
“You Can’t Always Get What You Want”, one of the Rolling Stones well-known 1960s hits, touches on an issue many of us face all the time. The message is you might not be able to get things you want, but if you try, you’ll get what you need. How do you separate wants from needs and why bother? For many of us, knowing where to draw the line can mean the difference between creating a successful budget and going broke. So what’s the difference. Most needs are synonymous with non-discretionary expenditures. They include shelter, which demands payment of rent or a mortgage, and food, which results in grocery bills. There are plenty other items that are basic and non-negotiable, but the non-negotiable category leaves room for choice. For instance, if you need a car to get to work, you could buy a used Kia sedan or a new BMW. The price difference is huge, and the Beemer is certain to impress your friends and offer a fine driving experience. The question is what can you afford? If you make a $500,000 a year, the BMW might be yours without stretching your finances. But if you’re taking home $40,000, it’s better to stick with the Kia.
The same rule applies to housing – should you rent a one-bedroom apartment or buy a $400,000 house? Again, both offer shelter, but at radically different costs. There’s also the difference between needs and items that you could get by without. Think about taking a vacation to Thailand versus a week driving to state parks near your home. Both can offer satisfying and relaxing places to spend your downtown, but the costs are radically different. Also think about impulse buys. Say you go to home improvement store to buy some lawn fertilizer and leave with a lawnmower you hadn’t planned to buy. You might need a new mover, but it’s a good idea to research models and prices before putting your money down. Knowing the difference between wants and needs is a key to a successful budget. You can budget for some impulse purchases or product upgrades, but understand what you’re doing, show restraint and always make sure your budget balances.
Seasonal Expenses
A sizable amount of your money is likely to go to one-off expenses that arise over the course of a year. Examples include holiday presents, birthday gifts, summer vacation costs and back-to-school spending. Some seasonal expenses are for stand-alone items like presents, others are for basics. Heating you home is an issue for the cold-weather months, for instance, and a higher water bill might coincide with irrigating your lawn in the summer. Clothing is also seasonal, with swimming suits for the summer and heavy jackets for the winter. When you draw a budget, study your outflows during the past year or two and estimate the impact of seasonal costs, then build those costs into your plan. If your summer costs are much higher than springtime, make sure you save enough in the spring to fund spending in the summer.
Checking in on Your Budget
Budgets are living documents. Just as life is constantly changing, the demands on your budget change too. For that reason, it’s good to regularly review you budget to adjust for changes in income and expenses. What should you consider? On the income side, you should make adjustments if you get a raise or receive a windfall like an inheritance. You need to adjust if you lose your job or move to a new one. Getting married or divorced requires a massive reworking of your budget. So does having a child. Sometimes the changes are smaller or temporary, things like a medical insurance copayment might require a temporary adjustment. You don’t need to overhaul your entire budget when changes happen. Your rent is rent, and what you spend each month on your car is unlikely to change. But other things are more flexible. If you income drops, you might eat out less. If it goes up, you could save more, pay off debt quicker or make a discretionary purchase. There’s no hard and fast rule about when to review your budget. Some financial consultants suggest doing it constantly, others suggest every several months. It’s probably good to consider revisiting your budget when life-changing events occur, and set intervals to adjust for smaller stuff like inflation and changes in fixed costs.
Automatic Saving and Recommended Percentages
You should strongly consider making automatic saving a part of your budget. What is automatic saving? It’s the money you set aside for funding an emergency account, paying for Christmas gifts later in the year or creating a college fund for your kids. Automatic saving is best handled through paycheck withholding. If you’re saving for retirement and you company offers a 401(k) plan, sign up and have money withheld from your paycheck. Many employers also offer medical and childcare savings plans, which are typically tax exempt. You can also have your salary automatically deposited in a checking account, then transfer part of the pay to a savings account that you don’t plan to touch. There are many strategies for automatic savings. Talk to a financial adviser to learn more about the options and what amount of saving you can afford. Once you implement a plan, stick with it. Percentages will vary, but if your company will match contributions to your 401(k), save at least the maximum amount that will be matched. Other savings will be largely determined by your income and expenses. If you need to withhold 20% of your paycheck to cover the rent, make sure you do it. Knowing how much money you need and saving for it will make sure you meet your expenses and prepare for the future. Financial experts have come up with recommended percentages for spending to help people budgeting for the first time. For example, it is suggested you spend no more than 30% of your gross monthly income on housing, whether you’re renting or owning.
Automobiles are the next biggest expense for consumers and probably the biggest temptation to overspend. The best idea is to keep spending between 10% and 15% of your monthly income. Anything beyond that stretches you thin, especially if a financial emergency arises. Student loans might be another variable in your monthly budget. There are several income-based repayment plans that limit your payments to 10-15% of your income. That’s a safe number, but often will extend payments a few years and end up costing you a small fortune in interest charges. Try using 20% of your budget, especially if you don’t have a car payment or are splitting rent with roommates. Other suggested percentages for ongoing expenses include utilities (10%); food (10-15%) and savings (10-15%).
Timing Your Budget
You should commit to staying on budget until you see results. The best way to accomplish this is to create an annual plan that covers your fixed costs like rent and car payment, your seasonal costs like holiday presents and vacations and your discretionary costs like eating out and buying clothes. Work all these things into a 12-month projection and follow it. If you find flaws in the plan or your cashflow changes, you can modify it. Otherwise, try to stay with it. Consider using budgeting software or apps to help you. If you discipline yourself, you’ll be surprised as debts get paid, savings grow and your needs are met.
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