Budget Finance Binder

My husband and I recently started using a finance binder to help us with our budget, saving and spending patterns. It has changed our financial lives in a tremendous way, and so I wanted to share it with my readers here. I learned this technique from the book "America's Cheapest Family", which is a fabulous read, and one that I recommend highly.

Here's a breakdown of our Finance Binder contents. Each category has its own page:

• Allowance/Blow Money (this is for our individual misc. spending, like me getting my nails done or my hubby buying new guitar strings)
• Dates/Entertainment
• Fast Food
• Gas
• Groceries
• Rent
• Insurance/Taxes
• Utilities
• Gifts and Charities
• Alcohol/Bars
• Pet Food/Supplies
• Clothing
• Eyecare
• Car Repair/Maintenance
• Haircuts
• Household/Furniture
• Doctor/Medications
• Savings
• Student Loan Debt
• Holiday/Christmas Fund
• Vacation

We keep one checking account and have all the budgets in there together. We use our debit card for everything so we can save all those pennies in each category. We also each have our own checking register and record a purchase/withdrawal in them each time we make them. Rather than keep a running total of the checking account's balance, we just record the purchase and initial which category it is coming from. We sit down once a week or twice a month and write down all the information in the binder and balance it by adding up the total from each category and the making sure it matches the checking account balance online.

If we need to "borrow" money from one account from another, we write it down as a withdrawal from that account and deposit into another. That way everything is accounted for. There is no wondering where the money is coming from for a certain item.

We write the total amount to be deposited each month in a corner of each category sheet so we know how much we have to work with.

If we get any unexpected income- such as overtime hours or gifts- we immediately break it down into what we call our

"wind-fall" plan:

• 60% Debt
• 20% Savings
• 10% Giving
• 10% Whatever we what

This helps us save so much since we are no longer going out and spending 100% of the extra money. It gives us some money to have fun, but while also saving it and directing it to our debt. In short, it gives that extra money a plan.

We've been married over a year and a half now, so this budget system has really been trial and error. It takes a while to figure out what works for you. I think this is the best budgeting system that I have used so far (I've tried excel sheets, mint.com, the envelope system), especially in regards to saving. It's completely portable and can be instantly updated. Plus, you get to look over each category every month and evaluate purchases without scrolling through a mine of transactions.

I hope this helps you in some way, whether you're starting to pay off debt, saving for something special or beginning to budget.

Budget Right: Are You in Denial?

Recently, I stumbled across this article which discusses how many people are in denial about their debt. Why are they in denial? Because they are not seeking help. This is surprising, because the people polled for this article say they have not only fallen behind in their monthly payments, but that they are unable to "meet their credit commitments". Because this article is based on the UK, it reinforces the fact that we are in a worldwide recession.

Does this sound like you? Apparently there are more than 6 million people who are afraid their home my be repossessed. If you find yourself unable to meet your credit commitments, you should know there is help! It's called financial and debt counseling, and its more readily available than you may think.

People who are in denial about their debt reminds me of those who are in denial about their OCD. Research indicates that more than 2 million Americans have Obession Compulsive Disorder. However, it remains to be one of the most under-treated and under-diagnosed pyschological disorders even though highly effective and readily available treatment exists. What is interesting about this is that those with OCD are fully aware that they have a problem. It disrupts their lives by hindering their work, relationships and daily activities. They either don't want to seek help or are unaware that it is available. Likewise, those with debt are also aware that there is a problem, and it severely disrupts their lives as well.

If you have questions about how to manage your debt or get help, I encourage you to check out this site. Jessica Swingle is an accredited Financial Counselor who answers your questions for FREE in order to help get your finances going in the right direction. Specializing in financial counseling for military families, young couples and individuals, Jessica's aim is to get the word out that there is help and educaiton available. She has remarked that the ratio of those who seek help verses those who actively need it is desperately out of proportion. Perhaps many people are simply unaware that financial education and help exists. If so, then now is the time promote financial education awareness.

Saving money by using coupons and sales is simply a starting point for getting your finances inline. However, many people need more professional help with the rest of their financial lives. Perhaps you need to refinance your mortgage, understand your debt repayment options for credit cards or initiate an overhaul on your stock portfolio. Its never too late to get help and advice.

Budget Right: Saving Money with Meal Planning

Menu planning is a great way to save money on your grocery bill each month. With a little time and effort, you can not only save money in the grocery, but save time and sanity in the kitchen as well. Whether you shop once a week or once a month, learning how to effectively plan out your meals will reduce unnecessary spending and help you stick to your budget.

1. Take inventory of your pantry. Before compiling a list of menu ideas, it is important to check what ingredients you currently have on hand in the pantry. Many times, we forget about food pushed to the back of the refrigerator or pantry. After you have assembled your list, you are ready to think of meal ideas to help save you money.

2. Make a list of meals. This should first be done in a separate notebook so you can add to it each week or month. Consider what ingredients you have in your kitchen-- can you make a meal out of them, or do you need to buy more food to complete the meal? Look at the example below:

Inventory: Black beans, corn, peas, salsa and pasta.
Meal Ideas: Black Bean Burritos (need to buy tortillas); Spaghetti and meatballs (need to buy meat and sauce)...

3. Decide on possible meals. When first starting out with menu planning to save money, I recommend beginning with a list of 7 dinner meals rather than 7 lunches and breakfasts as well. As you get better, you may want to start planning these meals as well, but focus on dinners first. In another notebook, write "Menu Plan" followed by that week's date (or month if you grocery shop monthly). Write down your choice meals. Then, on a separate sheet of paper, begin to create your shopping list. This is where you would add the extra ingredients needed to make meals with the food already on hand in the pantry. If you do not have any food in the pantry, then you will have a bigger list. Whenever you think of a favorite dinner or meal idea, write it down in the meals notebook. This will become your "Master Meals" source you can consult for easy menu planning in the future.

4. Consider local sales and coupons. If you like to coupon, it helps to plan your meals around what it on sale and what coupons you have. This will save you even more money with menu planning. If consulting sale ads and coupons, it is helpful to begin menus at the beginning of each week when the sales start.

5. Stick with your budget. If your grocery budget is $100 a week, then add up the anticipated cost of each ingredient on your shopping list. Does it exceed or meet the budget? If it's too much, try adjusting the meal ideas in your menu. This ensures that no surprises happen at the register. If you are unfamiliar with the cost of an item, try writing it down the next time you grocery shop. You will eventually be able to approximate the total cost of your grocery bill with relative precision, allowing you to save more money while maximizing your budget.

6. Go by the menu plan. I find it helpful to post the menu plan for the week on the fridge. That way, everyone in the household can see it and make decisions based on it. If you do not like the idea of planning out each day's meals, then choosing from a list of 7 each day allows more freedom in the kitchen while still sticking to your meal plans.

Remember to account for anticipated events where a meal at home is not necessary. For example, if your family attends a church dinner on Wednesday, only plan for 6 dinner meals that week. Whenever you think of a new meal idea, write it down in the "Master Meals" notebook so you don't forget. Use coupons and sales to save more money at the grocery store, or buy store brands.

This article originally appeared on eHow.com. To read the original article, click here. To read other articles like this, click here.

Recession Wedding Planning

Planning a wedding anytime soon? Find yourself in financial constraints that leave you unable to plan a $20,000 wedding? Click here to read all about planning a wedding for under $1,000. From dresses to cake to photography!

Because the wedding is just a day, but the marriage lasts forever.

Budget Right: How to Create a Budget

In order for you to budget right, you need a budget to work with. Many people are dumbfounded at the idea of creating a specific amount for each category of their spending. Why would anyone want to do that? Isn't budgeting just for those with tiny incomes? I'm here to tell you that its something EVERYONE must do in order to achieve financial freedom, whether you're a multi-millionare or living near poverty line.

The Basics

The best way to start your budget is to begin with some recommended percentages. I'll give Dave Ramsey's suggestions for each category, but bear in mind that if you make less or more the degree of percentage can differ.

1. Charitable Gifts- 10-15% (its good stewardship to give to others and then yourself. However, if your income doesn't allow for this much, don't fret. Just give what you think is a reasonable amount. It's very important to get into the habit of giving and to write it into your budget).
   
2. Saving- 5-10%
3. Housing- 25-35% (if your housing is eating up any more than 35% of your income, I would suggest considering making more money or moving to a more affordable residence)
4. Utilities- 5-10%
5. Food- 5-15%
6. Transportation- 10-15% (I would include car insurance here)
7. Clothing- 2-7%
8. Medical/Health- 5-10%
9. Personal- 5-10%
10. Recreation- 5-10%
11. Debt- 5-10%

These percentages are certainly simply a starting point for figuring out your budget. For example, my husband and I do not match some of these percentages, but we do use them as a framework for what we want to aim for. This will differ among households.

For free budget software, check out mint.com. For financial and further budgeting advice, check out JessicaSwingle.com. For free budget spreadsheets and more information, check out Christian Personal Finance.

Budget Right: Getting Help with Debt

For those of you who read my last post on debt management here, I figured I should leave you with some places where you can get debt help if you really truly don't know where to start.

If you are struggling or unsure about your college loans (or if you just recently graduated, like me, and are dumbfounded at that huge financial commitment you made about four years ago when all you wanted to do was move into the dorms with your friends), check out this site, called You Can Deal With It. This is a great site full of resources to help your manage and get help in paying back your student loans. For example, you can learn about the different repayment options available for your loans and find out who to call if you are about to default. It also discusses loan consolidation, and gives you tips on how to practically manage your money.

If you need debt help with credit cards, this site also provides some valuable information on step by step actions you can take now to help eliminate it.

With the Obama Administration's new financial stimulus plan, there is real help for those of us (in the USA) who've found themselves unable to pay the mortgage. Click here to visit the government's website to determine if you are eligible for refinancing.

I hope this helped steer you in the right direction if you are having trouble getting debt help.

Click here to read my review of Dave Ramsey's bestselling book, Total Money Makeover. I really encourage anyone who's trying to get control of their finances to read his book. You can buy it here.

Stay tuned for more on budgeting right as well as more principles from Dave Ramsey!