Re: Budgeting advice

[Anonymous]

I’ll take a shot at it Nedisings….. this is a page from my life so…. I have had the experience….. it worked very well for me. I have also put both my ADD children on this path and they are on their way to having a nice pot of $$$$….. financially stable, and well looked after $$$ for the rest of their lives. ON THEIR OWN!!! Proud Dad….

Simple Steps: (I’m gonna provide detail so don’t be offended)

1. Set a date to do this ( a drop dead date…. no ifs or buts)

2. Set aside a few hours ( no distractions or don’t do it….tell people around to leave you alone, don’t answer the phone )

3. Get a Pencil (not pen) and paper ( maybe a few sheets lined), a calculator if you have one would be nice (math challenged)

4. List your expenses down one side of the paper…ALL OF THEM…..a few you can lump into categories i.e. (fun entertainment)

5. Next to your items indicate what you spend each month on that item…. be honest

6. Annual costs or 1/4 annual costs etc. should be divided appropriately into monthly and add them to your monthly sheet

6. Next review your costs….see if there are places you can reasonably trim a little spending do it no matter how little but be realistic…… ensure you can stick to it….. there is no use in trimming if it’s not what you can live with!!!!!

7. Subtract your monthly costs from your monthly income!!!

There you go…… with any luck you should have some $$$ left at the end of the month.

Part II

1. Start a separate bank account ( do it now )….. none checking, non automated teller usable. Place your saving in that account!! You will never EVER spend this money….EVER EVER EVER!!!

2. Once you have a certain amount ($100.00 or $200.00 what ever that number is)….. put it into a GIC type of fund…. at the best interest rate you can, your bank can do this for you. This is money you will never ever think of spending again!!!! I’ll tell you why in a minute.

3. Find a financial adviser (mutual funds not the market) …..there are many…. find one that does not charge you for advise!!!! Find one that does not charge you fees!! They are out there…..find one that….if you make money they make money….THEY ARE OUT THERE!!!! Beware of the glitzy get rich quick advisers….. there is no magic bullet. If they offer interest rates of more than 5% >8% they are suspect….in this market less might be right too.!!!

5. You can agree (with your adviser) to a certain amount of $$$ you will invest every month…every month, automated form your bank account.

NOTE: The advisor should educate you on your risk tolerance and show how much you should be putting aside for where you want to be at what point in your life!!!!

They should be open to talking to you at least once a 1/4 for no charge…and make directional changes in your portfolio at no charge!!!

There is no substitute for time in the market… they will explain this to you. Consistent, diligent saving is the key. At the same time keep adding to your special savings account …to your GIC base….. I was going to tell you why. At some point in the future if you need to borrow you can use your GIC base for collateral and reduce your interest rate…increase your credit rating all at the same time…while your GIC is still earning interest.

That is a thumb nail on how to be financially independent. I did it…… I explained it to my children and they are both under 30 and have bank accounts that are more than respectable!!!! They have learned do not use your money…use the banks money… if you have money…the bank will love you!!!!

You will find once you get started that you may have been pissing a lot of cash away….so what… no more!!! You do not need to be well off to do this…one of my kids has a bartender job, both live on their own and are doing well. Once you get started it’s addicting, a good compulsive behavior!!! It works…it works for everybody who is diligent!!!!

Small amounts are fine!!!!! Manage the pennies and the dollars will grow on their own!!!!

good luck….. I hope that helps…….good fortune to you

toofat

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