Budgeting your Savings - Did You Let Your Piggy Bank Get Away?

I think most of us have at some point in our lives. Some how we forget to feed the little piggy. And, like most neglected "pets", your piggy bank will disappear if you don't feed it. A personal budget is important to create financial independence and setting goals for feeding that "piggy bank" should be an important part of your budget!

The most successful financial plans allow you to INVEST IN YOURSELF! It just makes good sense. A plan to build financial security should always be considered essential to any budget.

Even if you're on a plan to reduce debt, you need to include plans to build a foundation for future financial security. A good savings routine and variable expense account are essential to building a strong foundation for financial independence.

A variable expense allowance in the budget is important to save for those expenses that seem to "hit us unexpectedly". Funny thing is, we know these expenses will occur. They are an inevitable fact of finances for most of us. So, why do we call them unexpected? I can't explain why, but there are many of us who make this very BIG mistake in our budgeting.

Some expenses don't occur monthly. Some are paid out every now and then, quarterly, yearly, or bi-monthly, or semi-annually. These are expenses like car insurance and maintenance, home insurance and maintenance, property taxes, income taxes, medical expenses (prescriptions, deductibles, co-pays), pet care, school expenses (supplies, trips, activity fees, books), and clothing. Some of these are huge expenses that can put a ripple in any good budget if not planned for.

Most of us have good intentions, but it's easy to fall prey to the credit card companies without a plan to cover all of these "unexpected" expenses. The term still makes me chuckle. I mean, don't we "expect" to wear clothes? It's even funnier to me knowing that I was guilty of this very thing. Poor Planning! Not expecting what should be expected.

Lesson ???.Don't forget about this expenses in your budget. They will sabotage the best of intentions!

The other essential ingredient to a successful budget is a savings plan. A good savings plan should have a goal to reach at least the minimum amount necessary for you to survive for a three to four month period. It may take time, but this a strategy that provides a fail safe against a financial crisis. Crisis such as serious illness or job loss.

Trying to save money by cutting your savings budget out will eventually backfire on you. It is essential to build financial security, in order to remain debt free, you must not compromise your savings expense.

Only if there is no way to avoid it should you reduce the amount of your monthly savings commitment.

Start with 2-4% of your monthly income if you have to. A little is better than nothing, and then you can build it up from there to at least 10% of income as funds become available.

Some Important Points:

Applying extra funds to your debt first will not help you gain financial security. Emergency savings and variable expense savings goals should be met before debt is reduced in order to remain debt free. After all, these sources will be the foundation you will fall back on in order to remain debt free. If you can build a reserve for emergencies you won't have to use those nasty credit cards. This is an important defense that builds financial security. If you use a good debt reduction plan, debt will reduce, and in a reasonable amount of time. As long as you stop creating debt. Just be patient.

Paying more on your debt, instead of saving, is not going to help you pay for that major car repair when the car breaks down. It will most likely do the opposite of your intended plan and send you running for the credit card to bail out.

Of course once you have reached your goals for savings and your variable expense account, then you should start applying extra funds to your debt reduction plan.

Using money saving tips reduces expenses in your budget in an effort to help you build that financial security. Through saving money on everyday expenses and living a frugal lifestyle, you free up monies to apply to your savings and variable expense account. These are the defenses that build a strong foundation for your financial independence.

These "defenses" prepare for the inevitable expenses that will arise. Many of us had just forgotten to plan correctly for these types of expenses. That's how we got in the "big red mess" to begin with. Properly preparing for necessary variable expenses is your defense against feeling the need to use the credit cards.

Once you have balanced your expenses with your income, you have created a Budget for Debt Free Living. Congratulations! You are on your way to financial freedom and security. Enjoy! This concept is simply "living within your means." Something that many of us in today's "plastic society" have forgotten to do.

Live Debt Free to Be Free. You Deserve It!

Cheryl Johnson is a mother of four helping herself and others become and stay debt free. Publisher of Simple Debt Free Living at http://www.simpledebtfreeliving.com - A self-help plan, ideas, and resources for debt management, household budget planning, frugal and debt free living, and extra income opportunities. Money saving tips for groceries, clothing, gifts, home decorating, weddings, and much more. A money saving tip a day keeps the credit card away.

In The News:

This RSS feed URL is deprecated, please update. New URLs can be found in the footers at https://news.google.com/news

U.S. News & World Report

The Downsides to 'Extreme' Personal Finance
U.S. News & World Report
There are dozens of blogs, books and articles dedicated to people who've used extreme methods to reach their financial goals. And while the stories and strategies these hardcore budgeters use can be inspiring, experts recommend thinking twice before ...


KUTV 2News

Utah educators learn personal finance concepts to better teach students
KUTV 2News
(KUTV) -- Utah teachers are getting a refresher course in financial literacy to better instruct students and apply financial concepts in their teaching. Approximately 65 elementary, middle and high school teachers are attending the free, day-long ...


Engadget

Why is a celebrity personal-finance guru suing Facebook?
Engadget
The consumer champion has seen his face co-opted by nefarious types who use his name (and brand) to sell cryptocurrency scams. These get-rich-quick ads are often posted on Facebook, and because the social network doesn't seem to have a handle on them ...
Facebook sued by personal finance guru Martin Lewis over 'scam' advertsThe Times
Facebook sued by personal finance guru over 'scam' adsThe Australian
Facebook: How much of a problem is personal finance guru Martin Lewis' planned libel action with results due?The Independent
The Guardian -The Irish Times
all 106 news articles »

Forbes

PODCAST: How Suze Orman Went From Waitress To Personal Finance Wizard
Forbes
Listen to the full episode here: When Suze Orman was waitressing at the Buttercup Café, she might not have realized she would one day be a household name for financial advice. Suze Orman is a powerhouse stockbroker and author. (Photo by Riccardo S ...


The Southern

Houses Selling For More Than Asking Price
The Southern
Did you sell your home last year? If so, there's a decent chance that you did well on the exchange. According to a recent release from Zillow Research, 24.1% of homes that sold in 2017 yielded more than the list price – up from 17.8% in 2017. In some ...


CNNMoney

6 personal finance habits everyone should get into
CNNMoney
Though Americans are slowly but surely ramping up their savings game, most are still falling short in that arena. An estimated 57% of US adults have less than $1,000 available in savings, while 39% have absolutely no savings at all. Clearly, this means ...

and more »

New York Times

A Personal Finance Book Based on Happiness Instead of Money
New York Times
I've always believed that the beloved personal finance book “Your Money or Your Life” (Penguin, $17) was slightly mistitled. Written by Vicki Robin and Joe Dominguez, the book was updated and rereleased this month, but even when it was first published ...

and more »

FOX43.com

Personal finance myth busters
FOX43.com
YORK COUNTY, Pa.-- There are many misconceptions that come with personal finance today. Many people think you must be rich to be an investor among many other common financial myths that exist. Tracy Burke of Conrad Siegel Investment Advisors is ...


The Sentinel

Video: How Students Can Start Building Credit
The Sentinel
Credit card marketing to students has been curtailed drastically. In our video above, former NerdWallet Credit Expert Sean McQuay explains the changes and how young people can still establish good credit. If you want more credit, check out our list of ...


The Times

Personal finance guru's Facebook case could lead to flood of suits
The Times
As reported in The Times, the personal finance expert Martin Lewis is suing Facebook for allowing scammers to use his name and photograph in fake adverts. It is alleged that the social network has published more than 50 fake Martin Lewis ads in the ...
Facebook urged to use face recognition to block scam adsThe Guardian
Martin Lewis sues Facebook over fake adverts with his nameThe Guardian
Martin Lewis to sue Facebook for defamation in groundbreaking campaigning lawsuitMoneySavingExpert

all 75 news articles »
Google News

Five Secrets for Long-term Financial Success

Future financial success is not a guarantee that any one... Read More

Help With My Annuity

The cries are heard from the distance, "I need help... Read More

Tips To Save Money At The Supermarket

Are you interested in saving money off your grocery bills?... Read More

How to Balance Your Checkbook ? Get a Calculator and Pencil and You are Ready To Go!

Despite how easy it is to balance a checkbook, very... Read More

Banks Are More Than Just A Place To Park Your Money

If you've been to a shopping mall lately, you've probably... Read More

Im Broke, How Can I Afford...

I'm still amazed every time someone comes to me complaining... Read More

Vacations Made Easy: Buying a Florida Investment Property

Vacations Made Easy: Buying a Florida Investment PropertyA relaxing beach... Read More

Personal Finance ? Why You Should Compare, not Despair

Sorting out your personal finances can be a tricky and... Read More

Want Your Savings to Earn a Higher Rate of Return? Try Internet Banking

Doesn't it seem like the only impressive numbers we've seen... Read More

Retirement Income Needs---Less Than You Think?

It is widely written that you need 75% of your... Read More

Budgeting -- The Critical Flaw That Causes Most Budgets to Fail

Budgeting. It's a word we're all familiar with. Everyone knows... Read More

What Are We Teaching our 2005 Graduates about Money?

Now that we are in the month of June I... Read More

A Quck Lesson in Saving Money

Did you have a piggy bank when you were a... Read More

Budgeting is Bothersome

It doesn't take much for you to get behind on... Read More

What?s New in Checking ? From Designs to Photos

Just about everyone has a checking account. Checks present easy... Read More

Introduction to Australian Superannuation

Australians, in general, constitute some of the worst savers in... Read More

Kundalini Lessons - Money

I've been going through and interesting growth period lately that... Read More

Healthy Eating On A Budget

It is possible to eat a healthy, balanced diet without... Read More

5 Steps to Healthy Spending Habits

Next to our physical health most of us are primarily... Read More

Understanding and Controlling Your Finances

Have you ever wondered what it would be like to... Read More

7 Simple Ways To Save Money

Each of us knows how to spend money, but do... Read More

Bankruptcy Chapters Explained

Chapter 7The potential chapter 7 debtor should understand that a... Read More

How To Protect Yourself Against Identity Theft

Identity theft is a serious crime that continues to grow.... Read More

Adverse Debt Levels Blight UK Consumers Personal Finances

Debt levels are at an all time high in the... Read More

The Wonderful World Of Address Labels

Ever wonder where address labels come from? Avery® is perhaps... Read More