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Digg it UP - Unit Budgeting - A New Way To Save Money
I did a quick, very unscientific survey of 25 of my friends. I asked them to put the mail that they do not open or read in a specific trash bag. At the end of one week they gave it to me to be weighed. Guess how much the bag weighed? Remember, most mail is a fraction of an ounce. 63.4.....not ounces....lbs! Something is wrong with this picture! That's like 2 1/2 pounds per person per week! Holy Cow! Also this was a March survey, what if it had been done in November?Let's get a grip on this absolute waste of paper, ink, money and time! There are some common sense points we need to look at here.Direct mail, at 2-5%, has a totally unacceptable response rate.Bad will generation must be factored into the cost of marketing this way. How many people vow never to do business with the company that sends endless streams of junk mail?The sophistication and alienation of the American consumer will not support this system for much longer. (Did we learn NOTHING from the "Do Not Call" list?)Moving to e-mail is not the solution! It is much easier for a person to close an email account than it is to move.If each of my friends got over 2 pounds of junk mail in just one week.. how can you set your important marketing material apart from all those peices of junk mail?Solutions? Can't think of any? Wait for my next article on April 13th.
Then, there are what I call the "inspirational" methods. These are budgeting "tips" which set unrealistic expectations on you such as "just cut back on going out to the movies" or "always buy the generic brand" when grocery shopping. These methods attempt to control your lifestyle and dictate your wants and desires. It is no surprise that, usually, these systems fail for most people because they present you with a dichotomy (a split) between "needs" and "wants" that makes life generally unpleasant. I'm not saying that there aren't things that you should cut back on or that you don't need to change your lifestyle in order to become financially successful. But, whatever changes you make to your life should be your choice, not your advisor's.
The “Unit Method”
The Unit Method of budgeting takes a fundamentally di
Many people decide to start an affiliate business do so because there are not as many requirements as a conventional business.The day to day running of an online business can be long and sometimes you wonder if it is worth it. You have to deal with products or services, customers and the problems associated with both. An affiliate business deals with none of it.With an affiliate program, you are given a website and all maintenance is taken care of.When you are choosing an affiliate program, researching your options is crucial to your success. There are literally thousands of affiliate programs on the Internet. You want to choose a program the best commission rates. Choosing a product that has proven sales will also assist your affiliate business.Once you have chosen an affiliate program to join, there are a few things that you need to know in order to make your business a success.First and foremost, you have to be familiar with the product that you are going to promote. Knowing the product will assist you in achieving substantial profits in a short amount of time.You need to stand out among the other affiliates that promoting the same products. It is absolutely crucial that you set yourself above them to get noticed. An excellent way to do this is to write ebooks and short articles that potential customer can download from your site.When you write the ebooks and articles, make sure that they are full of information regarding your product. Make sure it is written clearly and in a way that is understandable.Make sure that you save the email addresses of the customer who download our information. Even if they do not purchase anything on the first visit, you will be able to send emails to draw the customer back to your site. More often then not, a customer will not make a purchase on the first visit it a site,Keeping contact information will assist you in making sales. When you follow up to a visit, you are letting the customer know that they will receive personal service.Creating a newsletter will keep the customers on your contact list up to date on any changes and incentives that may be associated with your product.Remember, when you start an affiliate business the only person who can make it a success is you. It all depends on how much time you want to devote to it.
With the end of their interest only payment options coming due, we are seeing the results of the lack of a good budgeting system. The practice of excessively living beyond our means by treating credit as a source of wealth and not looking to the future is at last being exposed for what it really is: a harsh road to foreclosure and bankruptcy.
What about the folks who are not $9,000 or even $1,000 in debt, and yet never seem to have much money, and even if or when they do, they never seem to be able to make it last or put it to it’s best use? What the about those who do have a lot of extra money? What about those who make several thousand dollars more per month than what their bills amount to? Are they in serious trouble as well? Sadly, I’m afraid so. What is amazing is that the cause is the same for the well off as it is for the poor: the lack of a good budgeting system.
The Traditional Approach
There are numerous “traditional” methods of budgeting, which include simply balancing your checkbook and making sure you keep track of all of the checks you write. There are software programs like MS Money and Quicken that allow you to see where your money is being spent. There are a few pencil and paper methods where you are told to write down everything you spend your money on and make sure that that never exceeds your monthly income.
The common trait among all of these methods; however, is that they take a pragmatic approach to budgeting. Rather than relying on principle, they treat each expense or “budget problem” as unique. As such, there can be many different methods to budget your money, and the success or failure of a particular system depends on whether “it works” (at least in the short-term) regardless of the long-term consequences of the method. It is not surprising, then, that we see several different popular methods all claiming to be “the right one” or “the best”.
These methods are also 100% reactionary. Which means you are passively reacting to your money, your bills, and your financial life in general. The system depends on you reconciling your checkbook, or your spreadsheet, or whatever you’re using after you’ve already made purchases. These methods can only record and track your spending history, not help you control your current and future financial situation. The result is a static report of your past.
If you find yourself in a position where you never seem to have any money or enough money at the end of the month, this is the reason why. You cannot simply react to the world around you and try to control it at the same time. This passive, reactionary approach to budgeting often leaves an individual wondering “what am I doing wrong? I know what my expenses are, I know how much money I make every week/month, why can’t I seem to get ahead?”
If you find yourself with a lot of “extra” money, it is entirely possible, and in fact probable that you are losing money in the form of opportunity cost. Often times, those who are well off don’t see the need for a budget. They perceive it as something only the poor or the less well off folks need. However, budgeting in principle is good, therefore it is good no matter who you are - rich, middle class, or poor. To illustrate this point consider the situation of the famous pop singer Elton John who, earning $25 million a year, was spending so much money that he had to take out a $40 million loan just to pay off his debts. Even if you are thrifty, budgeting can be the difference between controlling where and what your savings is doing (in terms of return on investment) or simply passively reacting to it.
Then, there are what I call the "inspirational" methods. These are budgeting "tips" which set unrealistic expectations on you such as "just cut back on going out to the movies" or "always buy the generic brand" when grocery shopping. These methods attempt to control your lifestyle and dictate your wants and desires. It is no surprise that, usually, these systems fail for most people because they present you with a dichotomy (a split) between "needs" and "wants" that makes life generally unpleasant. I'm not saying that there aren't things that you should cut back on or that you don't need to change your lifestyle in order to become financially successful. But, whatever changes you make to your life should be your choice, not your advisor's.
The “Unit Method”
The Unit Method of budgeting takes a fundamentally dif
It came out of the blue.My boss was called into her manager's office and, half an hour later and still in tears, she started clearing out her desk. To this day I don't know the official reason for her firing, but I suspect that she was the designated scapegoat for a project that was behind schedule and getting later. In truth, there was plenty of blame to spread around, but she got whacked - it still doesn't seem fair.It was a tragedy for her, but it was also bewildering and embarassing for the rest of her team and for her friends around the company. How should we react? In the event, we didn't handle it very well, but here's what I've learned since then:Don't pretend nothing happenedI suppose this sounds pretty elementary, but there's a strong urge to not get involved because it's pretty hard to share her pain. But she needs you to acknowlege that she's been fired and that it will affect you - it's one way of showing that you're a friend and you care.Don't ask about the detailsIf she wants to tell you why she was fired, she will; but it's not polite or helpful to pry into the matter. Accept the company's version until she feels safe enough to tell you her side of the story.Empathize, don't sympathizeIt's okay to say, "I'm so sorry that this happened to you, and I'll miss you." But don't say, "This happened to me once and I know just how you feel." In the first place, you don't know that your experience is anything at all like hers, and in the second place it sounds like a bid for attention. Tell her how you feelIf she's a good friend and you'll miss her, tell her so. If you're mad at the company, share that with her. Being honest about your emotions will help her manage her own anger and sadness.If she wants to talk, just listenShe may want to talk about the experience right away, or maybe next week, or perhaps never at all. But if she does want to tell you what happened, how she's feeling, and what she's worried about, be an active listener. Make sure you've got plenty of time to listen, find a private space, and give her your full attention while she talks. Try to be 100% present for her, not worrying about this afternoon's meeting. Respond if it feels appropriate, but don't feel that this needs to be a conversation - she mainly needs someone to really listen while she sorts things out.Stay in touch with herIf you're friends, be sure to stay in touch with her after s
The Traditional Approach
There are numerous “traditional” methods of budgeting, which include simply balancing your checkbook and making sure you keep track of all of the checks you write. There are software programs like MS Money and Quicken that allow you to see where your money is being spent. There are a few pencil and paper methods where you are told to write down everything you spend your money on and make sure that that never exceeds your monthly income.
The common trait among all of these methods; however, is that they take a pragmatic approach to budgeting. Rather than relying on principle, they treat each expense or “budget problem” as unique. As such, there can be many different methods to budget your money, and the success or failure of a particular system depends on whether “it works” (at least in the short-term) regardless of the long-term consequences of the method. It is not surprising, then, that we see several different popular methods all claiming to be “the right one” or “the best”.
These methods are also 100% reactionary. Which means you are passively reacting to your money, your bills, and your financial life in general. The system depends on you reconciling your checkbook, or your spreadsheet, or whatever you’re using after you’ve already made purchases. These methods can only record and track your spending history, not help you control your current and future financial situation. The result is a static report of your past.
If you find yourself in a position where you never seem to have any money or enough money at the end of the month, this is the reason why. You cannot simply react to the world around you and try to control it at the same time. This passive, reactionary approach to budgeting often leaves an individual wondering “what am I doing wrong? I know what my expenses are, I know how much money I make every week/month, why can’t I seem to get ahead?”
If you find yourself with a lot of “extra” money, it is entirely possible, and in fact probable that you are losing money in the form of opportunity cost. Often times, those who are well off don’t see the need for a budget. They perceive it as something only the poor or the less well off folks need. However, budgeting in principle is good, therefore it is good no matter who you are - rich, middle class, or poor. To illustrate this point consider the situation of the famous pop singer Elton John who, earning $25 million a year, was spending so much money that he had to take out a $40 million loan just to pay off his debts. Even if you are thrifty, budgeting can be the difference between controlling where and what your savings is doing (in terms of return on investment) or simply passively reacting to it.
Then, there are what I call the "inspirational" methods. These are budgeting "tips" which set unrealistic expectations on you such as "just cut back on going out to the movies" or "always buy the generic brand" when grocery shopping. These methods attempt to control your lifestyle and dictate your wants and desires. It is no surprise that, usually, these systems fail for most people because they present you with a dichotomy (a split) between "needs" and "wants" that makes life generally unpleasant. I'm not saying that there aren't things that you should cut back on or that you don't need to change your lifestyle in order to become financially successful. But, whatever changes you make to your life should be your choice, not your advisor's.
The “Unit Method”
The Unit Method of budgeting takes a fundamentally di
Bridging loans are the loans which are generally taken by borrowers to sort out any problem which might arise during the purchase of property. Bridging loans help the borrowers to tackle their short term financial requirement.Bridging loans as is implied are taken by borrowers for bridging the gap between the sale of one property and purchase of another property. Bridging loans are always secured against residential and commercial property. Usually you opt to buy another property only after selling your existing one property. But there might also be situation when you have to buy the property without first selling your property. In such circumstances bridging loans are the best option to utilize the opportunity well. You can borrow from ? 100000 to ? 400000 with bridging loans. With bridging loans the repayment term vary from 1 month to 12 months. You are supposed to sell your existing property within this time period so that you could payback your loan well at time.Bridging loans are also the best options for people who go to buy the property in auction, where requirement of fund is fast. Bridging loans are much quicker to arrange than a normal residential mortgage within 3 to 5 working days from making application to the approval. In bridging loans a first or second charge is taken against new or existing property and sometimes a combination of both. Apart from it all bridging loans are also applied for these reasons as for property refurbishment or conversion, in purchase of property where surveyor recommends retention and to stop bankruptcy.For getting bridge loans you might have to do meticulous research online. Bridging loans are given by lenders at varying terms, hence depending upon your property value and repayment capacity the loan amount varies. Online you have the comfort to grab the best available bridge loans to you. So now you can apply online for getting the benefits.
These methods are also 100% reactionary. Which means you are passively reacting to your money, your bills, and your financial life in general. The system depends on you reconciling your checkbook, or your spreadsheet, or whatever you’re using after you’ve already made purchases. These methods can only record and track your spending history, not help you control your current and future financial situation. The result is a static report of your past.
If you find yourself in a position where you never seem to have any money or enough money at the end of the month, this is the reason why. You cannot simply react to the world around you and try to control it at the same time. This passive, reactionary approach to budgeting often leaves an individual wondering “what am I doing wrong? I know what my expenses are, I know how much money I make every week/month, why can’t I seem to get ahead?”
If you find yourself with a lot of “extra” money, it is entirely possible, and in fact probable that you are losing money in the form of opportunity cost. Often times, those who are well off don’t see the need for a budget. They perceive it as something only the poor or the less well off folks need. However, budgeting in principle is good, therefore it is good no matter who you are - rich, middle class, or poor. To illustrate this point consider the situation of the famous pop singer Elton John who, earning $25 million a year, was spending so much money that he had to take out a $40 million loan just to pay off his debts. Even if you are thrifty, budgeting can be the difference between controlling where and what your savings is doing (in terms of return on investment) or simply passively reacting to it.
Then, there are what I call the "inspirational" methods. These are budgeting "tips" which set unrealistic expectations on you such as "just cut back on going out to the movies" or "always buy the generic brand" when grocery shopping. These methods attempt to control your lifestyle and dictate your wants and desires. It is no surprise that, usually, these systems fail for most people because they present you with a dichotomy (a split) between "needs" and "wants" that makes life generally unpleasant. I'm not saying that there aren't things that you should cut back on or that you don't need to change your lifestyle in order to become financially successful. But, whatever changes you make to your life should be your choice, not your advisor's.
The “Unit Method”
The Unit Method of budgeting takes a fundamentally di
People often ask about "hard money loans" and the truth is they should be called hard money loans because it would be hard to imagine paying the rates and fees associated with them.A hard money loan is a loan made by a non bank institution (often wealthy individuals or investor groups) to someone who has demonstrated a failure to manage their finances correctly resulting in an ultra low credit score (a middle credit score (a.k.a. FICO) of less than 500). Some lenders now even consider borrowers with credit scores less than 400!Here are the pros and cons:PROS:1. A borrower with ultra low credit scores can purchase a home. This can be a good thing or a bad thing. If they are ready to make a change and pay the mortgage on time, this COULD help reestablish the credit (more in cons). If they do not make timely payments, they will lose the house AND the LARGE down payment required.2. Tax savings for home ownership. Your interest should be tax deductible, even from a hard money lender, provided it meets all other IRS criteria. For more info read IRS Publication 936 (Home Mortgage Interest Deduction) http://www.irs.gov/pub/irs-pdf/p936.pdf3. Can be used to pay off a Chapter 13 bankruptcy or other major debt if you are a home owner. This should be a last resort and analyzed carefully as it may make things worse. Always discuss mortgage and finance matters with a qualified professional.4. Can be obtained to avoid foreclosure. As with #3, this needs to be analyzed with the help of an expert.CONS:1. LARGE Down payment. Hard Money lenders normally do not lend more than 70% of THEIR assessed value of a property. This means you will need to have a down payment (or equity) of at least 30% (some will go up to 80%).2. HIGH RATES & LOTS OF FEES. Hard Money Lenders are not your local neighborhood bank. They really aren't looking to help you get into a home; rather they are looking for a strong return on their investment. Currently, you will pay somewhere in the 12% range for an interest rate and at least 4 points in additional closing cost. (A point is 1% of the loan amount paid up front to ensure the investors minimum return on their money).3. MAY NOT BE REPORTED TO CREDIT BUREAUS. Your loan will most likely not be reported to the credit bureaus which means paying it will not help restore your credit in a traditional sense. If you end up with a hard money loan for a mortgage, I recommend keeping copies of your cancelled checks (not money orders) for your
If you find yourself with a lot of “extra” money, it is entirely possible, and in fact probable that you are losing money in the form of opportunity cost. Often times, those who are well off don’t see the need for a budget. They perceive it as something only the poor or the less well off folks need. However, budgeting in principle is good, therefore it is good no matter who you are - rich, middle class, or poor. To illustrate this point consider the situation of the famous pop singer Elton John who, earning $25 million a year, was spending so much money that he had to take out a $40 million loan just to pay off his debts. Even if you are thrifty, budgeting can be the difference between controlling where and what your savings is doing (in terms of return on investment) or simply passively reacting to it.
Then, there are what I call the "inspirational" methods. These are budgeting "tips" which set unrealistic expectations on you such as "just cut back on going out to the movies" or "always buy the generic brand" when grocery shopping. These methods attempt to control your lifestyle and dictate your wants and desires. It is no surprise that, usually, these systems fail for most people because they present you with a dichotomy (a split) between "needs" and "wants" that makes life generally unpleasant. I'm not saying that there aren't things that you should cut back on or that you don't need to change your lifestyle in order to become financially successful. But, whatever changes you make to your life should be your choice, not your advisor's.
The “Unit Method”
The Unit Method of budgeting takes a fundamentally di
Expenses exceeding finances is a common habit these days as cost of living is increasing. This sometimes affects our budget and leaves us with unpaid bills and debts as we are already over with our funds. Days are still left for our next payday to arrive. How will we bear expenses during those days? Going for standard loans at such time would not be a good idea as it may take lot of time. For such situations, you can get the financial support in the form of bad credit payday personal loans.A bad credit payday personal loan funds your expenses between your paydays. Also known as cash advance loans, no fax payday loans, cheque advance loans etc, these loans are short term loans and carry higher interest rates. But the faster approval for such loan covers up for this single drawback. It just takes 24 hours to get the money deposited into your checking account, hence perfect for your urgent needs. The other thing which attracts the borrowers towards such loans is that no credit check required for approval of such loans. These loans are generally secured by a post dated cheque for the next month’s pay.A person with bad credit suffers a lot while he is applying for standard loans. Lenders might deny him from getting the loan. But there is no such problem in case of a bad credit personal loan. People falling under the category of defaulter, arrears, CCJ's and IVA's, bankrupts, late payment makers and poor credit score holders can easily apply for a bad credit payday personal loan.Bad credit payday personal loan serves towards any of the following personal purposes:•Paying electricity and water bills•House rent, grocery bills•Credit card bills•Paying school fees of children•Expenses on unexpected car break down•Health expenses•Miscellaneous expensesAmount which you can borrow under a bad credit payday personal loan varies between ₤100 to ₤1000. You can get such amounts for a period of 7 to 14 days. At the end of repayment period you have the option to either pay repay the loan amount or extend the repayment period. Lenders charge certain fees if you want to extend the repayment term.Going for online option will provide you with the right platform to get a good deal in bad credit payday personal loan. Free loan quotes are available to the borrowers through several loan lending websites. Online comparison tools are also available through which you can compare these quotes and choose the best out of the lot. The application proc
Then, there are what I call the "inspirational" methods. These are budgeting "tips" which set unrealistic expectations on you such as "just cut back on going out to the movies" or "always buy the generic brand" when grocery shopping. These methods attempt to control your lifestyle and dictate your wants and desires. It is no surprise that, usually, these systems fail for most people because they present you with a dichotomy (a split) between "needs" and "wants" that makes life generally unpleasant. I'm not saying that there aren't things that you should cut back on or that you don't need to change your lifestyle in order to become financially successful. But, whatever changes you make to your life should be your choice, not your advisor's.
The “Unit Method”
The Unit Method of budgeting takes a fundamentally different approach to managing your money. Instead of taking the pragmatic, reactionary approach, we are going to take a pro-active approach. Instead of simply reacting to each individual expense, we are going to plan for them and budget them before they ever happen. Instead of passively monitoring our savings, we are going to control it. Instead of telling you what to cut back on, to start buying the generic brands, or how you should live your life, we are going to let you make that choice.
To begin with, you need to gather together everything you spend your money on. It may be helpful to grab a cheap notebook and write down everything you spend your money on for an entire week, or an entire month, just to get an idea of where all of your money is going. Write down the specifics as well as how much money you spend on each item. Don’t forget the date that you made the purchase.
The next step is to collect all of your regular expenses. Total up everything that you spend your money on in a year (including when you spend it). You want to look ahead 12 months because you don’t want to forget expenses that may only come once or twice a year - like taxes, or car insurance, etc. Some examples of regular expenses (just to get you thinking) are:
- Taxes (if using gross income or you are self employed)
- Mortgage Payment
- Second Mortgage payment
- Household (yard)
- Gas
- Elect/Water/ Gar
- Gas (for your automobile)
- Auto Insurance
- Maintenance (car maintenance like oil changes, tune ups, etc.)
- Automobile Registration
- TV
- Life Insurance
- Loans (car loans, personal loans, educational loans)
- Credit Cards
- Babysitting/Daycare
- Clothing
- Grocery
- Eating Out
- Nonfood grocery items (cleaning supplies, toilet paper, soap, laundry detergent, etc.)
- Medical Bills
- Hair cut/personal care items
- Charitable Donations
- Emergency Fund
- College Fund
- Dry Cleaning
- Birthday gifts
- Christmas gifts
- Holidays and other gifts (i.e. Valentine’s Day)
- Maintenance (home repairs, etc.)
- Retirement Savings
- Magazine Subscriptions
- Membership dues (elks club, moose, club, or other social organization)
- Dates (going out to “dinner and a movie” with your sweetheart)
- Video rentals
- Entertainment/”Play Money” (i.e. any hobbies)
After you’ve gathered all of your expenses together, it’s time to do some thinking. The method that we will be using to develop your “bulletproof” budget actually involves two processes: differentiation and integration. What you need to do is try to identify similarities among two or more concrete or specific expenditures and differentiate them from the rest of your expenditures. This should be done as simplistically as possible. Then, we need to integrate these similar expenditures while omitting their specifics and thus forming a new “unit”. This new “unit” becomes the basis for our budget and will allow you to easily track and control everything in your financial life.
The list I gave you above already accomplished part of the job for you. I merely asked you to do this process in reverse to come up with the concretes. For example, if you look at your expenditures and you find that you have a Discover card, 3 Chase cards, a Capital One card, and a Visa - we would group these together by their similarities, omit their specifics and form a new "unit" around them. From now on all credit cards can be filed under this “unit”.
But, what do we call this "unit"? Do we simply refer to the unit as "credit ca
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