The summer is upon us and the temperatures continue to rise. Welcome back to wedding season and all the spending that comes with it. We all know the folks footing the bill for a wedding these days are bearing an increasingly large financial burden. What of those who attend weddings as guests? Travel, hotel, clothing, and gift expenses add up fast. Wouldn’t everyone come out ahead if the happy couple just flew to Vegas and had Elvis marry them?
The average cost of a wedding these days is $20,398. If you figure that a typical wedding event lasts for about six hours – from ceremony through reception – that’s about $3,400 per hour! If you’re interested in discovering the cost of a typical wedding in your area, visit CostofWedding.com.
Think about the financial implications of being a guest at a wedding. How far do you have to travel? Will you fly? Are you in the wedding party? What will you spend on a gift? Is your presence present enough? Where will you stay? Are you paying for meals?
As with anything else, the best place to start is with a budget. As you learn of a couple’s pending nuptials a few months in advance of the wedding, begin preparing your plan by totaling your anticipated expenses. The costs of travel, lodging, gift, and food must be included. Take that total and divide the amount by the number of months remaining until the wedding. If you save that dollar amount each month, you’ll be in great shape to enjoy the ceremony, do the Macarena at the reception, and not have to drag the couple’s commemorative sachet bag of personalized M&Ms home along with a bulging credit card bill.
What if there isn’t as much advance notice? Then it’s decision time. We can either decide to spend a little extra on a gift because we choose not to attend or vice versa. Or we could plan to attend while keeping lodging, food, and gift costs to a minimum. On a tight gift budget? If you find out where the happy couple is registered, buy all the serving utensils or dish towels you can; you can fill a gift box with items like this for less than $20.
Marriage is supposed to be the union of a man and woman committing their lives to each other in front of all their loved ones. With a little forethought, you’ll enjoy supporting the newlyweds without breaking the bank.
Showing posts with label Budget. Show all posts
Showing posts with label Budget. Show all posts
Wednesday, June 24, 2009
Wednesday, June 17, 2009
Want to Save some Money?
In this week’s Sunday edition of The Wall Street Journal, Brett Arends wrote a short article about saving $5,000, fast. Before we begin saving any money, though, we have to make a choice. Making a choice means taking responsibility.
There are three uses of money: we give it, save it, and spend it (the average American was brought into this world already knowing how to do the latter). In order to give or save any money, we must create a margin in our lives. Creating a margin requires that we live on less money than we make; this is the choice we make. Novel idea, I know, but when 70% of the country lives paycheck-to-paycheck, we have to lay this foundation first.
So what can you do to save some money? First, create a spending plan – or budget – you must know where every dollar is going in order to allocate more toward savings. Likewise, with a budget you’ll know exactly where each of those saved dollars is going so they don’t vanish. The vast majority of those who create a spending plan – and execute on it – feel like they get a raise because each dollar is accounted for and has a purpose.
Look at your grocery and eating out spending categories. Our rule-of-thumb is budgeting $150 per person per month in the household. Consider great resources like Angel Food Ministries to get groceries for more than 50% off. Pass on one restaurant meal each month and you’ll save around $600 a year.
If you’ve gone for more than two years without having your insurance policies re-quoted, it’s time to make some phone calls. If you have a solid emergency fund in place, increase your deductibles. Auto, homeowner’s, and life premiums are constantly being evaluated and updated. Just because you’ve been loyal to one provider doesn’t mean you’re getting the best rates. Consider contacting an independent agent who can find the best rates at a variety of providers. Don’t be surprised if doing this saves you anywhere from $300 to $1,500 in premiums this year.
Once you get the ball rolling, you’ll find plenty of other categories in your budget to generate savings. Look at your cable and cell phone packages, estimate savings by packing a lunch, and try brewing your own coffee at home instead of buying it on the run. Craigslist and eBay are your friends; sell what you know you don’t need and generate some cash.
All of these lifestyle and financial changes require a choice. Having a few thousand extra dollars in the bank would be sweet affirmation of a choice well made.
There are three uses of money: we give it, save it, and spend it (the average American was brought into this world already knowing how to do the latter). In order to give or save any money, we must create a margin in our lives. Creating a margin requires that we live on less money than we make; this is the choice we make. Novel idea, I know, but when 70% of the country lives paycheck-to-paycheck, we have to lay this foundation first.
So what can you do to save some money? First, create a spending plan – or budget – you must know where every dollar is going in order to allocate more toward savings. Likewise, with a budget you’ll know exactly where each of those saved dollars is going so they don’t vanish. The vast majority of those who create a spending plan – and execute on it – feel like they get a raise because each dollar is accounted for and has a purpose.
Look at your grocery and eating out spending categories. Our rule-of-thumb is budgeting $150 per person per month in the household. Consider great resources like Angel Food Ministries to get groceries for more than 50% off. Pass on one restaurant meal each month and you’ll save around $600 a year.
If you’ve gone for more than two years without having your insurance policies re-quoted, it’s time to make some phone calls. If you have a solid emergency fund in place, increase your deductibles. Auto, homeowner’s, and life premiums are constantly being evaluated and updated. Just because you’ve been loyal to one provider doesn’t mean you’re getting the best rates. Consider contacting an independent agent who can find the best rates at a variety of providers. Don’t be surprised if doing this saves you anywhere from $300 to $1,500 in premiums this year.
Once you get the ball rolling, you’ll find plenty of other categories in your budget to generate savings. Look at your cable and cell phone packages, estimate savings by packing a lunch, and try brewing your own coffee at home instead of buying it on the run. Craigslist and eBay are your friends; sell what you know you don’t need and generate some cash.
All of these lifestyle and financial changes require a choice. Having a few thousand extra dollars in the bank would be sweet affirmation of a choice well made.
Wednesday, April 1, 2009
The Tax Man Cometh and... Giveth?
April showers bring May flowers – so they say – which gives us something to look forward to. April also ushers in the annual deadline we all love bumping up against. It’s tax time again.
Many of us will receive tax refunds this year. I’m not a huge fan of refunds simply because I want that money in my pocket throughout the year rather than sitting in the government coffers as an interest-free loan. Please recognize that if you divide your refund by 12, that’s how much more you could’ve been bringing home each month last year. We can’t change the past, though, just the future. So what is the best use of those refunds anyway?
Given the pervasive attitude of fear in the economy right now, I imagine some are viewing their refunds as an unexpected boon – kind of like finding a $20 bill in a pants’ pocket that you completely forgot about. Fear is a terrible motivator – often times causing us to make brash decisions without a solid basis in reality. The reality is that we can’t control everything around us, but we must have a plan for what we do have authority over.
Start with a budget for your refund. Of course, you definitely need a monthly budget – where every dollar is spent with purpose before each month begins. Now we’ll create a plan specifically for the tax refund. Take a look at the Seven Financial Freedom Steps.
Do you have a beginner emergency fund? If you don’t have around $1,000 in a savings or money market account, then use your tax refund to open and fund an account like this. There’s no sense in throwing caution to the wind – unexpected expenses happen all the time, it’s called life. Money Magazine tells us that 78% of Americans will have a major negative financial event in any given ten-year period; that’s plenty of reason to be prepared. Likewise, if we’re going to get out of debt for good, we have to stop going into debt for these expenses, which aren't really "unexpected" after all.
Are you aggressively paying off your debt? After you’ve gotten your beginner emergency fund in place, go ahead and pay something off with your tax refund. Believe me, it’s going to feel really good! Use the debt snowball process: list all your debts from smallest to largest, pay minimums on everything except the smallest – throw as much at that one until it’s paid off. After that, move on to the next one and repeat until free of consumer debt.
If you’ve already dumped your consumer debt, find a creative way to give a portion of your refund to help someone else. Use the rest to top off your full emergency fund of three to six months’ expenses, invest toward retirement and your kids’ college, or pay down the principal on your house. The most important thing is to have a plan for this money; without one it’ll sprout legs and wander out the door.
To estimate your 2009 taxes, visit the IRS Withholding Calculator.
Many of us will receive tax refunds this year. I’m not a huge fan of refunds simply because I want that money in my pocket throughout the year rather than sitting in the government coffers as an interest-free loan. Please recognize that if you divide your refund by 12, that’s how much more you could’ve been bringing home each month last year. We can’t change the past, though, just the future. So what is the best use of those refunds anyway?
Given the pervasive attitude of fear in the economy right now, I imagine some are viewing their refunds as an unexpected boon – kind of like finding a $20 bill in a pants’ pocket that you completely forgot about. Fear is a terrible motivator – often times causing us to make brash decisions without a solid basis in reality. The reality is that we can’t control everything around us, but we must have a plan for what we do have authority over.
Start with a budget for your refund. Of course, you definitely need a monthly budget – where every dollar is spent with purpose before each month begins. Now we’ll create a plan specifically for the tax refund. Take a look at the Seven Financial Freedom Steps.
Do you have a beginner emergency fund? If you don’t have around $1,000 in a savings or money market account, then use your tax refund to open and fund an account like this. There’s no sense in throwing caution to the wind – unexpected expenses happen all the time, it’s called life. Money Magazine tells us that 78% of Americans will have a major negative financial event in any given ten-year period; that’s plenty of reason to be prepared. Likewise, if we’re going to get out of debt for good, we have to stop going into debt for these expenses, which aren't really "unexpected" after all.
Are you aggressively paying off your debt? After you’ve gotten your beginner emergency fund in place, go ahead and pay something off with your tax refund. Believe me, it’s going to feel really good! Use the debt snowball process: list all your debts from smallest to largest, pay minimums on everything except the smallest – throw as much at that one until it’s paid off. After that, move on to the next one and repeat until free of consumer debt.
If you’ve already dumped your consumer debt, find a creative way to give a portion of your refund to help someone else. Use the rest to top off your full emergency fund of three to six months’ expenses, invest toward retirement and your kids’ college, or pay down the principal on your house. The most important thing is to have a plan for this money; without one it’ll sprout legs and wander out the door.
To estimate your 2009 taxes, visit the IRS Withholding Calculator.
Tuesday, September 2, 2008
Raising Your Income to Become Debt Free
During the radio show this past weekend we talked about getting out of debt. Do you REALLY want to be debt free? Do you REALLY want to accomplish your long-term goals, build wealth, and become a better giver? What holds you back?
We have clients that leave our offices and immediately brainstorm what they can pull together for a yard sale by the next weekend. Some clients are out doing side work painting houses and fixing air conditioning. Others are delivering pizzas or sorting boxes for UPS and FedEx.
There are only two ways to make your monthly budget balance: increase your income, or decrease your outgo (expenses). Debt payments raise monthly expenses, so increasing income is the best way to speed up the debt snowball process.
So...do you REALLY want to be debt free? Life has plenty to offer, from fulfilling careers to making a difference in the lives of those around you by freely giving. Don't let income be an excuse that prevents you from finding your path to financial freedom.
We have clients that leave our offices and immediately brainstorm what they can pull together for a yard sale by the next weekend. Some clients are out doing side work painting houses and fixing air conditioning. Others are delivering pizzas or sorting boxes for UPS and FedEx.
There are only two ways to make your monthly budget balance: increase your income, or decrease your outgo (expenses). Debt payments raise monthly expenses, so increasing income is the best way to speed up the debt snowball process.
So...do you REALLY want to be debt free? Life has plenty to offer, from fulfilling careers to making a difference in the lives of those around you by freely giving. Don't let income be an excuse that prevents you from finding your path to financial freedom.
Saturday, August 23, 2008
Clean Up, Aisle Nine: Broke Customers
A recent survey by analytics firm Precima showed that 82% of U.S. consumers intend to keep cooking at home instead of eating out even after the economy improves and they have more disposable income. On top of that, 84% of consumers plan to keep hunting for specials in grocery store fliers, and 78% are making fewer trips to the store to save on gas.
There’s no doubt that gas and consumer goods price inflation has been running wild during the past year. Americans are rapidly changing their behaviors to make ends meet and keep food on the table. Is inflation causing financial strain, or revealing deeper problems? (Is this a “chicken and egg” question?)
70% of Americans live paycheck to paycheck according to the Wall Street Journal; our national savings rate hovers around 0%. Perhaps rising consumer prices are enough to topple the financial house of cards so much of the country lives in. Rising prices expose the overextended. A written monthly budget allows you to take control of your money and reinforce your financial foundation.
Here are a few ideas for your next grocery store trip: 1) don’t shop hungry, you’ll buy things you don’t need; 2) stick to a list; 3) only use coupons for items you use (no sense stocking up on 4-for-1 canned garbanzo beans if you don’t eat them); 4) use CASH! Studies show we spend 12%-18% more when paying with plastic. Establish a monthly grocery budget using a cash envelope to monitor your spending. It’s easy: when the cash is gone, the only places to “shop” are your pantry and freezer.
Confronting your financial situation honestly is the first step on the path toward financial freedom. Don’t miss your opportunity to take control of your life and money today!
There’s no doubt that gas and consumer goods price inflation has been running wild during the past year. Americans are rapidly changing their behaviors to make ends meet and keep food on the table. Is inflation causing financial strain, or revealing deeper problems? (Is this a “chicken and egg” question?)
70% of Americans live paycheck to paycheck according to the Wall Street Journal; our national savings rate hovers around 0%. Perhaps rising consumer prices are enough to topple the financial house of cards so much of the country lives in. Rising prices expose the overextended. A written monthly budget allows you to take control of your money and reinforce your financial foundation.
Here are a few ideas for your next grocery store trip: 1) don’t shop hungry, you’ll buy things you don’t need; 2) stick to a list; 3) only use coupons for items you use (no sense stocking up on 4-for-1 canned garbanzo beans if you don’t eat them); 4) use CASH! Studies show we spend 12%-18% more when paying with plastic. Establish a monthly grocery budget using a cash envelope to monitor your spending. It’s easy: when the cash is gone, the only places to “shop” are your pantry and freezer.
Confronting your financial situation honestly is the first step on the path toward financial freedom. Don’t miss your opportunity to take control of your life and money today!
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