Personal Finance Tips

Budgets Don’t Work

I don’t believe budgets work for the long run. We have our unique and different ways of doing budgets. Some of us allocate certain amounts for each expense category. Some go by envelop ideas such as putting money in different envelops for different expense categories, and spend money from these envelops based on circumstances. The problem with budgeting is that we usually stick to it for a couple of months and then get bored and get rid of it. Although I don’t believe in budgeting, I do believe in tracking expenses. Why and how you should track your expenses? Let’s talk about it.

Track Your Expenses

Tracking expenses gives you a visualization of where your money is exactly going. You need to know this to cut unnecessary expenses and increase your savings. You can do all sorts of calculations and thinking in your mind to figure out where your money is going – but the real picture may not be the same as your mind tries to depict. Don’t be surprised if you see a very different picture than what you had in your mind. Spending just a few dollars here and there daily can add up to a large amount at month’s end and tracking expenses will show you how powerful it can be to cut once-daily visit to your coffee shop. Tracking expenses will gradually help you make better decisions.

How long should you track your expenses?

How long should you track your expenses? It all depends. You can do it for three months, one year or for good. If you are looking to take immediate action on cutting unnecessary expenses, three months of tracking will give you a fair idea. If you want an in-depth financial picture, I would recommend tracking for four to six months. If you want to keep track of your changing patterns of spending behaviour and make adjustments accordingly to meet your financial goals, I would recommend tracking your expenses on a continuous basis.

Personal Finance Software

Now, here comes the main question – What financial software you should use to track your expenses? Personal finance software programs like Quicken and Microsoft Money are able to keep track of your spending. However, I recommend a simple and easy to use web-based program called Expensr. Expensr keeps track of your income and expenses and tells you where your money goes. It is very simple to use and let me describe some basics you need to know.

Sign up for a free account. On the main page, on the top left, you will see five tabs. These tabs are Home, Accounts, Analysis, Budget and Community. Accounts and Analysis tabs are the ones you will be using most. Enter all your income and spending daily under Account tab. You can create multiple categories to categorize you entries. Entering an item is easy, and you should be able to do it in a snap. Analysis tab shows how much you are spending in each category. You can view this either in a pie chart or in a bar graph. Charts or graphs show spending trends. Trends can be used to see how your spending behaviour has changed over time, and you make adjustments accordingly.

Expensr has many other features. I mainly use it to keep track of my spending and income, and to plot graphs to visualize my trends. If you are looking for simple, easy-to-use but powerful personal finance software, expensr is your answer.

NB – Expensr is now Moneystrands. Read my Personal Finance Software Review to find out more about financial software.

Whether they’ve never left the nest or, like so many in the “boomerang generation, they’re returning home after some time away, you’re likely struggling to find ways to make the relationship with your adult children living at home work. The good news is, grown-up kids can live successfully at home – but only if you avoid some critical mistakes right from the start (or correct them right away!).

1. Encouraging rebellion by taking up parenting right where you left off

It may be hard to remember sometimes, but adult children living at home are still adults. A sure way to set yourself up for conflict is to over-parent them.

Adults who are over-parented and over-supervised will rebel as quickly as teenagers, so you need to develop some strategies to establish a new adult-to-adult relationship – quick!

2. Stealing your child’s independence by giving them a “free ride”

It can be very tempting to try to help your “boomerang” kids by covering all of their living expenses – especially if they’ve returned home after a personal crisis like losing a job or the end of a relationship.

But why should they ever learn to take care of themselves when you’re all too eager to do it for them? Even a short-term stay should require your “boomerang” kids to contribute to household expenses and chores. The best way to set these expectations clearly is by working out a household budget, so everyone is on the same page in terms of the extra costs your adult child is causing at home.

3. Assuming that since you’re all grown-ups, there’s no need for rules

If you think you don’t need ground rules for your adult children living at home, consider how you’d feel about them smoking, drinking, or using drugs in your home – or even bringing a lover to stay overnight.

As strange as it may sound, experts agree that the best way to discuss – and stick to – these household rules is to draft up a customized contract between you and your “boomerang” kids.

4. Compromising your own financial situation to support your adult child

With adult children living at home, you’ll be using more heat, hot water, and electricity. You’ll need to buy more groceries. In fact, all your household expenses will increase. But no matter what you do, do not put your own financial future on the line to support your adult child. You do neither yourself nor your children any good by creating extra debt or obligations for yourself.

If you don’t know where the money to make the situation work will come from, you need to think long and hard about whether you can help your adult child by having them live at your home.

5. Assuming they will leave when the time is right

The best way to ensure your “boomerang” kids leave within a reasonable timeframe is to establish a clear timeline for their stay and milestones to help them reach independence.

Most adult children living at home don’t plan to stay forever. But if they don’t have any clear idea of when they need to leave – or how they’ll work towards being able to do so, they may end up stuck.

By establishing a timeline with clear milestones, you can empower your adult child to leave the nest. If you don’t create a timeline, they may end up calling your house “home” for much longer than you – or even they – had planned.

Final Thoughts

Having adult children living at home can be extremely challenging for everyone involved. But there are some simple ways to make the situation easier for everyone, and avoiding these 5 dangerous mistakes is a key step.

Remember that a successful relationship with your adult child really boils down to establishing good ground rules and managing expectations. One of the best ways to do that is to create a contract that everyone in the home will stick to.

Who would have thought that a brand new diet has appeared out of nowhere as part of the great live Pay Off Your Mortgage in 3 Years or Less Challenge.

The challenge is being undertaken to raise awareness for the need to introduce financial education into mainstream schooling sooner rather than later. A snapshot of the current economy shows the result of not having it all too clearly as we experience the fall out from over zealous credit card lending and the appearance of a looming recession.

The exciting part of revisiting the challenge that I undertook successfully some years ago is that I have discovered a brand new diet. As part of the Pay Off Your Mortgage Challenge I have been keeping a watchful eye on the groceries, and more importantly the grocery budget and portion control inflicted by the measures required.

To my amazement that in line with my grocery budget shrinking, so is my waistline. Four weeks into the challenge and I have shed five pounds of unwanted flab. So what is the reason for this medical marvel you may ask?

My research shows that the money saver diet is all about not super sizing anything. Instead of bulk quantities, it is carefully measured ones. Without stocking up on large combination snack packs, it is been carefully counted essentials and the results are amazing.

The shrinking waistline factor is further enhanced by shopping at local markets for exact requirements of fruit and vegetables and trips to the local butchers for meats, all packaged in paper bags so we are being environmentally friendly too.

It puts a whole new angle on the potentially boring subject of simply saving money, that conjures up all sorts of feelings of somehow losing out on things, or feeling depressed about not being able to afford things, if the by product of saving money creates a super slim fit body who would not jump at the chance and start today.

The elements that combine to make the money saving diet work are
Plan your meals for the week ahead, including breakfasts and lunches on the go if necessary. Make a budget for each week and aim to better it. Shop for your groceries online if at all possible as this reduces impulse buys which usually end up straight on the waistline. The saying a moment in the mouth a month on the hips springs to mind. Ignore anything that is a bulk buy, or buy one get the next one free you usually end up eating more than you need. By keeping tighter control on your budget, and planning ahead, you will be surprised how less stressed you are about everything and as you feel those jeans feeling a little bit looser every week you stay on the challenge, you will feel motivated even more to continue.

The most amazing part of gaining mortgage freedom is being able to sustain a healthier more active and less stressful life. You can follow the challenge live week by week on the internet.

As in any foreign country, it is wise to follow precautions for safety and security when on a safari in Kenya. When on a Kenya safari holiday there are a few things to remember, not to walk in the bush without your guide, not going too close to or feeding the animals and not swimming in rivers in case of crocs and hippos.

Your guide should explain these kinds of safety issues, but other things to factor into your safety concerns include Kenya holiday insurance, medical preparations, looking after property and money and choosing the right kinds of food and drink. Here are some tips on how to keep safe on your Kenya safari holiday.

Money Tips

Travellers’ cheques and major credit cards are generally accepted in Kenya. A small quantity of US cash, preferably, is useful. Kenya holiday makers should try to carry only a little cash with them – make sure you’re not an easy target for thieves. Only authorized dealers and banks are allowed to change currency. It is worth changing money at the banks or bureaus on arrival at international airports or in the major towns, where the rate of exchange is more favourable than those offered at lodges and hotels.

Security Precautions

It is important to have a record of your passport number, airline tickets and travellers’ cheques when you go on a safari in Kenya, and to ensure that these items are kept in a safe place separate from the originals. Make use of your hotel safety deposit box for valuable items. Avoid transactions with by-standers unless accompanied by your tour driver/guide. Beach traders can be a nuisance but they will leave you alone as soon as you firmly but politely decline any trade with them.

Medical Precautions

Malaria is endemic to much of East Africa, consult a doctor or health department for the latest anti-malaria precautions well in advance of your Kenya safari holiday, as well as finding out about any other recently recommended jabs or tablets.

Bring plenty of mosquito repellent and wear trousers, socks and perhaps long sleeves in the evenings to avoid being bitten. Most rooms, even tents, have mosquito nets or mosquito proofing and are sprayed by hotel staff before night falls. Beware of sunburn even at high altitudes where the air feels cool. Bring plenty of sun creams, hats and suitable clothing on your Kenya safari holiday.

Food & Drink in Kenya

Bottled mineral water is readily available all over Kenya and it is generally recommended that Kenya holiday makers steer clear of water other than this. There are no restrictions on the sale or consumption of alcohol in Kenya and you will find a good selection of local beers and soft drinks available, as well as imported wines, beers and spirits in many places, although these can be expensive. The quality and value of food in Kenya is generally very good. However, do eat sensibly, particularly in the first few days of your Kenya safari holiday.

Kenya Holiday Insurance

Medical insurance is strongly recommended. Nairobi has two first-rate hospitals with excellent emergency facilities. In addition to this, travel insurance covering loss of baggage, third party liability, cancellation and curtailment, etc. is also recommended for Kenya safari holidays.

The wedding budget is a guide for every couple. It details out the plan, finances and activities that will govern their event. The budget is almost a year’s activity. It must be begun early so everything about the ceremony can be adequately taken care of. The budget is to essentially list out money allocated to each part of the wedding. We list some important items every budget must necessarily have.

The location of the wedding must be prime on the budget. The couple would have to ascertain the cost and compare it with other similar facilities in the area. The import of the plan is to reduce cost at all levels. You may want to find a hall that has some decoration already so you would need a minimal d