Simplifying the way you manage your finances can make sticking to a budget much easier. Limiting the amount of time it takes to actually manage your budget will make it more likely that you will do it. With the right technique it should only take you 20-30 minutes a week to stay on track.

The most time-consuming part of the process is the actual setting up of the budget. So don’t try to do this with a house full of kids and other relatives over the holidays. Allocate the time and place, and stick to it. If necessary put a “Do not disturb” sign on your door, turn off your phone, and disconnect from the internet (eliminate distractions!).

While there is a plethora of software to simplify the preparation of a budget, a simple spreadsheet is all you need. Don’t complicate the process by having to learn a new program.

A good way to start is to assemble any bills and receipts you can get your hands on. A credit card statement is perfect if you charge most of your purchases. Begin your document by listing your monthly income and expenses. Estimate, in round numbers, what you spend on each expense every month. You don’t need to be precise, but err on the side of more rather than less with expenses.

Be sure to include:

* Mortgage/rent payments
* Utilities costs (electricity, gas, phone, water etc)
* Groceries
* Food
* Transport
* Car expenses
* Clothing
* Education expenses
* Entertainment
* Gifts

A Simple Budget – The 60% Solution

One of the simplest types of budget is called the “60 Percent Solution”. In essence, this budget aims for you to fit your monthly expenses within 60% of your gross income.

This will allow you flexibility for long and short term savings, spending money and retirement planning. These can be what often break a budget, because people fail to budget for them.

While the percentages will vary depending on your circumstances, consider the guidelines below:

Allocation of Income

60% – Monthly expenses
Housing, clothing, food, transportation, utilities, insurance, communication.

10% – Retirement
In some countries this forms part of a compulsory superannuation plan, but if it doesn’t for you, you should have this deducted automatically from your paycheck.

10% – Debt reduction or long term savings
A good financial adviser will recommend how to invest this money, which will also serve as an emergency fund.

10% – Short term savings
These are the funds set aside for those every now and then expenses: birthday and Christmas gifts, car maintenance or repairs, uninsured medical expenses, appliances, home maintenance.

10% – Pleasure
This will include recreation, eating out, movies or whatever you want, without the worry of breaking your budget.

Having a household budget with fewer categories will make it much more manageable and help you to realise your financial goals.

A Simple Household Finance Budget is a post from: Smart Money Mindset.com

Every year, getting out of debt ranks in one of the Top 10 New Year’s resolutions.

In the uncertain, and difficult, economic situation we have experience in the last two years, it will certainly be there again for 2010.

Poor spending and saving habits can be tough to break, but their correction is vital if you are to eliminate things like credit card debt and home equity loans. Many people who have, as a result of unemployment caused by the financial crisis, had to rely heavily on these, but 2010 is the year to make the decision to stop, and to take massive action to turn things around.

Here are some quick things that you can do to get out of debt in the New Year:

1. Set your goal: Give it power by writing it down and displaying it somewhere obvious, like on your refrigerator door.

2. Be honest: Acknowledge your debt

3. Identify your dream: buy a home, have retirement funds, pay for your children’s education

4. Share: Empower your family to be part of the cost-saving process

5. Get help: Consulting a qualified financial adviser should not be considered an expense. It is an investment. There may be free debt counsellors who can give you some initial advice, but a professional is needed for long term planning.

6. If you are behind in payments call your creditors. Negotiate a payment plan. The worst thing you can do is pretend that the problem doesn’t exist. If your payments fall behind, your creditors will assume the worst, if they have not heard from you

7. Cut back spending to essentials, food, essential clothing, shelter and transport. Remove snack foods and drinks from your life for now, and don’t eat out. Terminate your cable TV contract if you can, you WILL survive without it.

8. If you purchase lottery tickets, stop. If you smoke, stop. If you buy cappuccino every day, stop.

9. If you are able to walk to work by leaving home 30 minutes earlier, do it (good for your pocket and waistline).

10. Have your wages paid directly into your bank account, and only take out what you need as you need it. Have your mortgage and utilities automatically deducted from your account.

11. Find ways to make more money, either with a second job, or taking an inventory of your possessions and selling some. If you haven’t worn that dress/suit for 2 years, you probably won’t again, sell it online or via a garage sale. Uncluttering your life is very therapeutic.

It is so easy to make getting out of debt your New Year’s resolution and breaking the task up into small, bite-sized pieces, will make it one you can keep.

Getting Out Of Debt as a New Year’s Resolution is a post from: Smart Money Mindset.com

Making sure you get paid what you are worth can be difficult, especially if you have just been offered a great job. But don’t be shy, and remove the myths about salary negotiation from your brain, because if you don’t, they can prevent you from getting the salary you deserve.

I used these principles recently to get a friend from an initial offer of 2.8% to a 19% pay rise on a new position – yes, in the middle of a recession! That’s almost 7 times more! She was extremely disappointed with the first offer she received, but too polite to ask for more – until she talked to me of course! Please be aware of these myths, and don’t fall victim to them:

Myth 1: Aim for the highest salary

When you look at your life, you will probably realise that cash is not always the most important thing. Consider carefully other benefits, bonuses and quality of life that a position affords. The job with the highest salary might enslave you and leave little time for home, hobby or sport activities.

Myth 2: Employers don’t like negotiating salaries

Most employers have respect for a person who is firm in the way he values him/herself. There is no harm in justifying to an employer why you deserve more.

Myth 3: If you don’t indicate your expected salary, your application won’t be reviewed

You will sometimes find “expected salary” to be a requirement in job ads. By quoting a figure, be it too high OR too low, you can either eliminate yourself from consideration, or lock yourself into a salary that is below what you really want.

If you are qualified and meet all other criteria, employers will not ignore your resume because it doesn’t list a salary range.

Myth 4: There is no room to move

If an employer believes you are the perfect candidate for the job, and the offer on the table is below your expectations, it is rare indeed that they have no room to move. Exceptions are possible.

Myth 5: A “starting salary” is OK to begin with

Don’t fall for this one! Most salary increases are negotiated on your current wage. Accepting a lower “starting” salary, without any negotiation, will impact your negotiations for years.

Myth 6: Asking for less improves your chances

Few employers hire on salary alone, and his strategy can sometimes backfire by devaluing you in the eyes of the company, and actually decrease your chances of landing the job.

Myth 7: Agree to the offer ASAP

Don’t believe that if you don’t jump at an offer, an employer will rush to make the offer to someone else. Get the offer in writing, and if you have any doubts, take at least 24 hours before accepting. Understanding that you have room to negotiate will help you to get the salary you deserve – the first offer from an employer is rarely the last and final offer – salary negotiation is part of the process.

Know Your Value

Knowing your own value is one of the most important skills to have generally, but being able to realise it is even more important. Look at the value you add and expect to be compensated accordingly. If you are unable to get the compensation (monetary and non-monetary) you think you deserve there are always alternatives – you are more resourceful than you dare to let yourself think!

Salary Negotiation – How I Helped a Friend Get a 7 Times Larger Pay Rise is a post from: Smart Money Mindset.com

Sometimes life throws you a surprise… like being given two days notice that you’re booked in to give a lecture to 35 students at the London School of Economics! Which just happened to sell out in 2 mins… no pressure then…

So here’s the interesting thing, not that I had the lecture arranged – it was pencilled in but never confirmed – but that it sold out so fast. An email was sent to students, who won’t necessarily be sat by a computer checking email (like the rest of us at work!), and 35 people responded withing 2 mins.

The title of the session is “Recession-Proof Yourself”

And however much I’d like to think the interest was due to my dashing good-looks (ok,ok, no picture was sent with the email) it actually points to something more insightful – A lack of financial education and resources for young people.

Now these students will be the brightest of the bright, doing degrees in Economics, Management, Business and so on, but they will not have knowledge of some basic financial principles – because no-one’s taught them. I know, because after 4 years of financial training at university I was still £22,000 in debt and had no idea how to manage my money!

The other sad thing is that those who had tried to seek out financial advice were probably given what could best be described as average information, or even worse. For me the first big financial step I took was opening a current account and yes, taking advantage of the interest-free overdraft. And then being financially astute as I was, going to another bank and doing exactly the same thing! Yep, I had a £3,100 maxed out rolling overdraft the day I left uni.

Drug-Dealing and Debt Conditioning

I often talk about how debt is pushed in a similar way to drugs – starting with the “free sample” – and this is how debt is pushed to students with the interest-free overdraft. Before long as students we get conditioned to thinking it is perfectly normal to be thousands of pounds in debt.

Now these students will be the high-earners of tomorrow… who having been conditioned into debt-driven lifestyles at univeristy will continue to rack up increasing levels of mortgage, credit card and personal debt based on multiples of their increasing income. Without realising it they will pay thousands upon thousands more for their possessions than if they hadn’t use debt to finance their lifestyles.

So hopefully the lecture today will be a first step in getting these students to seek out better and more effective ways to manage their money. I’m not the only one talking about this so even if not with me, the lecture should hopefully give them a nudge in the right direction! I know I could have done with it when I was in their place.

Lecturing at the London School of Economics today, Interest-Free Overdrafts and Drug Dealing – Eeek! is a post from: Smart Money Mindset.com

In the lead up to Christmas we are always bombarded with sales messages. “Save 50% here!”, “Buy one get one free!”. These offers come to us with the promise of “saving” us money. Are you really saving money? Probably not!

It’s often the case that we end up spending, not saving as a result of these messages.

The reason is the Big “Saving Money” Scam – we are fooled (including fooling ourselves) into believing we are saving money by taking advantages of these offers. The reason is that we don’t realise there are actually three different ways to save money.

The Three Ways to Save Money

1) Wants-Driven Saving
2) Needs-Driven Saving
3) Cash Saving

1) Wants-Driven Saving

Ever seen a special offer that really grabbed your attention?! One like “60% off this plasma TV but only while stocks last!” “75% off this leather sofa – only for the next two weeks!”. You might already have a perfectly good TV and sofa but you don’t want to miss out on such a good deal right?

The fact is that the sales price is often just the real price or acceptable price to the retailer. For example have you have you ever heard of a sofa store where there isn’t a sale on?!

The sale price is often the price they need to make a decent profit. The law may have required them to sell that item at “full-price” for a time in some of their stores, but in reality they are happy with the sale price.

The reason this is important is because we are talking about “Wants-Driven Saving”. This is a saving on an item you are tempted to WANT but don’t really NEED. And what compels you to buy is the false idea that you are saving money in the future by buying the item.

Are You Realling Saving?
In actual fact you’re not saving money, you’re spending money – right now! Managing your money well relies on thinking about cash flow – this is a cash outflow from your monthly budget – not a cash inflow. This is a false or fake kind of saving, which will lead you to actually increase spending and most likely increase debt.

You are also being subjected to a sales trick called “creating scarcity”. The seller creates the sense that there is competition with others and that you may miss out on this wonderful deal since “the offer runs out soon!” or “all the items might sell!”

These purchases give us a momentary thrill, they make us feel good for a little while. And we quieten the little voice in our head saying “you’ve just spent money idiot!” by justifying it as “future savings” when nothing could be further from the truth.

The sad fact is that millions of people drive themselves into financial difficultly doing exactly this – all the while thinking they are being “financially smart”.

2) Needs-Driven Saving

Needs-Driven savings remarkably enough are savings based on items you NEED, not WANT. These are savings on items you would have bought ANYWAY, even if there was no discount or offer. For example this could be a two for one offer on groceries or a discount voucher for petrol.

These are real savings as you are reducing the amount of cash flowing out of your pocket – cash that would have flowed out anyway.

One of the best money saving tips is to focus on Needs-Driven Savings when you are being bombarded with savings offers. Filter through them and find the right ones.

For example my girlfriend was recently offered a card that gave 50% off at a lot of London restaurants, for a price of course. Now if we dined out a lot, and felt this was something that fitted under one of our needs, then the card might have been worth it. However interestingly enough the 50% discount didn’t apply on Fridays and Saturdays at most places, the days we were most likely to go out. And also we were able to get 50% off vouchers for most of our favourite restaurants anyway for free elsewhere – so for us that fell under Wants-Driven Saving and we didn’t get the card.

So Needs-Driven Saving does mean you save money. Now what to do with that cash you didn’t spend? Funny you should ask…

3) Cash Saving

This is what I would call really saving money. Taking money from your paycheck and putting it into a savings account. Why – because the cash is still there. It hasn’t been spent. It is earning interest. You have actually saved money which is now building on itself.

Part of cash saving can also includes paying down debt. This is because you immediately reduce your cash outflows when paying off debt. See my previous post A Guaranteed Profit On Your Money? It’s Possible!

So if you take the cash from Needs-Driven Saving and pay off debt, you not only save that cash, but also get a guaranteed return on it. Now doesn’t that all sound better than option 1 above?

The Challenge with Saving

The challenge for us is the balance between the three, particularly with Needs- versus Wants-Driven savings. For example what would you call saving money on expensive Christmas presents? Did you NEED to buy expensive presents in the first place? No-one’s immune to this by the way, myself I’m partially prone to spending on gadgets like the iPhone!

The answer is, as always, “it depends”.

It depends on your personal circumstances. If you are knee-deep in debt (usually because of Wants-Driven Spending!) then you will need to restrict yourself to spending on only the things you need, look for savings there, and focus on paying off debt. If you have more flexibility then spending on things you want isn’t necessarily a bad thing – so long as you don’t kid yourself into thinking you’re actually saving money… and so long as you are cutting unnecessary expenditure elsewhere.

Think about the last few times you were tempted by an “once-in-a-lifetime savings” offer? Did you really save money?

The Big “Saving Money” Scam is a post from: Smart Money Mindset.com

From a financial perspective, Christmas can be an extremely expensive time and if we’re not very careful the season of good will, will put us in debt for the next six months or more.

Managing Your Money at Christmas

Therefore, managing your money becomes even more important at Christmas time since it has the potential to damage your financial health for most of the coming year. (You’re not still paying for last Christmas are you?)

Everyone Wants Your Cash

There’s just so much stuff to pay out for and it’s not just gifts! From decorations, luxury food and cards to new clothes, travel expenses and work parties, much of which we don’t budget for. We’re expected to buy presents at great expense for all of our nearest and dearest, leave tips for the dustmen, postman and window cleaner and have a good stash of booze in the drinks cabinet for any passing visitors , it just seems never ending!

So what can you do to limit the financial damage that Christmas can have on your bank balance? Managing your money at Christmas requires two main things:

1. A small amount of time
2. Work with the budget you have (not the one you wish you had!)

Budgeting for Christmas Money Management

The very first thing to do is create a budget sheet to find out what you can actually afford to spend and stick with it! It should take you no more than an hour to sit down and work out what money you have available for Christmas. First write down all of your normal monthly outgoings such as mortgage, groceries, utility bills, phone, TV, travel expenses, insurances, etc. and add them up.

In a separate column write down all the ordinary money you have coming in for that month , so wages, any benefits (such as child benefit or tax credits), rent from lodgers, any money you have saved for Christmas etc. Do this for the months November, December and January and promise yourself that you will not be paying for Christmas after January!

Being Off Work Saves You Money

Now comes the important bit: add to your incoming column any Christmas bonuses you will receive and any savings you might make because you are not at work (yes it’s often cheaper to be at home than at work!). Because you are off for a week or two, you might well be saving on travel expenses and parking fees. You might also save on paying out for lunches and coffees every day. Add all these savings to your income for the month(s); subtract the figure for your income from your outgoings and voila , this is what you have to spend. Take a bit from January if you must, but make a commitment to pay that off in January!

Managing your money at Christmas does take a little thought and effort, but by using just one hour wisely you can save yourself a lot of money and a lot of financial pressure in the new year.

Managing Your Money at Christmas is a post from: Smart Money Mindset.com

Relying on just a pension to get you through your old age? You could be setting yourself up for disappointment, pain and financial hardship.

Are you being manipulated and ripped off by financial companies? Read below and judge for yourself. This post is for all of you not lucky enough to have a final salary pension from your company.

“A Guaranteed Return” on Pensions

“Pensions Offer a Guaranteed Return” is a line repeated by financial advisors and commentators across the world to convince you to take out a pension. It’s simply not true. Here’s why:

Let’s start with some definitions. Some common definitions of “guaranteed” are:

“Something that assures a particular outcome or condition”
“An unconditional commitment that something will happen or that something is true”

And of “return”:

“To produce or yield”
“a coming back again”

So a “Guaranteed Return” should be something that without question will happen, and will come back to you. Pensions are sold on the idea that whatever contributions you make, the government will add the tax back that you’d paid on that money – therefore a “Guaranteed Return” exists cause you definitely get that tax back.

So here’s the thing with pensions – yes, you get the tax break and employer contributions if applicable… but they’re not guaranteed to come back to you. This is because you have to leave the money in there for 30-40 years – and a lot can happen in that time…

You’re Charging Me How Much?!

One of the main factors reducing your pension pot is over that period your pension company will be charging you an annual percentage fee based on the value of your total pot. This has been shown to reduce the amount of your overall investment by over 40% (yes, almost half!) by the time you retire.

Over those 30-40 years you will also have inflation eating away at the real value of your money, so even if you have got more in the pot than you put in, it may be worth less in terms of what you can buy with it.

Wanna Mess With Your Financial Advisor’s Head?

Just for fun ask a financial advisor the following question about the “Guaranteed Return” on pensions:

“So are you telling me that whatever happens (“Guaranteed”) that my pension pot will be at least the money I’ve put in plus the government tax breaks on top, and that’s what will be available to me (“Return”) on retirement as a bare minimum?”

The answer will be something like:

“Errr… no… ummm… not exactly”

You:

“So would I be right in saying that with the management charges, and your charges, and the fluctuations in the stock market, that even with your “Guaranteed Return” it’s perfectly possible that on retirement I will have less money than I put in, and even that will be worth less cause of inflation, just like it happened to thousands and thousands of people in the US and UK?”

“Errr… yes?”

“So how is that a “Guaranteed Return” then?”

Silence…

The Guaranteed Return line is so embedded in the pensions sales pitch it’s ridiculous. On TV recently I saw a husband and wife being told that their personal pension would pay out a fraction of what they thought, and they would barely be able to survive on retirement… and the financial advisor there said (yes you guessed it!) “Pensions are still a good investment because they offer you a guaranteed return”. I would say to that financial advisor try telling that to someone who’s got less money than they put in… but he actually did, on TV!

Oh, and did I mention that you of course do get taxed when you eventually take your pension.

So although pensions are sold as a rock solid “Guaranteed Return” investment, they are still an investment, with all the risks that come with investing. Plus unlike other investments, unless you’ve gone for a pension you personally manage, you have little real control over how that money is managed. Historically we can see that pension funds have NOT on the whole outperformed the market… but they still charged you for the priviledge of “managing” your money though.

Even the Power of Compounding is Taken Away

Pensions are also sold on the idea that the contributions you make will build and compound over time to give you a large pot of money at the end. Those of you who understand compounding (see my free debt report on the right for more information on this) will know that the amounts invested in the early years are the most important as they can build for the longest time.

Guess when most of the fees are taken for pension… yep, that’s right, in the beginning! So when your pension pot should be building up nicely to compound over the next 30-40 years, massive chunks of it are being taken away to pay for set-up fees, financial advisor fees. It’s not unheard of for these fees to amount to 60-70% of your contributions in the first few years, costing you massively by severely reducing your future pension pot.

Inflation is Going to Eat You Alive

Now let’s say you’re one of the lucky ones – you have a good fund manager, they make you a decent amount of money and you cash in your pension pot when the stock market is riding high.

That lump sum of cash now has to go into an “annuity” and a company will do that for you. So that cash goes into a relatively “safe” investment, such as government bonds, and gives you an income per year. How much this is depends on the annuity rates at the time (e.g. 5%) and how much you put in.

The problem is that the annuity doesn’t increase with inflation. So as you live into your retirement you’ll see prices increasing around you, and your money not being able to buy as much, year by year. With people living longer and longer inflation can literally eat you alive.

For example let’s say inflation runs at a relatively stable 3% and you’ve been “lucky” and have lived 25 years into retirement. Your annual income will now buy you less that HALF of what it did when you retired. (If you want to know the calculation for this let me know).

So even if you were able to get a decent annual income on retirement (no easy task) you could end up in your final years trying to get by on a very small amount of money. More than likely you were just getting by when you retired, so who knows how bad it could be after inflation has its way with you.

So what’s the alternative?

Well there’s no easy answer to this. I’m not saying that you shouldn’t invest in pensions – just that you should understand completely how they work and the risks you take on – and please don’t tolerate anyone spinning you the “Guaranteed Return” or “Safe Investment” lines.

Relying on the government to help is also a mistake. Government pensions are unlikely to even provide a basic level of income in most countries, especially with relatively less young people paying tax to support an ageing population.

The alternative is really a mindset shift. Stop thinking that you’ll be able to rely on your pension alone – it’s a dangerous game to play, a game where you can have little or no control. Ultimately it’s about building and creating multiple sources of income upon retirement (e.g. buy-to-let properties, other savings, investments in bonds etc.) and investing in yourself.

With people living longer and more importantly, maintaining their health, 65 is now just an arbitrary age for retirement, based on an industrial age way of thinking. Most people on retirement can be just as economically productive as they were, if not more, and age is less of a restricting factor. Chances are after working for 30-40 years, you’ll be bored to death (forgive the pun!) on retirement and looking for something to do anyway!

Why not teach yourself the skills now so you don’t have to rely on just a pension to get you by. Just a thought…

Relying on Your Pension? You’re Dead Already is a post from: Smart Money Mindset.com

The sad truth is that nowadays the majority of us are living in debt. Having credit cards, loans, mortgages and hire purchase agreements means that the average family owes a staggering £25,000!

If this is you (and you quite probably owe even more money than this, it’s only an average remember), you’re probably wondering if you are doomed to be trapped in the debt cycle forever.

Living Free of Debt

Starting to think about the possibility of living free from debt and the worry that debts can bring is the first step, so well done for getting here! You are already starting to think with the right financial mindset and are no longer willing to be sucked dry by the loan and mortgage companies who are living rich on your hard earned cash. Be rest assured that paying off your debts is the wisest financial decision you could ever make.

Debt Affects Our Health

Debt has so many damaging effects on us and not just on our bank balances. The health costs of debt are huge! There are many well researched and documented studies on the personal effects of debt. From increased suicide rates and substance abuse, to higher levels of divorce as well as causing depression in our children. Can you really go on taking these kinds of risks with your health and the health of your family?

How We Get Duped

Are you aware that the majority of the money that you are paying out each month is not actually going on paying off your loan debts at all? That’s right! Most of what you are paying is interest on your debts with only a small percentage paying off the actual loan.

That’s how the financial companies dupe us and make millions, if not billions, of pounds each year by charging us interest, upon interest. Take your mortgage for example, which you might consider as a “cheap loan”. Over 25 years you will likely pay out more in interest than the original loan amount. If you move house or change mortgage provider frequently it’s even worse! At the end of 25 years you could have paid more than treble the initial loan amount!

Develop the Right Mindset

Clever of them – but we need to be even smarter. Make the decision to stop lining their pockets and start lining your own now. By making a commitment to paying off debt you can get out of the dangerous trap that nearly all of us have been manipulated into and start experiencing the freedom of living a life without debt.

Paying Off Debt, What You Need to Know is a post from: Smart Money Mindset.com

Are you living within your means? Do you know exactly what you are spending each month or are your outgoings escalating out of control? When was the last time you carried out a financial health check? If your answers are no, no and never then read on!

Managing Your Money – Take Charge of Your Finances

There are many important responsibilities to take care of as an adult – our health, family, work, friendships, hobbies and home – but how many of us devote as much time to our financial health, as we do to all the other tasks we have to perform? Not many of us! Yet managing your money successfully, underpins your ability to enjoy and make the most of all of the other aspects of your life.

Why not think about setting aside some time each week to go through your finances and make sure that you are on track for the month? It really will be worth the time and effort and you will probably find areas where you can save money.

Budgeting

The first thing to do is to set out your monthly budget including what’s coming in and what’s going out.

Incoming
It’s usually easy enough to work out what we have coming in – the list is often a lot shorter than for the one going out! You will need to include your wages or government benefits and any family assistance that you receive. If you have any other regular incoming funds add them also.

Working out Your Outgoings
Make sure that you include absolutely everything you are spending each month. It’s often the little things that add up and take us over our monthly budget. So apart from the big costs such as mortgage or rent payments, food and loans which you will need to list, don’t forget to also include:

* Lunches – (yours, your children’s and your partners)
* Travel
* Magazines
* Those little trips to the local shop
* Birthday Cards and Presents
* Children’s Pocket Money
* Meals Out/Take Aways
* Coffee/Tea
* Charity Donations
* Vet’s Bills
* Dentistry
* Children’s Clubs and Activities
* Wine/Beer
* Lottery Tickets

Once you have a figure for your incoming finances and one for your outgoings, simply take one from the other to see if you are over or under your monthly budget. You may be surprised at what you find!

If you are going over your monthly budget you are more than likely using your credit card frequently to pay for extras. This is ok in the short term as long as you can pay off your credit card debt each month, but managing your money in this way over the long term can lead to your debts spiralling out of control, especially when you consider how much the credit card companies are making out of you.

Look through your list of outgoings and see what you can cut down on or cut out altogether and start taking charge of managing your money instead of it managing you!

Managing Your Money – Take Charge of Your Finances is a post from: Smart Money Mindset.com

Though the current global recession seems to be easing we can all still use tips to help us save some of our hard earned money. Just by utilising a little creativity and changing our mindset we could each be saving hundreds, if not thousands per year and increasing our own bank balances rather than those of the loan companies!

3 Top Tips for Saving Money

Mortgage lenders, loan and credit card companies all use the law of compounding to make sure they squeeze every last penny that they can out of you. Not only do you pay interest on your loan, but you pay interest on the interest. This is how financial companies keep us in debt for as long as they possibly can and they certainly don’t want you to know these tips for saving money!

Stay With Your Current Mortgage Provider

Yes, you read it right! One thing that many people do not realise is that when you change mortgage lender you also reset your interest payments to start from the beginning. Since the majority of your monthly mortgage payments in the first 12 years is actually paying the interest rather than the actual loan, when you switch to a new lender you actually restart this process. This means that the more times you change lender the more interest you will pay over the lifetime of the mortgage. What a waste of your money!

Ask Your Credit Card Company for a Lower Rate

Another one of my top tips for saving money is asking your current credit card provider to lower their interest rate for you! Just give them a call and ask them. Point out what a good customer you have been, how you pay on time and that you would like a reduced rate please. The customer service advisor may be a little surprised, but you can get a reduced rate if you negotiate in the right way.

Save Money on Anything Using Simple Negotiation Techniques

Try these out to see for yourself how you can buy nearly anything, from an apartment to an apple, for lower than the ticket price.

Act reluctantly – Pretend you are not interested in the product and watch the salesperson lower and lower the price until you buy!

Ask for more than you want – Always offer a price lower than what you are actually willing to pay. 9 times out of 10 you will pay either what you wanted to or less than you expected.

Which of these top tips for saving money will you try? If you decided to do all of these things you could save yourself hundreds per month – think of how those savings could be used!

3 Top Tips for Saving Money is a post from: Smart Money Mindset.com