Budgeting – 5 Does to help you Budget

• BBR Productions Inc : Budgeting – 5 Does to help you Budget

These five helpful budgeting “Does” will make any budgeting system go much smoother.

1. Spend less than you save : Live within your means. This is a simple rule for wealth growing while utilizing a budget. Buy within a budget. Over the year a monthly spending average could raise or lower based on spending habits. Stay within Cap Budgeting Numbers to maintain growth. When cuts can be made, take advantage of this situation; you have earned it!

2. No credit cards : Credit cards accrue debt. When no money is saved over a person's budget, then a Credit Card purchase should not be made. If a Credit Card is a necessity, then purchase only if the complete value is in an aside spending pile. This will help grow a line of credit and build your value. However, once Wealth grows, a line of Credit will not be needed.

3. Create Investments to Buy Wants : To purchase a car, house, or items that will accrue a loan payment, develop an investment. This investment will pay for the Want. A house has a mortgage which can cripple individuals living on a shoestring budget. Having an investment earning money over expenses will make purchasing things like these easier on the wallet.

4. The 6 month rule : If ever you want to purchase anything look at your monetary situation. If you purchased this item and lost your job on the same day, could you maintain a comfortable lifestyle and pay all your bills off within 6 months? If the answer is NO, then you cannot afford this item. Thus, save up for this item over your established budget so it does not cause issues.

5. Guess Low for Income, Guess High for Expense : You want to always be ahead of the game with free wiggle room. If a paycheck average is $263.00 a week, round down to the nearest dollar increment: Record it in your budget as $250.00 a week. Expenses should be Budgeted higher than their average by rounding up. Electric Bill averages $163.00 a month, record it in your Budget as $200.00 a month.

PS... Can you find the monkey?

Call our office : 631.599.2263
Visit our website : BBR Productions Inc

Budgeting – Building your savings.

• BBR Productions Inc : Budgeting – Building your savings.

Once a Budget is set into place this allows for “Money Over Expenses” to be allocated into a Savings account. This is one way money can be utilized over expenses. However, there is another way. It's called the 3 Needs of Purpose: Security, Growth, and Dream. Security protects money while investing it through the Growth need, allowing money left over for desired Dreams. How to feed these 3 Needs of Purpose? This happens with “Money Over Expenses”. It's called the 60/40 split.

Simple math makes this process very easy. A person earns $1,000 for the month. Their personal Monthly Budget is $900. This leaves $100 for “Money Over Expenses”. This remaining $100 is pulled into the 60/40 split. 60% of that $100 gets placed evenly into the 3 Needs of Purpose. The remaining 40% is placed into Savings. Since a Budget is designed to cover all expenses, anything left over is play money. This is a smart way to look at money coming in and going out.

Maintaining a Budget is a great start to building a big pile of Savings. Placing money into the 3 Needs of Purpose helps generate future wealth opportunities. Then, there is the 3 Month Safety Net. This is a person's Monthly Budget multiplied by 3 and that total delegates a Cap for Money Over Expenses to accumulate. This will provide additional protection with three months of life accounted for, while also giving an individual a strong foothold on their 3 Needs of Purpose, and Savings!

PS... Can you find the monkey?

Call our office : 631.599.2263
Visit our website : BBR Productions Inc

Budgeting – What is your overhead?

• BBR Productions Inc : Budgeting – What is your overhead?

Overhead is the amount of money it costs an individual to live monthly. This total is combined of every expense from hygienic items to major bills such as rent or mortgages. An easy way to figure out a monthly budgeting average is to take three months of bank statements and list out each expense. When this is accomplished, divide that total amount, per expense, by three months. This also helps plot out Budget Categories, where expenses are going.

There are four types of expenses; Visible, Invisible, Unforeseen, and a person's Wants vs Needs. A Visible Expenses is set in stone. Rent is a prime example of a Visible Expense. Invisible Expenses are unset by necessary charges. Gas, which is generalized as an expense can vary from week to week. Unforeseen Expenses are emergencies, car breaks down, or maybe even a veterinarian visit for an animal. We all have Wants vs Needs Expenses. We want that new car, or new video game system.

Having an idea of a working budget, and maintaining that budget through spending under allotted Caps, helps take control back. Money controls people when it is out of their control. Such is Time Management. When an individual can control their Time and Money, they take control back into their lives. Break fears of waiting for money to come in with the control of time and money back in your hands. Money and Time have no value until a person gives it value. Be the value above the worry.

PS... Can you find the monkey?

Call our office : 631.599.2263

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