Stephen Berkley - How to Control Your Finances

By Stephen Berkley

Copyright 2019

Third Edition, License Notes

Copyright Info:

This book is intended for personal reference material only. This book is not to be re-sold or redistributed to individuals without the consent of the copyright owner. If you did not pay for this book or have obtained it through illicit means then please purchase an authorized copy online. Thank you for respecting the hard work of this author.

Legal Info:

This author and or rights owner(s) make no claims, promises, or guarantees in regards to the accuracy, completeness, or adequacy of the contents of this book, and expressly disclaims liability for errors and omissions in the contents within. This product is for reference use only. Please consult a professional before taking action on any of the contents found within.

We want to take a moment to say thank you for purchasing our guide online. HiddenStuff Entertainment remains one of the top app and eBook publishers online. It is our commitment to bring you the most important information to enrich your life.

We sincerely hope that you find this guide useful and beneficial in your quest for betterment. We want to provide readers with knowledge and build their skills to perform at the highest levels within their topics of interest. This in turn contributes to a positive and more enjoyable experience. After all, it is our belief that things in life are to be enjoyed as much as they possibly can be.

If you are in need of additional support or resources in regards to this guide, please feel free to visit our webpage at Hiddenstuffentertainment.com

Contents

Having a sense of financial responsibility will do a lot for you like promoting your financial health life. Living within your income simply means you only spend what is below or equal to what you earn in a period of one month. For several people, this is easier on paper.

Loans, credit cards, and emergency funds let you spend more than your monthly income. Sadly, that lifestyle is not going to sustain you for a long time, and sooner or later you are going to suffer the consequences. All your savings as well as access to credit would be exhausted and at that point, youd have to ensure some adjustments or man up to financial ruin.

For anyone seeking to live a life of contentment, you need to ascertain what your spending limits are. Knowing how much your yearly salary is or how much you earn per hour is not going to assist you to a life of contentment. You are expected to have knowledge of your net income.

Also, its important you know when your monthly income comes in. That way, you can easily tell if you can pay certain bills or not. Since the bulk of bills are catered for monthly, you need to ascertain the amount of money you get as income on a monthly basis. Multiply your weekly payments times four, while bi-weekly payments can be multiplied times two to arrive at your monthly income.

The moment you have sorted out the amount of money you are making, you would automatically resize your budget to fit your earning. If you still lack any, draft out a budget plan for your expenses, as that can be used to restrain your spending to a large extent. If you had already attempted budgeting and you didnt get the expected result, try in once more. Sometimes you only need some small alterations to what you call your budget before it can work.

Sometimes it is overwhelming trying to do budgeting during a financial period that comes with a lot of stress. Try a technique known as backwards budgeting. Pen your income down; remove all the expenses you pay every month. Should you arrive at a negative value, then your spending habits are way more than the required.

If what youre spending on are your basic needs, and you still spend way beyond your earning, then boosting your income sounds like your best shot. Typically, if you are privy to tax refund, one can adjust their tax withholding so that the paycheck will have more money.

Also, ensure you have access to the appropriate disability, health, and other benefits that are provided by companies. Finally, getting a job that pays higher or a supportive job may be your only option to making ends meet. What is important here is that you do what is considered necessary for meeting your basic expenses.

Implementing credit cards for paying your bills or covering further expenses cannot be regarded as not living above your means. Anytime you make a budget plan, make sure you are not planning to use credits cards for meeting your needs.

You cannot rely on credit cards alone because the company in charge of credit cards may decide to reduce the limit of your credit card or worse still, terminate your use of that credit card without giving you any warnings. If what you are paying is not up to what you are charging, your credit will certainly be exhausted.

Dont be pressured into trying to live life like those who are close to you or like celebrities on TV. You may live a fake life today because you have a credit card that can bail you out, in the near future it will no longer seem that way since you would be expected to pay all the credit back. And lets not forget the additional interest on top of it at the end of every month.

People mostly use their credit cards when they are doing large purchases that theyre unable to do an outright payment for. For instance a new TV set. Rather than using your credit card to buy such things, why not save a certain amount of cash every month till you have saved a lot of money to buy that item. If you cannot buy something from the money you have saved, then there is no need buying that item.

If you have savings that you have set apart for emergencies, you wont have to resort to credit card anytime you have an emergency situation to handle. An emergency savings of between 3 to 6 months living expenses makes a lot of sense, but you can get started with between $100 and $200, and that will help you handle small-scale emergencies.

Assess your budget so you can estimate how much you can save every month. Make use of an auto transfer method for simplifying your efforts to achieve your savings objective.

If you do not have any idea about budgeting, knowing how your monthly income can be properly managed can seem difficult. You do not only have to organize things, but you equally need to make hard choices regarding how your cash should be spent. Relying on how others handled their financial situations wouldnt be as helpful, because you may have a different expenses and income structure from theirs. Somebody may conveniently spend about $2000 in a month for just accommodation somewhere in Arlington, but such an amount may not be reasonable for someone like you due to obvious reasons.

But theres good news: No need for advanced spreadsheets with too many spending groups, and you also do not need any financial experts to know the amount of cash you are able to spend. All you need is the 50-20-30 Rule.

The 50-20-30 Rule aids you in building a budget plan by implementing 3 spending groups:

• 50% of whatever you earn should be directed towards living expenses as well as essentials. That includes your utilities, rent, and other things such as transportation and groceries.