From the category archives:

Budgeting

Budgeting Without Bean Counting…5 Great Tips

by joeplemon on January 27, 2010

in Budgeting

children 3
Creative Commons License photo credit: F. Montino

As Janice and I have worked on our budget over the years, we have learned that the more we can automate it, the easier it becomes, the more we enjoy it and the greater our chances of sticking with it.

We want to feel like we are in control of our money, but we also want to relax, enjoy life and not be phobicized by every penny we spend. The following tips might sound sloppy to the nerds among us, but because of the simplicity they give to our lives, we are confident they will serve us well for a lifetime:

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Creative Commons License photo credit: KrissZPhotography

What is the Wealth Effect?

Did you know that recessions are good for your savings account, but a booming economy tends to drain your savings? It’s true. In April, 2005, when the stock market was booming, personal savings in the United States dipped to 1% but jumped to as high as 6% during the recent recession. Why this phenomena? Because we instinctively cling to what we have when times are tough, but we also loosen those purse strings when good times return. Meir Stratman, a behavioral finance expert at Santa Clara University, explains that this tendency, known as “the Wealth Effect”, has occurred predictably during past recessions and recoveries.  The Wealth Effect occurs because we allow our feelings to trump our financial logic:  when we “feel” threatened we save,  but when we start to “feel”  optimistic we spend.  

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Top Ten Grocery Saving Tips From the Expert (My Wife)

November 24, 2009

 My wife is a remarkable homemaker; we could never have raised four children on a single income without her amazing skills and creativity.  She was our family barber, the seamstress who patched the knees of torn jeans and fashioned homemade Halloween costumes (robot outfits made from egg cartons can look awesome when done right…see photo) and [...]

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Envelopes: The Glue That Holds Your Budget Together

November 23, 2009

photo credit: piermario

“I get worn out trying to track every dollar.”
“It just didn’t work.”
“I’m not a numbers cruncher.”
“Budgets are just too complicated.”

Sound familiar? These are just some of the reasons why Janice and I have struggled with budgeting over the years. We would diligently write the numbers on a yellow lined pad, but we [...]

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Our Budget is Working…What Now?

July 23, 2009

photo credit: Matt McGee
These past three posts have walked you though the process of getting your budget up and running.  I pointed out the five pitfalls you will need to avoid, the four benefits of a successful budget and five steps to putting the budget in place.  You have listened and you are making [...]

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How You Can Afford to Be a Stay at Home Mom

July 22, 2009

photo credit: kennymatic
Both of you work outside the home. You are expecting your first child and the wife would like to be able to quit her job and be a stay at home mom with the baby. This is very important to both of you, but can you afford all the [...]

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Four Benefits of Your New Budget

July 21, 2009

photo credit: squacco
If you are like most of us you have tried budgeting and given up. But what are your choices? Never try again? If you can avoid the pitfalls (see recent post) and if you can begin reaping the budget benefits, you will develop a lifetime budgeting habit.
“Wait!”, you say, “Isn’t a budget [...]

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Five Budgeting Pitfalls to Avoid

July 20, 2009

photo credit: shastared
This post is the first of four posts of a series on budgeting. The third installment will be a guest post on Being Frugal on Wednesday, so be sure to check it out!
BUDGET DIDN’T WORK? TRY TRY AGAIN.
I know. I know. You have tried budgeting and it [...]

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