Budget alternatives for saving money

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If cash flow isn't a problem, yet negative monthly balances are, having no budget isn’t necessarily the problem. The core problem in some instances where having no budget isn't the root cause of  saving too little could be spending too much.  In such an instances simplified living is one way to save money without a budget and can be sustainable according to June, 2010 report in USA Today.

Budgets are not an absolute necessity when it comes to saving money because something more important underlies the capacity to save, specifically personal cash flow. The following non-budget saving tips may be of utility. In addition to saving money, these tips can also save time because money saving methods such as budgets often require account entries in financial software or a financial record keeping system.

Reassess expenditures

Reassessing expenditures can help save money without a budget. This involves reviewing your financial profile and seeing where the money pits and vacuums are. If there’s something like a low mileage vehicle, or high credit card debt using up most of your cash, it may be possible to approach the debt in a different way in order to increase savings. For example, with a high credit card debt, you could refinance at a lower rate, and reduce monthly payments in order to save more.

Calculate mentally

If you can add, subtract and multiply, you can probably calculate mentally as well. Keeping a mental tally of accounts and expenditures isn’t that much different from remembering how many eggs are in your fridge, or when the milk expires. Similarly, knowing which bills are paid and which aren’t will help avoid late fees and save unnecessary charges.

Minimize numbers

Remembering a lot of numbers takes mental capacity. Minimizing mental calculations, account balances and transactions can be helpful to the overall goal of saving money without a budget. For example, the one number method just uses a single number, the balance of your checking account. By remembering what the balance is, you will be aware of how much extra money you have for saving after all expenses are paid.

Time finances

Another way to save money without a budget is to pre-pay your savings account. This is also referred to as paying yourself first. For example, before you spend money on anything, transfer money to your savings account, and you’re done. The reason why this method works is timing. By transferring money before paying bills, buying things or investing, savings can consistently increase if this practice is periodically continued without withdrawals.

By reducing the amount of goods and services in your life, costs go down regardless of whether or not you have a budget. For example, more expensive cars can cost more in property insurance than some used cars, and too many paid memberships or services lower balances. To save money without a budget it can help to avoid overspending and increase savings.

Advantages of shopping at BJs

Many people have heard of Costco and Sam's Club, but less may have considered BJ's a viable alternative to both these wholesale stores. BJ's is similar to Costco in some ways, but improved upon in others. For example,  BJ's allows manufacturer coupons, has self check out, and accepts credit cards whereas Costco currently does not have any of these features.

BJ's is set up more like a large supermarket rather than a warehouse making the shopping experience more enjoyable. When shopping at BJ's the ceilings may seem lower, the aisles may not seem quite so crowded and the checkout might be considerably faster. BJ's also carries a wide range of discounted products, some of which are also available at supermarkets such as Safeway and Whole Foods; examples of brand names include Legal Seafoods, Alexia and Stonyfield.

Other benefits of shopping at BJ's include instant online coupons, full service website, and allowance of credit cards as a payment option. Also, if you intend to shop at BJ's a lot, the no annual fee BJ's credit card offers a 2 percent rewards program on purchases made at BJ's, and one percent at other retail locations. Rewards are offered in the form of BJ's Bucks redeemable at 3000 points and usable for BJ's purchases.

If the BJ's credit card is used in combination with store coupons, manufacturer coupons and wholesale discount prices, one can potentially multiply savings four times if the BJ's credit card balance is paid off in full before incurring interest charges. BJ's allows the use of more than one offer or multiple coupons on purchased items. The BJ's credit card can also be used as a membership card according to BJ's, and BJ's if you shop on a state sales tax holiday, subtract the cost of tax as well.

When visiting BJ's online location, manufacturer rebates are also available. BJ's has products in a number of categories including electronics, office, home, baby, jewelry, sports and more. For high frequency use items like diapers, laundry detergent or your favorite meal BJ's offers discounted bulk pricing in addition to competitively priced electronics items such as HD televisions.

Other benefits of BJ's stores include longer open hours than Costco stores at some locations, autumn flu shot clinics, BJs tire store and BJs gas stations. Items purchased at BJ's online may qualify for an instant coupon. Monthly specials are also offered at BJ's in addition to free one day passes, available online, to persons interested in trying out BJ's before deciding on a membership.  A BJs membership also provides affiliate discounts such as 25 percent off car rentals and specialized services such s television wall mounting and discounted shed purchase, delivery and installation.

BJ's locations are in the Eastern United States, and there were 187 stores as of February,  2010. In the near future, four new BJ's locations are scheduled to open in Connecticut, Virginia, Maryland and New York. Some BJ's stores are also located closer to urban cores than Costco and Sams Club; this can lower commute times and gas expenses. If you don't particularly like free samples of food, you don’t have to worry about that at BJ's as they don't offer any helping you shop for what's on your list, and not what's on the sample menu.

Sources: 

1. http://bit.ly/kLiqJ (BJ's Wholesale Club)

Tips for Achieving Security In an Uncertain Economy

Achieving financial security in an uncertain economy may involve 1) acknowledging a financial reality, 2) tackling tough financial problems such as debt, spending, budgeting etc. and 3) finding solutions to improve a financial situation. Financial security is multifaceted in the sense it includes financial planning, relationships, physical safety, emotional stability, and personal happiness.

Achieving financial security in today's economy can be assisted by wise financial decision making, and keeping income above the cost of living so as to facilitate savings and investments. Obtaining financial security demands know how, life agility, toughness, and a belief in oneself.

To believe in one's ability to make the most of all parts of one's life is an important starting point in achieving security. Once one has conviction in one's goals and dreams the next step is to act. The following paragraphs illustrate some of the important ways security may be achieved amidst an economic environment of corporate downsizing, frequent layoffs, changing employer needs and employment competition.

• Develop skills that fill economic needs

Skills that are in demand pay well. Economic trends and rises in the demand of various services and salaries are an indicator of demand. For example, as the baby boomers start retiring the demand for health care workers is expected to rise. There are many different professions within the field of health-care, some of which may be just what one is looking for with good pay to match.

• Improve psychological fortitude

Life and uncertain economic conditions can bombard one with rejection, fear, doubt, struggle and many other negative and unpleasant things. Being able to function normally and happily within such potential conditions requires psychological strength. Such strength can take years to build and minutes to fall apart. Consulting self-help books, thinking about how to approach situations differently and developing trust and reliance through perseverance may be what is necessary to build such psychological strength.

• Utilize time

Time really is money and unfortunately there are only 24 hours in day and 168 hours in a week. Since any time spent not working for pay, is money not earned that time is a financial loss if one values money. The week can be broken down by percentage as follows:

33% is spent sleeping on average, roughly 5% is used up on driving places, another 10-15% or so is spent eating and cooking, 4% in the bathroom, 8% on housekeeping, 2% on errands and 10% on entertainment. That leaves approximately 38-40 hours to make money. One can either optimize those 38-40 hours by maximizing one's income whenever possible, or reduce the amount of time doing other things to make more money.

• Live within financial means

Everyone knows one can't spend what one doesn't have. The difficulty lies not so much with the concept but finding a way to actually stick to a budget and live happily at the same time. Living within one's financial means not only means budgeting in some way it also can mean learning to be happy with what one has. It is possible to be happy without more things it just takes effort.

• Build other sources of security

Not all security is financial whether it be an uncertain economy or not. Security can also mean emotional fulfillment, spiritual peace, strong relationships, good mental and physical health etc. Building every aspect of one's life as much as possible can mean a more secure, fulfilling and happy life. To build other sources of security may be easier than building financial security because it involves different parts of life such as relationships, philosophy, art, exercise etc. All of which can assist one appreciate life more fully.

• Put money away

Saving is important because it builds security and can help finance a future retirement and unforeseen expenses. A penny saved is a penny earned and pennies are a plenty. If one has to start saving with pennies why not. If having a giant jar of pennies makes one feel secure it is a good place to start and train oneself to save daily.

Whenever there are a few extra dollars to spare, save them. In time dollars add up just as pennies do. Cutting back on small expenses that don't seem a lot can also help save money. Making small financial sacrifices for the sake of saving can help bring financial security or at least a sense of financial direction which can be comforting.

To summarize, security is a both an actual condition and a psychological feeling. What's more, money isn't everything, but it is also quite important. This article has illustrated some of the ways by which security can be achieved in any economy, whether it is uncertain or not.

Since security is also a psychological term, there are also psychological aspects to the 'feeling' of security. While one may never be entirely secure, a belief in oneself, conviction in one's values, in addition to pragmatic steps such as time management, skill development and monetary prudence are all useful means by which to improve and attain a greater security.

Tips for financial planning in your 50s

Financial planning in the 50's involves a few adjustments to financial planning in the 40's and sometimes a brand new financial plan. In the 50's, if one hasn't retired already, there are about 6-16 years left before the Government starts paying back in the form of social security. Until then, financial planning ideally involves some unique investing, budgeting and saving tactics. A few of those techniques are illustrated in the following paragraphs.

Investing

Conservative investing: One can't afford to lose huge amounts of money in the fifties unless millions of unaccounted dollars lay in forgotten investment coffers from many years ago. For this reason conservative investing is key and is considered the ideal investment strategy for older adults by many financial consultants and retirement planners. Conservative investment isn't always low risk but involves hedging against volatility through diversification and portfolio percentage asset allocation.

Portfolio percentages: Portfolio percentages are the percentage allocation of one's assets in type of investment risk. For example, one may have 25% of one's assets in a house, another 25% in an Individual Retirement Account (IRA), 15% in stocks, 15% in treasury bonds and 20% in annuities. During the fifties, a portfolio allocation that is less vulnerable to heavy fluctuation and more prone to steady growth may be desirable.

Dividend stocks: Some stocks pay dividends and appreciate in capital value. These types of stocks are useful for long term investors who don't plan on trading a lot. If the companies are financially strong with good outlooks, they can pay up to 5% in dividends on top of any capital gains.

Budgeting

For many people, budgeting is a reality. Budgets help save money, keep spending under control and can allow one to invest for retirement. Managing an acceptable budget may involve 1 or 2 lifestyle changes but could yield financial stability in the future. Good budgeting is fairly straightforward and involves the following methods:

• Keep expenses under control
• Save money for a rainy day
• Spend according to needs rather than wants
• Look for ways to improve financial performance in all respects
• Maintain spreadsheets and/or organize financial paperwork and tax documents

Balancing money is somewhat of an art, but it can be exciting and one can allow one to learn new ways to save on taxes, make money go farther and discover new ways to work with money. Effective budgeting requires a semi-perpetual attention to financial concerns, objectives and needs, but is often for the best.

Saving

A third part of financial management in the fifties is saving. One can save through a mortgage, retirement accounts, savings accounts, money market account or treasury bonds because they may all be secure places to put money except in the case of the IRA which may involve some risk.

Having access to liquid capital is also important for emergencies, budget short falls, or other complications that may arise. What's more having some money in savings prevents one from withdrawing money from retirement accounts and paying an early withdrawal penalty.

Financial planning in the fifties may be a new challenge or an adjustment to an old strategy. In either case, the older one becomes, the more important financial planning can be if one wants a safe and comfortable retirement. What's more, even in the fifties unforeseen circumstances may arise such as medical problems, job layoff, natural catastrophe etc.

Financial planning can help one prepare for these things in addition to building capital wealth and maintaining standard of living. Also, if one is still unsure about how to go about financial planning even after researching and thinking about the matter, a financial planner that is certified by the Certified Financial Planner Board of Standards may prove helpful in addition to the above tips.