Budgeting your Savings - Did You Let Your Piggy Bank Get Away?

I think most of us have at some point in our lives. Some how we forget to feed the little piggy. And, like most neglected "pets", your piggy bank will disappear if you don't feed it. A personal budget is important to create financial independence and setting goals for feeding that "piggy bank" should be an important part of your budget!

The most successful financial plans allow you to INVEST IN YOURSELF! It just makes good sense. A plan to build financial security should always be considered essential to any budget.

Even if you're on a plan to reduce debt, you need to include plans to build a foundation for future financial security. A good savings routine and variable expense account are essential to building a strong foundation for financial independence.

A variable expense allowance in the budget is important to save for those expenses that seem to "hit us unexpectedly". Funny thing is, we know these expenses will occur. They are an inevitable fact of finances for most of us. So, why do we call them unexpected? I can't explain why, but there are many of us who make this very BIG mistake in our budgeting.

Some expenses don't occur monthly. Some are paid out every now and then, quarterly, yearly, or bi-monthly, or semi-annually. These are expenses like car insurance and maintenance, home insurance and maintenance, property taxes, income taxes, medical expenses (prescriptions, deductibles, co-pays), pet care, school expenses (supplies, trips, activity fees, books), and clothing. Some of these are huge expenses that can put a ripple in any good budget if not planned for.

Most of us have good intentions, but it's easy to fall prey to the credit card companies without a plan to cover all of these "unexpected" expenses. The term still makes me chuckle. I mean, don't we "expect" to wear clothes? It's even funnier to me knowing that I was guilty of this very thing. Poor Planning! Not expecting what should be expected.

Lesson ???.Don't forget about this expenses in your budget. They will sabotage the best of intentions!

The other essential ingredient to a successful budget is a savings plan. A good savings plan should have a goal to reach at least the minimum amount necessary for you to survive for a three to four month period. It may take time, but this a strategy that provides a fail safe against a financial crisis. Crisis such as serious illness or job loss.

Trying to save money by cutting your savings budget out will eventually backfire on you. It is essential to build financial security, in order to remain debt free, you must not compromise your savings expense.

Only if there is no way to avoid it should you reduce the amount of your monthly savings commitment.

Start with 2-4% of your monthly income if you have to. A little is better than nothing, and then you can build it up from there to at least 10% of income as funds become available.

Some Important Points:

Applying extra funds to your debt first will not help you gain financial security. Emergency savings and variable expense savings goals should be met before debt is reduced in order to remain debt free. After all, these sources will be the foundation you will fall back on in order to remain debt free. If you can build a reserve for emergencies you won't have to use those nasty credit cards. This is an important defense that builds financial security. If you use a good debt reduction plan, debt will reduce, and in a reasonable amount of time. As long as you stop creating debt. Just be patient.

Paying more on your debt, instead of saving, is not going to help you pay for that major car repair when the car breaks down. It will most likely do the opposite of your intended plan and send you running for the credit card to bail out.

Of course once you have reached your goals for savings and your variable expense account, then you should start applying extra funds to your debt reduction plan.

Using money saving tips reduces expenses in your budget in an effort to help you build that financial security. Through saving money on everyday expenses and living a frugal lifestyle, you free up monies to apply to your savings and variable expense account. These are the defenses that build a strong foundation for your financial independence.

These "defenses" prepare for the inevitable expenses that will arise. Many of us had just forgotten to plan correctly for these types of expenses. That's how we got in the "big red mess" to begin with. Properly preparing for necessary variable expenses is your defense against feeling the need to use the credit cards.

Once you have balanced your expenses with your income, you have created a Budget for Debt Free Living. Congratulations! You are on your way to financial freedom and security. Enjoy! This concept is simply "living within your means." Something that many of us in today's "plastic society" have forgotten to do.

Live Debt Free to Be Free. You Deserve It!

Cheryl Johnson is a mother of four helping herself and others become and stay debt free. Publisher of Simple Debt Free Living at http://www.simpledebtfreeliving.com - A self-help plan, ideas, and resources for debt management, household budget planning, frugal and debt free living, and extra income opportunities. Money saving tips for groceries, clothing, gifts, home decorating, weddings, and much more. A money saving tip a day keeps the credit card away.

---

Google News Updated : Thu, 24 Jul 2008 18:51:58 GMT Health Buzz: A $500 million Antismoking Campaign and Other Health News - U.S. News & World Report BBC News Health Buzz: A $500 million Antismoking Campaign and Other Health News U.S. News & World Report - 3 hours ago Billionaires Bill Gates and New York City Mayor Michael R. Bloomberg announced yesterday that they'll contribute a combined $500 million to a worldwide antismoking campaign, the New York Times reports. Video: Gates, Bloomberg Pool Riches to Fight Smoking AssociatedPress The $500 million war on smoking Minneapolis Star Tribune Reuters - Newsday - Economist - California Healthline all 639 news articles Publ.Date : Thu, 24 Jul 2008 15:43:30 GMT Ford Has $8.7 Billion Loss, Shifts Away From Trucks (Update4) - Bloomberg Ford Has $8.7 Billion Loss, Shifts Away From Trucks (Update4) Bloomberg - 44 minutes ago By Bill Koenig July 24 (Bloomberg) -- Ford Motor Co., the world's third- biggest automaker, posted a record quarterly loss of $8.7 billion and accelerated a conversion to fuel-efficient vehicles to wean itself from money-losing trucks. Ford's Worst Quarter Ever BusinessWeek Ford Posts Loss of $8.7 Billion on Asset Woes New York Times Forbes - CNNMoney.com - Reuters - Los Angeles Times all 1,181 news articles Publ.Date : Thu, 24 Jul 2008 18:07:48 GMT Arizona reports first West Nile death of 2008 - Bizjournals.com TheMedGuru Arizona reports first West Nile death of 2008 Bizjournals.com - 1 hour ago Arizona has reported its first death from the West Nile virus this year. It also is the first West Nile death in the US this year. First bird in Nassau tests positive for West Nile Newsday Fighting West Nile Alexandria Gazette Packet KTAR.com - AZFamily - FOXBusiness - Boston Globe all 231 news articles Publ.Date : Thu, 24 Jul 2008 17:45:00 GMT FOX News Poll: No Bounce for Obama From Overseas Trip - FOXNews ABC News FOX News Poll: No Bounce for Obama From Overseas Trip FOXNews - 27 minutes ago By Dana Blanton The significant news coverage Barack Obama is receiving on his foreign trip has not translated into a bounce in his numbers, a just-released FOX News poll shows. Wanted: 2 million poll workers for November The Associated Press Comment by Leonard Steinhorn Prof, School of Communication, American University New York Times - CNN - United Press International - PolitickerCA all 689 news articles Publ.Date : Thu, 24 Jul 2008 18:24:50 GMT Would UN Security Council Postpone Any Prosecution of Sudanese Leader? - Voice of America Voice of America Would UN Security Council Postpone Any Prosecution of Sudanese Leader? Voice of America - 1 hour ago By Joe De Capua As the International Criminal Court (ICC) considers whether to issue arrest warrants for Sudanese President al-Bashir, some are calling on the UN Security Council to block the action. Sudan's Beshir pledges peace as he leaves Darfur AFP Jordan's lower house opposes charges against Sudanese president Xinhua Hindu - Los Angeles Times - istockAnalyst.com - AllAfrica.com all 1,823 news articles Publ.Date : Thu, 24 Jul 2008 17:30:10 GMT Swimmer’s Positive Test Puts Olympic Berth Doubt - New York Times New York Times Swimmer’s Positive Test Puts Olympic Berth Doubt New York Times - 30 minutes ago By KAREN CROUSE The swimmer Jessica Hardy has not been penalized for a doping offense despite published reports that she tested positive for a banned substance. Video: Source:Hardy Tests Positive for Banned Substance AssociatedPress Sequence doesn't make Sense Los Angeles Times Gay Wired - Palo Alto Online - The Wenatchee World Online - The Associated Press all 750 news articles Publ.Date : Thu, 24 Jul 2008 18:21:30 GMT South Texas begins cleanup after Hurricane Dolly - The Associated Press Calgary Herald South Texas begins cleanup after Hurricane Dolly The Associated Press - 30 minutes ago HARLINGEN, Texas (AP) - Residents across south Texas slogged through knee-deep muddy waters, tiptoed around downed power lines and dug through debris Thursday, but were thankful that Hurricane Dolly didn't pack the wallop they had feared. Video: Tropical Storm Dolly Causes Flood Worries AssociatedPress Dolly weakens, pushes inland USA Today East Valley Tribune - AHN - KIII TV3 - KVIA all 7,399 news articles Publ.Date : Thu, 24 Jul 2008 18:21:14 GMT Amazon RSS Clickbank Datafeed

PARLOT::Ebooks, Scripts, Websites, and more...

Adsense websites

Take Control and Master Your Kitchen

Those who keep a watchful eye on where their money... Read More

Learning the Basics of Handling Money

With prices increasing all the time, saving money can be... Read More

Reporting Identity Theft

Would you know what to do if you suspect that... Read More

Budgeting -- The Critical Flaw That Causes Most Budgets to Fail

Budgeting. It's a word we're all familiar with. Everyone knows... Read More

One Income Source Is Not Enough!

My personal opinion is that in today's new economy, it... Read More

Are You Sick of the Financial Insecurity of Fluctuating Seasons and Income?

Finding a stable and secure income that will come year... Read More

Portfolio Planning can Lead to Irreconcilable Differences

The judge had to ask the question, and we had... Read More

How Electronic Checks Work ? Will Paper Checks Eventually Go Away?

Traditional checks probably won't disappear anytime soon, but processing checks... Read More

Single Mother Resources Directs You Towards Success

As a parent you are bound to face a few... Read More

How To Get Ahead On A Low Income

Do you struggle from week to week trying to make... Read More

Budgeting your Savings - Did You Let Your Piggy Bank Get Away?

I think most of us have at some point in... Read More

Know Thy Finances

The first step to financial success lies in knowing your... Read More

How to Balance Your Checkbook ? Get a Calculator and Pencil and You are Ready To Go!

Despite how easy it is to balance a checkbook, very... Read More

Save On Food - Ten Tips

To save on food, be an opportunist. Buy what you... Read More

Identity Theft is a Major Problem: Whose Responsibility is It to Protect the Consumer?

We have heard a lot about consumers' personal information getting... Read More

Budgeting: A Tough Love Way to Handle Your Household Budget

Developing and living by a household budget is by far... Read More

Estate Planning Basics

You have probably accomplished a great deal with your life.... Read More

What?s New in Checking ? From Designs to Photos

Just about everyone has a checking account. Checks present easy... Read More

Personal Finance - Have Consumers Had a Belly Full of Personal Debt?

For months, we were trigger-swipe happy, putting our groceries, clothes,... Read More

Save Money on your Clothing Budget. Tame the Closet Monster!

Reducing the clothing budget was a serious challenge for me.... Read More

Money Matters - Really!

One of the biggest challenges facing black RELATIONSHIPS today are... Read More

Saving Dimes Can Go a Long Way

On the other hand, there are those people who are... Read More

Eight Ways To Sink Yourself Financially

1. Don't focus on your finances.The reason most people get... Read More

Budgeting is Bothersome

It doesn't take much for you to get behind on... Read More

Roth IRA Contributions - IRS Rules

Confused about whether you can contribute to a Roth IRA?... Read More