Posts Tagged ‘high Desert area’

A couple of weeks ago we talked about how a home is like running a business. In this article we will move straight forward into household budget tips promised from part one of the previous article.

A household budget consists of eight important categories. They are the following: charity, saving, food, utilities, housing, transportation, clothing, and personal. When a person gains control over each of these areas, they eliminate a weight of apprehension and can step into the flow of anticipation.

First on the list, charity, it is a simple yet amazing concept. Givers flourish, and more comes back their way. When thinking about giving ask one simple question, “How can I contribute back to the world with my money in a way that represents me?” You’ll be amazed at the answers you have, start with one, and as you increase financially you’ll do far more than you imagined. The key is to start with what you have, not until you have. Second is saving, set an amount you will save based on your current income level and start there. The key in saving is to eventually save at least six months of total household expenses in case of an emergency. Saving is not meant to create wealth, that’s what investing is for. Third is food, these are the monthly expenses of all the food from groceries and dining out. Fourth is utilities, identify consistent expenses in things like gas, water, electricity, phone, internet, cable, and so forth. Fifth, housing, this expense category should be fairly exact each month, these include your first mortgage/rent, second mortgage, real estate taxes, repairs, homeowner insurance, and so forth. Sixth, transportation, these are your car payment(s), gas and oil, auto insurance, repairs, tires, and any other car related expense. Seventh, clothing, these are any purchases for anyone in the household. Eighth, personal, which consist of life insurance, health insurance, disability insurance, child care/sitter, entertainment, gym membership, and any other related expense.

Knowing where you currently stand financially is anticipation. Anticipation helps eliminate unnecessary guessing and causes productivity to soar like an eagle! I highly recommend all my real estate clients to become debt-free and to make that their goal even when it looks “impossible” to start. The best kept secret is this, do all you can with all you currently have today, not tomorrow, today. Before you know it, once you apply this principle for 365 times in one year, you’ll be far ahead. Once a family is out of debt they can step into investing, and when investing is done properly, that debt-free individual or family become a force for greatness.

If this article helped you in any way, please share it with a loved one. The more you give, the more that comes back to you. Happy 2013!

Feel free to contact us at 760.596.9856 or email us at info@NissiAgents.com for a FREE sample household budget. As always, if you like to personally connect with me for awesome social media updates, please do so here: http://www.JoinDNA.com

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