Budgeting When Your Paycheck Varies

How can you decide how much you have for bills and expenses when your paycheck varies from one payday to the next? That's a question a lot of people struggle with.

A few of the occupations that I can think of off hand that could fall into this category are waitresses or waiters working for salary and tips, truck drivers that are paid by the mile and never know how many miles they are going to get, the self-employed that their business income varies from season to season, and the list could go on.

Trying to manage your finances with a steady income is hard enough but when you never know what your paycheck will be seems almost impossible, but it's not. It is, however, going to be a little more tricky.

In my Budget and Bill Organizer I talk about averaging your expenses like your phone and electric bills that vary from month to month. The same principle can be used to average your income.

The first step you need to take is to find records of your pay for as far back as you can. It would be best if you had records going back for at least 6 months.

Take these records and total the amounts you were paid for the entire period. Then divide that by the number of months you have records for. This will give you your average monthly income.

If you don't have any record of your previous pay you may need to go to your employer to get the information. If there is no way to get this information you should start a log of how much you get paid and use this to develop your budget.

Once you have determined your average monthly income you will need to develop your budget just as if this was your regular pay.

Here's where it gets tricky. You aren't always going make the amount you have budgeted. The only way to handle this is to save when you make more than what you have budgeted.

Here's an example:

You have determined that your monthly budget is $2000 per month;

In January you earn $2500. You will need to put away $500 of that money so that you can make up for any month that your income falls below $2000.

This sounds like a simple solution to a complex problem but it may not be as easy as it sounds unless you accustomed to saving money. It will take some discipline to make sure that money is there when you need it.

There could be a bright side to this method. If you are able to put the extra money away and you have several months that you make more than your budget you could end up with a sizable savings account.

When setting up your budget make sure that you don't underestimate your bills and expenses. This is one of the major reasons many budgets fail.

By averaging your income it will prevent the "Feast to Famine" approach to your spending. It only makes sense to spread your income out so that you can cover all of your bills and expenses every month.

Terry Rigg is the author of Living Within Your Means - The Easy Way http://www.homemoneyhelp.com/ebookadpage3.html and editor of the Budget Stretcher web site. To Subscribe to The FREE Budget Stretcher Newsletter and receive The Complete Budget and Bill Organizer absolutely free just visit his home page at http://www.homemoneyhelp.com.

Budgeting in Spain

Not everyone retiring or emigrating to Spain has the funds to lead a millionaire's lifestyle in Marbella. On the contrary, many people have the intention of leading a more simple life, even along the Costas. However, unfortunately the reality is due to a lack of information and little planning, many people find that the costa living (pardon the pun) can be on par with that of back home and in some cases even more!

Planning your budget for a new life in Spain should take place before you have even left the UK. Be imaginative and plan for the worst case scenario. Of course, everybody's financial situation will be different but people need to make an allowance for the following and what ever else comes to mind.

Removals.

Flights.

Hiring a car until you buy one.

Buying a car.

Insuring it and paying for it to be put in your name, oh yes you have to pay for that!

Renting until you have found somewhere to buy or your off plan has been issued the License of Occupation.

Storage for your belongings whilst you are renting.

Furniture and all the work associated with your new home.

School fees.

Medical Fees.

The list is endless. During the settling in period of about six months, people new to their life in Spain waste so much money before they eventually get their bearings. You will feel like you are on holiday until you become immune to the beautiful weather and notice that your bank balance has plummeted. Young families and couples who need to earn an income should be very careful as sadly many are forced to return to the UK every year due to a mixture of bad luck and unrealistic expectations.

The following are some suggestions to help to avoid unnecessary excess spending. It might be common knowledge for some people who are more familiar with the coast but I am sure it will benefit as reminder.

Learn Spanish. If you can communicate in Spanish it opens doors for you, cheaper ones! You are less likely to be ripped off and you will be able to sense potentially costly situations.

Bear in mind that for most services you pay a premium to have someone speak to you in your language, it is all part of the paid for service. For example, a wash and blow dry in a Spanish hairdressers where you will be expected to communicate in Spanish might cost you eight euros, in a similar hairdressers where a member of the staff can communicate with you in basic English it will cost fourteen but if you want the privilege of having your hair washed and styled by British hands, you can expect to pay around twenty.

Be careful in the market, market doesn't necessarily equate cheap. When buying fruit make sure the products on display are labelled with a price. It is not unheard of for people to pay as much as nine euros for a kilo of strawberries. Which reminds me, become familiar with the metric system as it is the only system used in Spain!

Unlike in the UK, where we are following the US with economies of scale and good quality retail bargains, when products are cheap in Spain, it usually means they are poor quality. For example, you can buy a t-shirt from Tesco or Primark and the quality is reasonable and it will probably last at least a season. On the contrary, in Spain, you will be lucky if a cheap top lasts a couple of washes.

Keep an eye on your food shopping bill. There is a particular supermarket which stocks British brands at extortionate prices. Adapt your eating habits and you can save yourself loads. You don't need to buy Kingsmill bread; there are Spanish equivalents. Check out Mercadona which is great value and excellent quality. Their own brand foods are excellent. I particularly recommend their Tiramisu in the dessert chiller. Okay, their choice isn't overwhelming, but they stock everything that you need and their stores are a manageable size. You find that you eat more healthily without being tempted by an array of ready meals and you get your shopping done in half the time.

Eating out can be another money drainer if you don't know the places to go to. Don't go to the obvious touristy haunts. Drive half an hour to an hour inland and try out a "venta", where a family of four can enjoy a delicious Spanish home made style cooking for as little as fifty euros.

Of course, it is all trial and error but keep your wits about you. I find that the best bargains are always to be had if you follow the Spanish. Watch where they shop and go out to eat and you shouldn't go too wrong.

Susan Pedalino is Masters Degree qualified in Intercultural Communication and teaching English as a foreign language. Susan regularly writes for www.eyeonspain.com, the Spanish off plan property forums website and www.eyeonworldwide, the overseas property forums website.

Budgeting to Improve your Home

Home improvement projects often scare people off, since many believe that it will cost thousands of dollars to remodel one room, since they lack the skills to do the job them self. They may also feel that the project is expensive since materials and tools are needed.

To the contrary, home improvement does not have to be expensive at all. Of course, if you hire a subcontractor or contractor to do the job, you will pay fortune, but if you have patients and the ability to read and follow directions, thus you can remodel an entire room in your home for less than a hundred dollars. Of course, you will need to contrast and compare materials.

Before starting the process of improving your home, you will need to setup a budget and a plan to get started. You will need to consider various notions when considering and planning home improvement. For example, do you intend to paint your home? Do you intend to tile your home? Do you want carpet in your home?

Asking questions is part of analyzing and planning for home improvement. One of the best tools to have when considering home improvement is knowing what you like and knowing what you want. When I improve my home the first thing I do is roam my brain searching for favorites and what excites and appeals to me. Thus, when I go to the home improvement stores I already have in mind what I am going to purchase, thus this relaxes my quest to improving my home.

If you are lacking the cash to improve your home, thus setting up a budget will help you get what you want as well as save you cash. You may even consider purchasing materials and tools for home improvement at the stores that offer discounts and/or purchases with no payments until a particular date. This notion will give you time to get your home improved while saving the cash to payoff the improvement materials and tools.

Unfortunately, many people go for secondary home loans to improve their home. Getting loans from lenders often lead to debt, and secondary home loans for improvement only leads to paying off your home twice. Thus, avoid high interest rates and loan payments and learn to budget to improve your home.

Let me give you an overall view of what one room could cost you for repairs. Say you want to paint a room in your home. You will need plaster, sealers, primer, paints, paint thinners, scrapers, screwdriver, paint opening (often come with paint purchases), patches, paintbrushes, tray, and so forth. Now you may think this is going to cost you a fortune to improve your home, but to the contrary, you are wrong.

The paint and tools if anything else will cost you the most, while the other items will cost less; thus, primer, sealers and plaster cost around fifteen if you go to the right store.

Paint thinners, trays, brushes and screwdriver will cost around fifteen if you visit the right store. Thus, the patches should be purchased with a plaster kit, which will save you a few pennies. The paint will cost around twenty per can, depending on the type of paint purchased. Therefore, for around a hundred bucks you could remodel a room in your home without hiring anyone to do the job providing you follow the instructions.

What about the bathroom, can you remodel the area on a budget plan? It depends on the size of the area, but if you wish to tile your bathroom and paint the walls you could get the job done for around a hundred bucks give or take. If you visit the right stores and know what you are doing, you could remodel a small bathroom or medium bathroom for around fifty bucks.

Learning to budget and plan can help you to remodel your entire home (if the home is in good standings) for a few hundred dollars. Furthermore, doing the work, your self will save you thousands of dollars.

Tony Robinson is an experienced House Renovator, Webmaster and International Author. Visit http://www.better-home-improvement.com/ for his Home Renovation tips.

Budgeting to avoid staying out of Debt Problems!

Budgeting

Debt in Australia has reached an all time high. People are becoming more and more reliant on credit to survive. Credit cards are an easy and efficient way to pay for goods and services however, unless spending is monitored closely, it can easily get out of control.

Credit and store cards, mobile phones bills, petrol prices, interest rates and the general cost of living have all impacted on household debt levels.

The social impact of debt is difficult to quantify however, you only have to look at the disintegration of the family unit and the increasing number of people turning to drugs and alcohol to realise that debt is a huge problem for society.

It's very easy for debt to get out of hand.

When the debt collectors call to ask for a payment, all they want to hear is how much you can pay and when can you pay it.

Many people simply do not know how to cope with this situation and as the phone calls and letters keep coming, they ignore them, hoping that somehow the debt issue will resolve itself.

A budget is a key ingredient to a brighter financial future. A budget helps you plan ahead, like a roadmap, and should be revised regularly to avoid getting "lost".

Budgets are a tool to help regain control of your finances. Despite how important a budget is, most people don't have one, and don't place enough importance in them.

Most people have a rough idea of how much they make per week, but believe it or not most people spend more than they make not knowing exactly where the money goes.

A budget is a great way to show exactly where money is being spent, and where possible cutbacks could be made. Subsequently, a budget is a great starting point for a savings plan.

Make a list of all your monthly bills and necessities and make sure they are covered by your monthly income. Only spend money on items not listed in your budget after the bills are paid. Be disciplined and stay within your budget guidelines.

If you are still struggling with debt and need help, seek help from a professional debt consolidation company that can help you get relief from your debt.

Download our free budget planner here to help you manage your debt.

Download our free budget planner here to help you manage your debt.

Grant O'Donnell is a registered Debt Agreement Administrator and the CEO of Debt Fix Pty Ltd. Debt Fix specialise in Debt Management options for people struggling with debt. Mr O'Donnell has been working in the consumer finance industry for the most part of 10 years, understand

Budgeting Tips for Young Couples

The honeymoon is over! How times have changed from those glory years when you and your spouse-to-be were footloose and fancy free. You were dating, having fun, planning your dream wedding, the vacation on some exotic island and then living happily ever after.

Now, you've settled into the routines of life: work, paying the ever-increasing bills, and perhaps you have been blessed with a child (or two). The priorities have certainly changed! And, so has the financial picture. Your planning horizon has shifted from month-to-month to building a long-term future for your family.

What I am describing can be a very large burden on young families. This was a very difficult time for my wife and me, but with almost twenty years of experience under our belts, I now feel equipped to offer you some advice.

1) Share The Budget Burden - Budgeting decisions shouldn't be made in a vacuum! Both husband and wife must set up a monthly budget together. If one person is not involved in these important lifestyle decisions, there is bound to be bitterness and anxiety. I have found that, in most marriages, the husband and wife will have opposite habits which tend to balance each other out. In other words, one may squeeze the money so tight that George Washington would cry while the other has a hole in their pocket! It is usually a healthy thing to meet in the middle somewhere.

2) Pay Yourself First - Nearly all couples have a checking account where the paychecks get deposited. All bills are paid from this account using check, check card or even online. As long as you stay above zero until the next payday, you're OK. Right? WRONG! Unexpected big bills will come up and you need to have some cash reserves. What happens when the water heater breaks or you need the transmission fixed? The best way to manage this is to have a separate bank or investment account set up. Write a check to this separate account on each payday or at least once a month. Stay disciplined to this program! Treat it like a payment to any other bill collector. Then, you will have money available to pay cash for those inevitable surprises and you will not have to use the evil credit card. This leads me to my next piece of advice...

3) Credit Cards: NO! - While I believe in using debt to buy a house, I do not endorse the use of credit for most other purposes. If you can't pay off those bills on a monthly basis, don't charge it! Credit card debt will kill your long-term financing, will create a bigger and bigger financial burden, and will put more pressure on your marriage relationship. To illustrate this, let's take a simple example. Let's say you decide to "loosen the belts" a little and charge a big screen TV and take a nice vacation. The $5,000 bill doesn't seem very big and besides all your friends are doing it. After you get back from the sunny beach, you start writing monthly $200 checks to your credit card company. You didn't realize it would take 32 months to completely pay for those two purchases. Your credit card company is happy because, with your 18% interest rate, they will make about $1,400 in interest. That's money that could have been earning interest in your investment account. It could get worse. What if, during month 16 of your repayment plan, your car breaks down and you are facing some major repairs. Since you don't have money in the bank, you need to pay the $2,500 bill with your credit card! Now, you are in roughly the same position you were when you started paying off the TV and vacation 16 months ago! So, plain in simple: If you can't pay it off each month, don't charge it!

4) Start an On-line Business - Sometimes, managing your expenses isn't good enough. In today's day of outsourcing and tightening corporate budgets, some creativity may be necessary. You could get a second job outside the home, but this will eventually take its toll on family life. I would recommend researching various internet business options. As with most journeys, the hardest part is taking that first step. You should start your research in various on-line business forums, web sites and discussion groups. You will soon find that there are many reputable on-line resources available to help get your business started.

Dave Keegan has been married to his wife, Dawn, for 17 years. They have two teenage children. Dave works full-time as a systems analyst for a large corporation and has quality ideas for helping people get started in internet marketing. For more information, visit: www.dkeeganonline.com/pbi