• Want to start a budget? – start with a positive attitude Want to start a budget? – start with a positive attitude

    Want to start a budget? – start with a positive attitude

Want to start a budget? – start with a positive attitude

Most people make a really good effort to try to set put a budget and stick to it.  Some people become disheartened and give up before they start to feel any real financial benefit.  A number of issues can cause the collapse of a household budget but attitude is the biggest one, a positive attitude will make it a lot easier to succeed.

Let us look at the meaning of the word Budget according to the dictionary.  The word budget can mean cheap, economical or modest – these terms are negative and not very encouraging.  It can also me to plan ahead, account or make provision for.  The latter is a more positive way of looking at it.  If you always think of cheap or see it as having to live in a modest, penny-pinching way, then you are starting off with a negative sense of the word.

A positive attitude towards your budget is crucial to your success.  If you think of your budget in a positive way remembering that it is helping you to reach your goals, you will find that it is much easier to stick to.  Include all of your expenses so that it is not only the mortgage and utility bills that are contained in your budget.  Reward yourself along the way.  Remember to plan for other expenses such as birthdays and holidays, so when you book that break away, there is the satisfaction in knowing that the money has been set aside for it and all you have to do is enjoy it!

Try the free online tool, BillsManager.com to set out your household budget.  You can follow the step by step instructions to set it up and once set […]

By |February 27th, 2013|blog|0 Comments
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  • Teach your children to manage their money Teach your children to manage their money

    Teach your children to manage their money

Teach your children to manage their money

According to an article in the Evening Herald yesterday, some Irish teenagers are being paid over €1,500 a year in pocket money.  The survey by the Irish League of Credit Unions reported that 51% of those surveyed stated that they received pocket money which ranges between €5 and less up to €30 or more per week.  The aims of the survey were to look at the financial perception teenagers have and their views on saving and spending money.

It is imperative that we equip our children how to use money especially in the current economic climate.  This life skill needs to be taught in an easy and fun way and in a manner that does not appear to be preaching to them.

When giving your child their pocket money, ensure they understand what it is for.  Firstly, they should earn this money, by doing their household chores.  These should be age specific and checked, if the job isn’t done right, then they should do it again or get a reduced allowance.  They should of course clean up their own room and perhaps help with meal time prep before and/or after free of charge.  Money has to be earned, it does not come free!

Teach them to budget – how to plan their spending.  Instil in them to have a sensible attitude to money management.  Explain that they should spend a little, save some towards something they really want like a laptop or phone or for their future and share some.   Teach them to be civic minded, encourage them to donate a small percentage of their money to a charity.  Children learn from what they can see, through experience and from your guidance.  Try the free […]

By |February 26th, 2013|blog|0 Comments
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  • Budget for your new baby Budget for your new baby

    Budget for your new baby

Budget for your new baby

Congratulations on your fantastic news and when the excitement of finding out you are pregnant has worn off, you will need to budget for your new baby.  A new baby brings financial changes and budgeting challenges.  Planning for your little one will involve putting together a list of costs.

This list can be split into sections, outlay on one- time expenses and the on- going monthly expenses.  One- time expenditure includes medical bills (if any) incurred during your pregnancy, car seat, pram, cot, etc.  Most of these can be either bought second hand or perhaps your friends or family will either gift them to you or if they have had children themselves, you may be able to borrow them.

I found a helpful budget tool on nca.ie called “baby budget planner” which lists off most of the equipment required and if you use the internet to price the items you need to purchase, you will soon have a better idea on what the initial outlay will be for your new baby.   You should also factor in the loss of earnings whilst you are out, how much will you get paid during your maternity leave?

The on-going expenses will need to be factored into your household budget also.  Childcare costs will be a sizeable addition to your budget.  Your electricity and gas bills will inevitably increase as will your shopping bills due to additional purchases of nappies, formula milk, baby food and clothes etc.

Keep track of your income and expenditure on BillsManager.com; include the on-going additional expenditure brought to bear when the little one arrives.  But in the meantime, you have the best part of 9 months to plan for the one off buys and as […]

By |February 25th, 2013|blog|0 Comments
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  • Is your household budget keeping you captive or setting you free? Is your household budget keeping you captive or setting you free?

    Is your household budget keeping you captive or setting you free?

Is your household budget keeping you captive or setting you free?

Our household budget definitely does not keep us captive, it sets us free.  We budget so that we are free from the worry of paying bills.   We want to plan our spending so that we pay all our bills on time and this helps us to see clearly how much money is left over (if any) to enable us to make decisions on any other purchases at any time.  We chose to set out a budget using the free online tool, BillsManager, which made it easy for us to understand how much money we needed to set aside monthly towards all our household bills.

We update our BillsManager budget account on a monthly basis and it automatically updates our budget if any of the bills paid in the month are over or less than what we have planned they would be.  We can check how we are doing in relation to our annual spending at any stage in the month and armed with this information we can see if we can afford that new TV or buy those concert tickets.

We have included a summer holiday savings in our BillsManager budget which means we are saving towards our family holiday on a monthly basis and know that come June, we have that money set aside to enjoy without affecting our cash flow.  In fact, we add the not so traditional bills into our plan also and if we have forgotten an expense, we just add it in as it occurs, that way it will be provided for the next time the expense falls due.  For instance, I find that around the children’s birthdays, money seems to just haemorrhage from our pockets. We have […]

By |February 22nd, 2013|blog|0 Comments
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  • Discretionary spending, is this where your budget is draining Discretionary spending, is this where your budget is draining

    Discretionary spending, is this where your budget is draining

Discretionary spending, is this where your budget is draining

Those forgotten purchases that all add up, discretionary spending is where the budget can be drained and if left unchecked it can be completely blown out of the water.  So you think you have included all your bills into your budget and you are on track to taking control of your money but for some reason each month the funds in the account don’t quite stretch to cover the bills.

Perhaps you have forgotten the monthly subscription to a magazine that doesn’t even get opened anymore let alone read by anyone in the household.  This might cost between €50 and €70 per year.   Or you might enjoy your latte or cappuccino every day for your elevenses to wash down that scone or croissant.  If we say the average cost of just a coffee is €2.50, this equates to €12.50 per 5 day working week which is an astonishing €650 per year.  That is not including the scone or croissant.

Are the kids buying games on their consoles or paying unnecessary subscriptions for games that they no longer use.  Are they constantly on their iPod or iPad buying music or apps that are a must today but forgotten about by the end of the week? In fact, by the time you get your credit card bill they have forgotten what they bought.  It is very easy to buy these games, apps etc. and when it doesn’t seem to affect the cash in your pocket, it is the ignored squandering.

Now is the time to start keeping track of all your household expenditure. BillsManager.com has a very easy to use, income and expenditure sheet, to help you keep track of all spending.  This is a free online tool […]

By |February 22nd, 2013|blog|0 Comments
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  • Household budget – it’s your business Household budget – it’s your business

    Household budget – it’s your business

Household budget – it’s your business

Similar to running a business, your household should be run on a snug budget.  The household budget should be set out annually but reviewed as new bills or changes in income and expenditure take place.  This would mean that a regular monthly budget check would make common sense.

As in business there needs to be room for negotiation between “management” (person responsible for running the household) and the “board” (the rest of the family): allowing discussions on discretionary spending such as holidays, clothing allowances, entertainment etc., how much can be allocated after all other fixed and irregular bills have been budgeted for.

When the whole family are involved in setting out the allocation spend for holidays say, they will all be made aware of the overall household budget and perhaps realise that if they remember to turn off that light, or switch off the TV when they leave the room, that this might make the difference between day trip to Bangor or 2 weeks in Barbados!  This will help the whole family focus on the family goals and may get everyone working towards reducing the running costs of your home.

An excellent free tool to help you manage your household budget can be found at BillsManager.com.  When you start up a household budget account here, it will not only track your spending but will also keep you on track with future spending.

BillsManager will adjust your budget automatically for you; if your car insurance bill is cheaper this year, BillsManager will correct the figure for next years’ bill.  A regular update to your BillsManager account allows you to see your household cash flow and indicates how much money you need at any given time […]

By |February 19th, 2013|blog|0 Comments
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  • Stop Throwing your Money in the Bin Stop Throwing your Money in the Bin

    Stop Throwing your Money in the Bin

Stop Throwing your Money in the Bin

I came across a very interesting website, www.stopfoodwaste.ie, on the topic of how much food we Irish waste, literally throwing our money in the bin.  The statistics are astonishing and really we could save money if we just stopped throwing away food.  Savings of as little as €700 or as much as over €1000 per year could be made by making changes to how we shop and how we store our food.

The average household in Ireland will throw about 1.2 ton of rubbish in a year.   Approximately, 30% of this rubbish accounts for food and a further 35% of the rubbish we throw into our black bins could be recycled.  The main types of food wasted is bread, apples, potatoes, salads, meat and fish, dairy such as milk and yogurt, spreads and dips.

So some minor adjustments to your shopping list would mean saving money two fold, firstly by spending less on your shopping bill and secondly by having fewer bin lifts.  Save money by planning your meals in advance and always check what you already have in the cupboards and fridge before you go shopping.  Be mindful of the “Use by” dates on perishables and use the foods with the shortest dates first.  Some fresh foods can be frozen and used later in the week or month, but always check the packaging or advice given by your supermarket.

Only buy what you will eat.  Many of us would like to be eating the healthy options and include our “5 a day” on the shopping list, but do you eat your 5 a day.  Don’t buy it if you or your family will not eat it.  Use leftovers to make another meal for the family […]

By |February 1st, 2013|blog|0 Comments
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  • How could a budget improve your relationship? How could a budget improve your relationship?

    How could a budget improve your relationship?

How could a budget improve your relationship?

According to an article in the Irish Independent yesterday, over 80% of couples seeking help with their relationship have encountered financial difficulty.  Many of these couples have said that mounting debt is affecting their relationships.  As part of the advice being given, perhaps these couples should be shown how to set up a household budget.

In most Irish households, one person has the responsibility of paying the bills.  To avoid further arguments about money, both parties need to get involved in dealing with the financial side of things.  A budget can bring a couple closer together as they identify and work towards common goals and indeed help the whole family focus on common targets.  A budget can improve the relationship as it will help a couple take control of their money instead of it controlling their relationship.

A budget might reveal areas where one or both of you have been spending too much money and will help you refocus on your most important objectives.  Both of you need to agree that the aim of setting out a budget is to set out a spending plan for the future and although one or both persons might be found “guilty” of overspending, it is time to draw a line in the sand and start afresh.  This budget is going to show you how much the household is in debt, if at all, and by putting a structure on future bill payments, it will help you get out of debt.

So where do you start?  Together, gather all your bill information such as the amount, frequency and due dates of every bill you pay.  Have your recent bank statements to hand. Go to www.billsmanager.com.  Follow the simple, step […]

By |January 29th, 2013|blog|0 Comments
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  • How is your Household Budget spent? How is your Household Budget spent?

    How is your Household Budget spent?

How is your Household Budget spent?

Do you know how your household budget is spent?  People do not have an infinite amount of money, so they have to prioritise how they spend their household budget.   This means every household has to decide what they consider the most important and this is where their money is spent first.  Typically, in a household budget this is the mortgage/rent, light and heat, food and transport.   The household expenditure can be divided into three types, fixed, irregular and discretionary.

Fixed expenses are the bills that have fixed due dates and fixed amount.  Bills such as Mortgage repayments, Rent, loan repayments, car tax, car and house insurance, life assurance and TV Licence are examples of fixed expenses.  These are an easier type of bill to budget for.

Irregular expenses are the bills that have fixed due dates but the amount due will vary each time the bills issue.   Bills such as Electricity, Telephone, Heating, Petrol, car maintenance, grocery shopping. Although more difficult to budget for, these bills should be allocated an estimated amount in the household budget and can be adjusted for as each bill is paid

Discretionary expenditure is what the name suggests, optional or flexible expenditure.  These bills are dependent on the wants or wishes of the household.  These include holidays, entertainment, hobbies and clothing.  These bills should be included in the household budget.  They should be allocated a set amount and this figure should be adhered to.

Ideally all discretionary expenditure should be planned spending as opposed to impulse buying.  Impulse buying is where a person spends money on the spot without prior thought or planning and is dangerous as you could be spending money that should be used to pay an important bill.  Knowing what […]

By |January 28th, 2013|blog|0 Comments
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  • Save Money on your Energy Bills Save Money on your Energy Bills

    Save Money on your Energy Bills

Save Money on your Energy Bills

You can save money on your energy bills by looking at who is giving the best offers and switching to the provider that is offering the cheapest energy.  Save money by checking out the prices being offered by the various providers including the one you are currently with.  Energy providers are in a very competitive world and are constantly changing their offers to entice new customers.  According to an article in the Irish Independent today if you are currently with a provider and have not signed a new contract, it is likely that you have been switched back to their standard rates.

Generally speaking when you sign up to a “deal” or “plan” it is for a specified period of time, perhaps 12 or 18 months.  When this period of time has elapsed, in most cases you revert back on to the standard rate plan being offered at that time.

For instance, take someone who has never switched electricity provider and are still with ESB, now known as Electricity Ireland.  Unless the customer contacted ESB to switch to a cheaper plan at the time they launched as Electricity Ireland, they will have remained on the standard rate.  This switch could have saved them as much as €250 per year.  In order to obtain their cheapest rates you need to contact them they will not call you to switch your account over to the cheaper plans.  So be proactive, start surfing or calling, and save your hard earned money.

Use common sense to save money on your energy bills by making a couple of small changes in your house.  Maintain your heating system/Boiler by getting it serviced annually or at least every 2 years to make it […]

By |January 25th, 2013|blog|0 Comments
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