What is the key to making real progress with your budget? While there may be more than one answer, goals must be part of the equation. Whether you’re getting out of debt, saving up for a purchase, or looking at term deposit rates and other investments, this is how you give yourself a target. This is how you focus on the results that you desire.

Real Value of Setting Goals

Setting goals in your budget do more than give yourself something to shoot for, in the short and long-term. There are a couple of important by-products that should not be ignored:

• Measure Yourself: You might not have enjoyed high school chemistry, but this is different. Take notes (quantitative and qualitative) on how well you do across the board with your goals. Analyzing your progress can help you not only track your progress, but make the changes necessary to improve efficiency.
• Motivation: Taking yourself to the next level – for your budgeting savvy – cannot be done without motivating yourself. This is inextricably linked to smart goals. If you don’t have them, it is likely that you will falter and slide on your budget.

Once you take budgeting seriously, you will find yourself reaching your goals. Sure, there might be some hiccups along the way, but as you improve with being frugal, cutting down unnecessary expenses, analyzing your progress, and so on – you will make those steps needed to reach your goals.

Never Think Too Large, or Too Small

Your budgeting goals should be as detailed as your budget. In other words, just as you observe your expenses on a large and small scale, so too should you look at what you want – what your goals truly are for you and your money.

While it may be a bit of a generalization, it seems as if though many budgeting goals are large in scale. Consider the following popular goals:

• Getting out of debt
• Saving for retirement
• Buying a new house or car
• Renovating the home

Now let’s consider something else. When’s the last time you said to yourself, “I want to cut down my grocery bill by $30/month,” or “I’d like to do a car insurance comparison every six months to optimize insurance premiums?” While you may not be in such a category, it is probably the case that many consumers look on too grand a scale.

In itself, there is nothing wrong with this. However, do two things in relationship with this concept:

• Take your big goals and make them realistic, on a smaller scale. If you want to boost your retirement plan, perhaps you could allocate an extra $50/month to a savings account by cutting down on some area of your budget.
• Have independent “lesser” goals, in magnitude. For instance, maybe you want to cut down on eating out. However, maybe you could set some realistic limits on eating out – even on a weekly scale. You can find some reasonably-priced takeout options, and so on, and still save, right?

Budgeting goals are the key to a successful budget. Keep them reasonable, reachable, and in perspective. Don’t lose sight of them as they will lead you to success.

My personal payday loan experience was not a bad one. In the summer of 1998 I abruptly quit my job and did not have much in savings. This was not one of the smartest things I have done. I was able to find another job after a couple of weeks but it paid much less. On top of that my roommate had moved out and was not able to completely cover his half of the rent. I was barely scraping by. After paying all my bills I had less than $10 in my checking account.

Starting that spring and into the summer I had been training for my first marathon. This had been a goal of mine for a long time and I was finally about to make it reality. Unfortunately, the marathon was in San Fransisco and I lived in Las Vegas. I didn’t have enough money to drive up there and back and get a room for the night. I didn’t want to just give up on my goal. I had seen ads for payday loans in the paper so I decided to check one out. The process was pretty simple, they would give me a cash advance of $100 and I wrote them a check for $110 that would be cashed on my next payday. This was enough money for to me buy gas to get there and back and get a bunk in a hostel for the night. I was able to fulfill a goal I had worked towards for a long time and paid the loan off on my next payday. The payday loan worked great for my situation. Nowadays, I am better at managing my finances and should not find myself in such a situation again.

I was confident I would be able to pay the loan off because I had secured another part-time job that was going to be starting the day after the marathon. Also, I was moving into a much cheaper apartment. If I hadn’t been confident that I was going to be able to pay off the loan on my next payday I wouldn’t have taken it. The $10 fee was a cheap price to pay to be able to fulfill a dream but if I would have had to continually roll over the loan it could have gotten very expensive.

Payday loans are still around and now it is even possible to get online loans. I think these loans are an acceptable option in some situations but if you are confident you will be able to promptly pay back the loan I would look for other options.

The following is a guest post.

Do you think of your finances as requiring a seasonal overhaul? If you don’t, then you should. Just as our everyday necessities change from season to season, our financial requirements also change.

Whether you’re considering getting help from a loan from a price comparison site like http://www.moneysupermarket.com/loans/, or you’re just in need of a little organization, spring is a good time to put your financial house in order.

Here are a few things you can do to spring clean your finances:

• Take a look at your utility bills. Utility rates typically go down in the spring, because you can turn off the heat and you don’t yet need to resort to air conditioning. You can take these savings from your utility bills and invest them into your vacation fund. By doing this, you’ll be able to borrow less or charge less when it’s time to take your summer trip.

• Check your cable and internet bills and try to negotiate a cheaper rate. With vacation time coming up, people will be away from their TVs more and cable companies want to make sure that they don’t lose any customers. Quite often, they’re only too glad to offer you a seasonal, six-month promotional special or bundle, especially if you’re a long-time customer.

The only catch is, they’re not going to call you; you’ll have to call them and ask if there are any promotions going on and if you can get in on them.

• Consider refinancing your mortgage. It’s a good time to take advantage of today’s low interest rates. If your credit is good and you’ve been on time with your payments, chances are you should be able to get a good deal that could potentially save you hundreds of dollars a month.

If you have an adjustable rate mortgage, you could also consider getting a fixed-rate mortgage, which will lock your lower interest rate in for the duration of the loan.

• Transfer a few credit card balances. By transferring your existing credit card balance to a new credit card with a promotional zero % interest rate, you could save hundreds of dollars a year.

• Consider the benefits of a personal loan. If you need to take care of some home improvement projects, or if you’d like to take out a loan to help you eradicate some of the other debts you’re carrying every month, the present low APR rates can be greatly to your advantage. Additionally, personal loans tend to have significantly lower interest rates than other types of loans, particularly revolving loans such as credit cards.

• Take a look at cash back credit cards. With today’s high gas prices, having a credit card that gives you cash back for gas purchases can help you save hundreds of dollars a year. Likewise, credit cards offering travel miles can be a great help if you’re a frequent flyer. A number of cards also offer cash back for everyday items such as groceries; this can also represent a significant annual savings.

• Examine your bank accounts. Are you getting the best interest rates, or should you switch to another type of checking or savings account? Banks are constantly changing their services, but they may not always let you know, so it’s a good idea to talk to a bank manager and find out if you’re getting the most for your money.

By looking for loans, you can decide whether or not a personal loan should be part of your financial overhaul this spring. In the end, you’ll be able to enjoy your upcoming summer vacation a lot more if you know that you’ve got your finances completely under control.

Starting to live frugally is an exciting prospect. Finding places to cut expenditures, socking money away in savings, and hunting for deals are all pretty fun. But after a couple of days, or weeks, or months, something quite unfortunate happens: it gets harder.

A lot harder, actually. So much harder, in fact, that many people give up on budgeting entirely, or decide that they can assume their budget is on track without continuing to update it. Other people just get bored, or slip back into their old lifestyle so slowly that they hardly notice it. But I’m here to tell you that if you can fight your way up the hill of budgetary hard times, a beautiful thing happens: it gets easier.

It gets easier because eventually frugality becomes your new normal. You get used to searching for deals, keeping receipts, clipping coupons, and tracking expenses, until one day you wake up to find that it has become second nature. You get used to taking the time to compare car insurance, phone plans, strawberries, socks, and everything in between. But that transition takes time.

I know it took a lot longer than I thought it would, but it has recently occurred to my husband and I that we don’t want to live much less frugally than we do. Don’t misunderstand me, we certainly wouldn’t mind having a few more dollars in the budget, but we don’t want to start buying pre-packaged convenience foods, for example. Our diet is made up of fresh produce and wonderful meals we make for ourselves; we have found our own ways to make those meals fast and convenient.

I used to love going out for ice cream, but now I shudder at the truly ridiculous cost. What we have learned is that when the mood to indulge ourselves strikes, we can go to the grocery store, buy a full-size container of ice cream each, be money ahead and have plenty of ice cream left over. Now that’s a win-win!

The point is that over time, you learn how to satisfy your impulses without breaking your budget. Too many people get to the period where things get hard and give up before they’ve had a chance to learn to cope. If you don’t press on, you’ll waste a lot of time, energy, and money on yo-yo budgeting when you could have just stuck to one solid plan.

So how can this knowledge help you if you’re struggling in the midst of the hard part? First of all, it tells you that you’re not alone in your difficulties. That means that others have hung on to their budget in the face of temptation, and you can too. It also means that solutions are out there if you take the time to look for them. Whether you’re new to budgeting and frugal living or you’ve been at it for a long time, having like-minded friends and connections will help you.

Finally, it means that the hard part really will come to an end someday. That isn’t to say that you’ll never be tempted by purchases you shouldn’t make, or that you’ll always make the right choices. It just means that life will get that much easier.

Frugal Living Tip: It Gets Easier is a Guest Post by Sabrina at Wallet Watcher

The following is a guest post by Lisa @ Car Insurance Comparison, a personal finance blog which offers money saving tips and guidelines.

Earning money at a relatively young age can help teach a number of life lessons. Learning responsibility and the value of money begin the journey toward becoming financially capable – and financially stable. If your child or teen is ready to move forward toward becoming fiscally fit, for some of the following ideas might be good ways for them to earn some cash for the holidays – and perhaps even to budget for the future.
1. Work at Home
While most kids aren’t ready to enter the freelance world just yet, laundry and other household chores are great ways to start earning a bit around the house. This is something that will clearly pay off as well, as – unfortunately – they will need to learn these basic things sooner or later. From the washing machine to the dishwasher, these represent a field of enterprises that are rather simple and easy.
2. Babysitting
Once your child reaches the appropriate age, he or she may consider babysitting for a little extra cash. One way to decide whether your child is responsible enough – and emotionally ready – to earn money babysitting, if to offer to sign him or her up for a Red Cross Babysitting Class. Kids who balk at acquiring the skills necessary to care for younger children may not be ready for the task at hand. If they do prove to be ready and responsible, start within the family and good friends, and then maybe extend from there. And be sure to check the laws: some U.S. states regulate babysitting and work (i.e. minimum wage and employment laws for 20+ hours a week.)
3. Any Old Toys?
Maybe your child has some toys that they don’t play with any longer. If he or she wants to buy new ones, perhaps it’s time to go the yard sale route. That is a cost-effective way to earn money for a trip to the store, or for pre-teens, a good way to weed out their never-used childhood toys and get money for the new items of importance: posters, jewelry, clothing, entertainment, and room décor.
4. Yard Work
You might remember the old days: mowing the yard early on Saturday morning, listening to your portable tape player and headphones. Well, some pastimes can be passed down from generation to generation, and this area is no exception. From moving the lawn to helping with mulch and other tasks, your child can do some work and enjoy the nice weather.
Once your son or daughter has a good grasp of how to use the mower, trimmer, and such, perhaps this could be a way for him or her to earn some spending money. Setup a schedule for the yard work and the older child will be on the way to a regular job, so to speak.
5. The World of Cleaning
This is a catch-all word that could be good for many ages: cleaning.
Think of all the things that can be cleaned around and outside of the house. Younger children could start with the more simple items, such as dusting surfaces and their own room – to the delight of their parents. However, there is plenty of room for more advanced items, like cleaning the family pet or washing/detailing the car. Neighbors may pay to have their own cars cleaned or detailed – or their garages organized.
6. Summer Jobs
Teenagers will sooner or later want a “real job.” Or, to put it more precisely, they will want the monetary benefits that come with having a traditional job of some kind.
Summer jobs offer a great way to start the resume. A teen might consider some of the usual options, such as fast food or the general service industry, or see what else is out there, such as helping out at a camp – and eventually working during the summer as a camp leader. As a parent, you also might encourage an internship; even though these opportunities aren’t paid, it would offer great work experience.
Keep in mind: when kids get jobs, and are under the driving age, the transportation issue may fall into your hands. In the summer months, many can walk, bike, or even take the bus. In all, helping your child to learn a strong work ethic and solid money-management techniques is paramount to their successful adulthood.
How do your kids earn money around the house or in the community? Have you found that the economy has created less of a niche market for kids who have the desire to work? Share your thoughts here!

Banks are currently in a fierce competition for your deposit dollars. You can benefit from that competition by taking advantage of incentives that banks offer you to open an account. I have made $1000a over the past few years from bank and other bonuses. You can do the same by just following a few simple steps.

First,you need to find a bank that will pay you a bonus for opening a bank account. This can be done by browsing the web sites listed in the resources or just looking through your local newspaper.

Then you need to evaluate whether the bonus is a good deal or not. Probably the best known bonus is the $25 ING Direct bonus for opening an Orange Savings Account with $250. You are paid the money in 30 days which amounts to a 10% return for the month or an annualized 120% return. That is a good deal.

Not all bonus deals are that good though. Another bonus option available now pays $40 for opening an account with $40,000. Obviously, that isn’t as good a return. The account might be okay for earning interest but you don’t want to open the account just for the bonus.

Look over all the qualification for the bonus and make sure you can meet them. It is common for bonuses to have a minimum deposit or direct deposit requirement. Also be on the lookout for any service fees,account closing fees, or other fees that will reduce or eliminate your bonus.

If everything looks good you just need to go ahead and open the account. I prefer to open accounts online if that is an option since it usually takes less time. Some banks will give you the bonus immediately and at other banks you have to wait a certain period of time. After you have opened one account just repeat as time and money allow.

Just when you think you’re clear to keep the $50… $100… $200 contribution to your savings account intact, another bill pops up. Or perhaps an overdraft fee squeaks through, due to the fact that you and your spouse aren’t on the same sheet of music in regard to the family finances. Overcoming those situations are a big part of reconciling your accounts and keeping an up-to-date budget plan. What do you do when there’s no money left to save at the end of the month? Perhaps it’s time to look at ways to realign the things you spend money on – and possibly come to find that there is a little bit left over, if you play your cards right.

Impulse Shopping and Self Indulgences

Cutting out unnecessary expenditures can help save a bundle over the course of a month. Whether you enjoy having a massage, getting your nails done, or playing 18-holes of golf every Sunday morning, the fact is that the “things” we spend money on selfishly could equate to thousands saved for retirement, or even to pay off credit card debt. Those trips to the corner Barista for an afternoon pick-me-up, or lunching outside the office with co-workers can add up – so perhaps taking the time to reevaluate and cut back can help keep your finances in order. It doesn’t have to be a “forever” thing… maybe you just cut back to bi-weekly manicures and work-week lunches once a month.

The Insurance Conundrum

If you’re carrying a low insurance deductible (anything less than $1,000) then you’re missing a vital area in which funds could be reallocated and placed into savings. The general population has come to understand: insurance is meant to cover large-scale accidents or emergencies. Replacing windshields and dented fenders by making an insurance claim has become a thing of the past, because the claim is generally close to the same amount as a low-end deductible. Raising your deductible to the $1,000 – $2,000 range can equate to hundreds each year in savings – especially if you’re a good driver who hasn’t seen the need to make a claim throughout the past several years.

Pimp My Ride

The experts say that driving your car for an additional 3 to 5 years after paying off the loan is one of the best ways to save money. Why? Taking that $350 per month from your former car payment and socking it away into a savings account – or a Roth IRA, if you qualify – can put you in a much better place financially than trading in the old vehicle and taking on an even larger car payment than you had before. Your previous $350 car payment turns into an annual contribution of $4,200 – or a whopping $12,600 in three years or $21,000 if you can drive your vehicle for a five year period. I don’t know about you, but imagining a $21,500 nest egg to put toward your golden years, either in savings or a Roth IRA is plenty of motivation for me to avoid another car payment!

Make Your Move

Although most people feel like they’d rather go bigger than downsize when it comes to the size of their home, some considerations should be explored when you’re looking for ways to save more money. If you live in a prestigious neighborhood and are sending the kids to private school, yet finding yourself without enough to make ends meet each month, it could be time to look at a more reasonably priced neighborhood with a strong public school system. If you already live in suburbia and can’t envision going any smaller square-footage wise, consider the option of moving into a reasonably priced bedroom community, or even pricing a unit in a similarly sized multi-family housing neighborhood instead of maintaining a home which requires more money (and time) than you have available.

The facts are plain to see: getting out of debt, saving for retirement and meeting budget milestones each month are only part of the battle. Discovering additional ways to save more money out of your regular paycheck can take your personal finances to the next level, and provide for a more comfortable future.

Are there ways you’ve found to save money by cutting out small expenses – only to come to find that you didn’t miss them nearly as much as you though you would? Share your experiences with us!

Trying to save money on your own can be difficult, especially if you don’t have a solid support system, or the tools to help with your personal finance success. Read on for four money saving strategies that can jump start your financial freedom.

The Buddy System

Sticking to a budget can be problematic when your friends are less-than-thrifty. One solid way of saving money is to get a friend on board so that you’re both working toward a common goal. Say a friend of yours needs to save $1,000 to attend his sister’s wedding 6 months from now. And perhaps you’re working on cutting out impulse spending in order to save enough to put new tires on your car before winter. Hold one another accountable, touch base on your savings goals – and use each other for support. If you feel that spending urge coming on, text or call up your friend talk through it.

The Envelope System

The envelope system is based on a simple method for paying all your bills and expenses each month in cash, and not touching what you’ve budgeted for savings or annual expenses like car insurance. First step: create a budget and write down exactly what you have to spend on each living expense line item, bill or payment. Take one regular letter-sized envelope for each expense you’ve defined on your personal budget and write on the front of the envelope “Groceries” “Medical Bills” “Fuel” and so on. Be sure to include an envelope for entertainment or “Fun” if you do spend money on things other than paying bills (Come on… don’t we all?) Each payday you will take out only as much cash as the total of all the envelopes. Fill each with the allotted amount, and pay your expenses from there. When the money’s gone, it’s gone. Note: it may not be convenient to pay major bills like the mortgage payment or car payment in cash – but you can set these items up as automatic withdrawals and plan around it.

Ghost Account

Keeping a ghost account or a “cushion” in your checking account is one way some people save money – by acting as if the funds in those accounts just don’t exist. A ghost account can work really well if you have automatic deposit for your paycheck, and you send a pre-specified amount to the ghost account each month, before it can be spent elsewhere. Most people find that keeping the checkbook for this account – or account card, debit card, ATM card – in a lock box or stashed away somewhere is the best way to go so that you’re not tempted to spend the funds in the account. The “cushion” concept can work as well – as long as you’re able to completely ignore the accumulated funds … and as long as you make the commitment to continually upping the amount of your cushion. Gradually adding any extra to the cushion amount is important.

Personal Finance Software

Online personal finance sites like Mint.com and Adaptu and Money Strands have made it easy to create your budget for free – and stick to it every day using your Smart phone or via computer. The apps for these services can tie directly to your bank account, or even a PayPal account, and are consistently updated so that you can track exactly where you stand. There are user forums and articles from the pro’s to help you stay on target and have a solid support system. Trusted sources like CNET also maintain a wide variety of personal finance freeware, spreadsheets and the like. Paid versions of software for your computer like Quicken and QuickBooks are great if you’re looking to manage your finances with all the bells and whistles… without an internet connection. These programs can be used as standalone budgeting applications, or go online to sync with bank accounts and investment accounts.

Overall, knowing where your financial weaknesses are can be the first step in successful money management. Coming up with a budget and a success strategy for your family is easy – especially with so many options to help you stay on track.

What strategies do you use to track your finances and stay on track with your budget?

Saving money can be accomplished in quite a few different ways. Whether you‘re into clipping coupons, daily deals, thrift store shopping, or living a simple life, each day brings a new challenge in working toward spending less than you save. Between trying to reduce debt, cut down on utility bills and saving for retirement, it seems that each day it becomes more important to get the most out of every paycheck. Let’s take a look at a few ways I have made a difference with the family budget by planning – and doing a little bit of painless sacrificing.

Food

Bulk buying is a convenient way to save money, and bargains from the meat counter can make for lots of leftovers which are freezer-worthy. Cook once to save time and money the rest of the week. For example, if you’ve found a deal on sirloin, plan the week’s meals around recipes which use beef, then prepare it in such a way as to allow it to be incorporated into several dishes. If you have several containers of pre-cooked meat, making dinner after a long day at work becomes much easier. Weekly meal planning saves gas by way of less trips to the grocery store, as well as energy in cooking. Another way to save on meat is to substitute legumes for one meal a week – or mix half-meat, half-beans into your recipes.

Eat Less, Save More

Intentionally eating less to save money may sound harsh, but the fact of the matter is that most adults eat 2 to three times the recommended portion size for meats, and in general they eat less than the average portion of vegetables or fiber. Consider this fact: one serving of meat should resemble the size of a deck of cards. According to the U.S. Bureau of Labor Statistics Consumer Price Index, ground beef prices had risen by 17% by June, 2011. Since meat is usually the most expensive item on the grocery budget, eating the appropriate portion is key to saving money – and maintaining your youthful figure!

Take a Hike…

…Or at least a walk. While gas prices have settled into a somewhat predictable range, one of the bigger line items in many household budgets is still fuel. Many working adults have considered or adopted carpooling or riding the bus or public transit. Walking to work – if you live within walking distance – is not only a great money-saver… it’s good for your heart. If you can’t walk to work due to distance from your job, consider walking during the lunch hour to run simple errands or pay bills. Another idea: telecommuting. If you don’t work from home and can feasibly arrange it with your boss, telecommuting can be an excellent way to save money and gas. Perhaps the boss will go for this idea… or perhaps you’ll need to ease into it. Propose to telecommute two days a week to start. Set realistic goals and meet with your boss to discuss goals, deadlines, and expectations.

Turn It Down, Put It On!

The cost of heating your home can definitely be a stressor during the winter months. Sometimes it’s necessary to spend money in order to save money – as is the case with purchasing cost-effective digital thermostats, installing weather-stripping or caulking drafty windows. Set your thermostats to 65 degrees during the times when no one is at home, and have them automatically adjust to 68 degrees during the hours when you’re around. Overnight, they thermostat can again adjust down to 65 degrees while you’re sleeping. If your family members or roommate complain about being cold, a sweater, sweatshirt, or pair of slippers can usually do the trick.

Overall, the things that we tend to waste money on can be simple to correct. Making a conscious effort to live responsibly – while keeping our finger on the pulse of living comfortably – can help stay on track budget-wise, and keep more of our hard-earned wages in our pockets.

How have you cut back or taken steps to save money in your household?