A Budget is not for Babies!

Most people do not have budget.

Budgets have really gotten a bad rap! The feelings that the word ‘budget’ evokes are usually negative and constraining. Budgets are usually associated with restricting the activities that are enjoyable. It does not have to be that way! Think instead, ‘spending plan’!

Income – expenses = Spending plan!

The calculations required is grade school math, therefore, everyone is qualified to make a spending plan.

The National Syndicated Radio Host Dave Ramsey recommends a zero based budget which means the income minus the expenses equals zero. He says to “spend every dollar on paper before the month begins.”

Budgets, AKA Spending Plans, can be written on paper, saved on a computer document or created in a computer software program. A great free online budgeting tool is available at http://www.mint.com/

It is important that all monthly expenses are covered by the income coming into the home. This will avoid the need to use credit card debt for basic living expenses. Credit should not be used to purchase items which you cannot afford!

If the expenses exceed the income, a deficit is present. The expenses must be reduced or income increased to balance the budget. If the income exceeds the expenses, this surplus allows additional savings or preparing for upcoming predictable expenses.

Predictable expenses are maintenance, holidays, bills or miscellaneous things that may not come due every month. A few examples would include Christmas, tires for the car, personal property taxes, and car insurance premiums. These expenses are not surprises but they can take the wallet by surprise!

Be prepared for these ‘budget busters’ by saving some money the expenses each month. Some things are not UNEXPECTED expenses is a Savvy Saver article that details a great method to be prepared for these kind of expenses.

Virginia Saves motto is ‘Start small, think big.’ Start small by creating a budget for you family this month! Think big. You may have to be creative to make all expenses to fit into that first budget.

Budgeting is the first step toward financial freedom! Will you take that step?

Home is where the financial lessons start

Remember, the little ones are learning how to manage money by your example. Children learn a whole lot from what they see modeled in everyday life. They see how family members spend, save, give money. They are forming their ideas about the value of money.


The last video in the series Financial Planning for Your Future is about the next generation.


Week six: Teach Your Children





Kids are very smart and it is never too early teaching them about money. Chores teach children they must get a good job to have money to support a family. A child may not like it when a toy cannot be bought, but that is a real life lesson. Teach children to purchase needs before wants! Scarcity is real. That means wants will always outnumber the bills in a wallet.


For more information, check out these sites:


Virginia Saves Parent Resources


Teaching Kids About Money


Virginia Saves hopes you have enjoyed this six part video series. Please feel free to leave a comment of contact us at virginiasaves@gmail.com

Retirement - Reinvent Yourself

The fifth video in the series of Financial Planning for Your Future gives new ideas about retirement. Here is a great perspective that may give hope to those close, and not so close, to retirement age.


Week three: Retirement- Reinvent yourself

Make More Money

When it comes to saving money, you have two options – cut expenses or increase your dispensable income. For most Americans, our largest expenses such as housing and transportation are fixed and cannot easily be reduced. So what do you do when you’ve cut all the expenses you can?

Get rid of things you no longer need:

Take a look in your closets, attic, or storage space. Chances are you’ve accumulated some items you no longer need. Sell unwanted items like DVDs, video games, or comic books to specialty stores which generally give you a better deal.

For collector’s items or items of higher value, list online through auction websites.

Hold a garage or yard sale to get rid of your remaining items or things of lower value. If you don’t have much to sell, consider hosting a joint or neighborhood sale to increase traffic.

Monetize your hobbies:
If you are a gifted crafter, consider selling your crafts at local fairs or online.
Got a way with words? Make money through blogging by charging for ad space. The larger your number of readers, the more you can charge for ad space. Additionally, freelance writing or editing opportunities can be found online.

Online stock photography sites allow users to submit and sell their photos online. Each time someone uses your photo, you’ll receive a small stipend.

Other ways to supplement your salary:
Participate in medical or market research studies. Companies often hire research firms to do market research on new products. By donating a few hours of your time, you can make $50-$200.

Get a second job. If you work a traditional 9-5 schedule, consider working 10-15 hours a week at a restaurant or retail store. Work at an establishment you already frequent, and as an added bonus, you’ll receive employee discounts on merchandise.

Make sure to bank your extra income towards your savings goal! Track your progress towards a savings goal by joining Virginia Saves, and using the America Saves My Savings Tracker for free to record deposits and monitor your progress.