Splurging Is Okay Sometimes

Being frugal has lots of benefits. It can help us save up money for emergencies and retirement. When we lose a source of income, it can help us survive until it is replaced. And it allows us to get more for our money. The biggest drawback is that sometimes its not very much fun.

Even though we know we dont need it, it can be disheartening to see that stylish jacket or great laptop that weve been dreaming about and know its not practical to buy it. We may feel deprived when we see friends and co-workers going out to dinner at fancy restaurants and buying the things they want. Yet in the interest of frugality, we resist the urge to emulate them.

But when frugality becomes a drag, it can lead to poor morale. And that can lead to impulsive spending on small items as a way to make us feel better. Those small items add up, putting a strain on the budget. Wouldnt it make more sense to splurge every once in a while?

Hardcore frugalists cringe at the thought of splurging, but theres nothing wrong with it as long as we do so within our means. That means instead of spending money that is intended for bill paying or using a credit card, we pay for the splurge with our discretionary income. This way we avoid putting ourselves in a bind and prevent budget burnout.

Splurges come in many shapes and sizes. Those who love fashion might splurge on that unique designer dress in the boutique window. Families with young children might splurge on a trip to an amusement park. Gamers might splurge on that new gaming system that everyone has been raving about. As long as its something you will truly enjoy and springing for it wont adversely affect your finances, theres nothing wrong with it.

Thats not to say that we should make a habit of splurging. If we do, we miss the opportunity to put money to wiser use. Instead of buying a new pair of shoes every month, even if you can afford to do so, make it every four to six months. Put the money you save into your emergency fund, toward the kids college education or in a retirement fund.

Oversplurging will also make each splurge less meaningful. It is thrilling to get something that you want, but when you buy everything you fancy, the thrill fades away. And when it comes to material things, you probably wont use half of what you buy. Instead of throwing money away on something that will end up in the back of the closet, save it up for something more practical.

When we diet, its hard to stick with it because we feel deprived. An occasional splurge can help keep us on track, as long as its done in moderation. The same is true when it comes to money. By giving in to our desires on occasion without going overboard, we can feel better about being frugal and keep up the good work.

How Small Amounts Matter

Weve all heard the expression pinching pennies. Perhaps weve even laughed at it. But as insignificant as pennies may seem, a penny here and a penny there adds up. If you save up enough pennies, before long youll be counting your money in dollars.

Whether youre facing a drop in income or trying to save up some money, its important not to forget the little things. In fact, they may be the best place to start when it comes to trimming the budget. Small expenses are less likely to be missed than larger ones, and most individuals and families have lots of them. A cup of cappuccino here and a video rental there wont make a big difference in our lives either way, but combined with other small expenses, they can make a big difference in our budgets.

Heres an example. Lets say you grab a biscuit and juice or coffee at your favorite fast food place every morning for breakfast on the way to work. It costs you $3 a day. That doesnt seem like much. But if you were to eat breakfast at home, you could eat for about 50 cents each morning. In a weeks time, you would save $12.50. In a months time, youd save $50. And over the course of a year, you would save a whopping $600!

If you can save that much just by cutting one minor expense, imagine how much you could save by eliminating a few more. If you switched to a cell phone plan thats $10 cheaper, you could save $120 a year. If you buy a bottled water to take to the gym three days a week for $1.50 a pop, you could save $234 a year by bringing water from home. Just those three minor adjustments could save you a grand total of nearly $1,000 a year!

Conserving energy can also save you money while causing little or no inconvenience. For example, maybe you split your errands over two days each week. Making one trip out and running them all at one time could cut your transportation costs for that activity in half. Simple habits such as turning the lights off when you leave a room and turning the thermostat down a few degrees in the winter and up a few in the summer can also make a difference. Actual savings on these things will vary, but they add up just like anything else.

Small expenses end up costing us more than we realize. By making minor changes in the way we do things and cutting out unnecessary items, we can have more wiggle room in our budgets. This can enable us to start an emergency or retirement fund, save up for a family vacation, or buy that new appliance weve needed for so long.

What Is SHARE (Sharing Helping Always Rewards Everyone)?

The SHARE Food Network began in San Diego, California. It distributes high quality, affordable and nutritious food in order to build communities and strengthen families. The goal or theory behind the process is that you donate some of your time each month to a community task.

This volunteer service can be at your library, community center or even your local SHARE distribution location. Any other random act of kindness such as helping neighbors, teaching Sunday school as well as other community service which you are not paid to do will qualify you as well.

The food packages offer meats, fresh fruits and vegetables and grocery items. SHARE buyers make the purchase of these items from growers, brokers and packaging plants. The food is not donated, government surplus, or salvaged items.

The SHARE program is for everyone. They have been known to say: If you eat, you qualify. Everyone in the community can participate. Since the program is for everyone, it can help remove some of the barriers that divide people such barriers as religion, social and economic class, age and gender. We can really begin to see each other as real people without barriers in the way. It makes it easier to begin building communities and neighborhoods.

SHARE operates through what is known as Host Organizations. These could be a variety of organizations such as churches, tenant councils, community centers, businesses, town halls and senior centers. The Host Organizations have two responsibilities: the first being to register people who wish to purchase SHARE packages and offer them various ideas regarding the different community services they can assist with; the second is sending participants to help bag food, to pick up as well as distribute food on the designated Distribution Day at their Host Organization.

SHARE is truly an opportunity for people to not only share their own gifts with the community, but also to receive something in return. For some, it could mean that they are able to stretch their food dollars, while for others it could very well be the difference of whether or not a family will have enough food on the table.

All of the available SHARE food packages assure top value for your food-buying dollar. SHARE is not only a smart but simply way to save some money all while helping the community. How many organizations can offer the same value?

Basic foods and basic packaging are the primary goal of SHARE food packages. While the packages could possibly contain some processed foods, the majority of the food packages include basic, nutritious foods families purchase every month.

SHARE strives to provide the same quality of fresh, wholesome and healthy foods each and every month, year after year. The available Value Package always contains various meats, fresh fruits and vegetables, as well as those well-needed staple items such as beans, rice, pasta, or cereal. You may even find yourself with a few specialty items.

Currently there are more than thirty-four states which participate in this program. While they dont have a general website, each area is available online. This program not only allows hundreds of volunteers to spread a little happiness and help around their own community, but it allows them to share in the savings as well. For more information, search the internet for a SHARE Host Organization near you.

Six Ways to Set Budgeting Priorities

For some of us, budgeting is second nature. For others, it seems a nearly impossible task. There are just so many things to consider that its hard to decide where your funds should go.

Setting priorities makes budgeting much simpler. But even this is difficult for many household money managers. Priorities are somewhat subjective, and those within the household often have vastly different priorities. Here are some ways that you can make priority setting a little easier:

1. Keep first things first. When it comes down to it, there are only a few things that we truly need to survive. These things include food, water, clothing and shelter. Transportation and other things that enable us to work and continue to make money also fall into this category. These should always come first in the budget, although its always a good idea to do our best to save money on them.

2. Keep savings in mind. We all need to put money aside for emergencies and set up a retirement fund. Its also wise to set up a college fund for each of your children as early as possible. But many families push savings to the side, and it often ends up out of the picture altogether. Putting money away prior to any discretionary spending is crucial if you wish to meet your goals.

3. Evaluate your debts. If you have none, youre in the lucky minority. Most households have large amounts of debt, including mortgages, car payments, loans and credit cards. By paying your debts off as quickly as possible, you can save lots of money in the long run. And once theyre paid in full, youll have a lot more wiggle room in your monthly budget. Putting as much money as you can afford toward paying off debt will help you reach that point much faster.

4. Set goals as a family. Maybe you would all like to go on a nice vacation next summer. Get everyone involved in deciding where to go, then calculate your expenses. Get everyone involved in saving money for this goal. Not only will you get to go on a family trip, youll also be teaching your children about budgeting and teamwork.

5. Review your budget periodically. A familys needs change over time, and if your budget is no longer meeting your needs, its time for a change. Once again, youll need input from everyone in the family to make this work.

Priorities are at the heart of a successful budget. By keeping them in mind, we can resist impulse spending and make progress toward our financial goals. And by getting input from the entire family, you can gain valuable insight into individual needs and encourage interest in working together to keep your finances in good shape.

How Much Money Should I Set Aside for Emergencies?

No matter who you are, an emergency of some kind will affect you at some point in your life. Unfortunately, few people are prepared when disaster strikes. And thats especially true when it comes to financial emergencies.

Financial emergencies come in all shapes and sizes. Job loss is a big (and increasingly common) one, as is disability. The need for car repairs is not as devastating, but if you count on your car to get back and forth to work, its something that must be taken care of immediately. Even the death of a major appliance can strike a severe blow if you dont have an emergency fund.

We all know that its smart to have some money socked away for a rainy day. But we dont all make an effort to do so. A common reason given for lack of an emergency fund is that one cant afford to save money. But if you think about it, you really cant afford not to. If something were to happen and you didnt have any money to take care of it, your only alternative would be to use credit. And thats not always an option.

Finding money to put toward an emergency fund is not as difficult as most people think. If you eliminate unnecessary expenses from your budget, you should be able to find at least a little money to set aside each month. Even if its just $10, its a start. But how much should one aim to accumulate in an emergency fund?

Experts have differing opinions on how large an emergency fund should be. Some say you should have three to six months salary. Others say enough to cover your minimum expenses for three to six months. And still others argue that you should not work on an emergency fund until youve paid off any credit card debt you have.

The truth is, theres no one-size-fits-all answer. How much you need in an emergency fund depends on a number of factors. If youre single and in a high-demand profession, you might be able to get by with less than a family man in a less dependable occupation. If youre self-employed, you may need more than most people because you wont be able to fall back on unemployment if you run low on work. If youre retired, you might need more than someone whos still in the workforce. And if you dont have adequate health and disability insurance, its very important to have a large financial cushion.

Still, the guidelines provided by financial gurus are helpful. It is certainly a good idea to have at least enough money put away to cover necessities and minimum payments on bills for a few months. And if you have accumulated a large amount of high-interest debt, it might be wise to save up $1,000 or so and then work on paying off your balances before continuing.

No matter how much money you make, having an emergency fund is essential. Even if its only a months salary, it will help prevent small emergencies from striking a crushing blow to your finances. And its okay if building up an adequate fund takes a while. With each little bit you put away, you become a little more financially secure.