Secure Your Financial Future

None of us knows what the future holds, which is why it is so important that we are always as prepared as we can possibly be for any eventuality.

A big part of this is doing everything we can to ensure that we are in a strong financial position as time goes by. 

Knowing that we have money in the bank is an excellent way to give us peace of mind and enable us to live in some comfort when we’re older, but how exactly do you go about securing your financial future? Here are a few things that will certainly help:

Track your expenditure

Tracking your expenditure will give you a good idea of how you currently spend your money.

Once you know where your money is being spent each month, you will be able to implement a budget to cut down on non-essential costs and enable you to save more money for your future.

So many of us waste so much money on things we don’t even notice like takeout coffee and subscriptions we never use, that tracking expenses for a month or two can be a huge eye-opener, which is why it is an essential first step to becoming financially secure in the future.

Deal with debts

Being in debt is never ideal. It prevents you from saving money for your future and leaves you with more uncertainty than is strictly necessary for life, so it makes sense to do what you can to pay down debts as soon as possible.

Whether you look into the Debt to Success System or start paying twice the minimum payment to clear debts fast, anything you do that minimizes your burden now will be good for your future. Once you’re out of debt, do everything you can to stay out of debt and your future will thank you.

Build an emergency fund

Emergencies are, by their very nature, unpredictable. We never know when we’re going to have to deal with a financial emergency such as a large vet’s bill or unavoidable medical expenses, and that’s why we should all be building up an emergency fund.

Start by setting aside a few dollars – as many as you can spare- every week and eventually you will have a significant pot of money that you can dip in when you need to without having to get into debt or scramble around trying to make ends meet.

Pay into a retirement fund

Make your 401(k) a priority starting now. Pay as much as you can afford into it and keep building and building upon it for as long as you’re working. that way, not only will you not have to worry about retirement, but you’ll also be able to retire early than many of your peers who don’t take this kind of thing seriously.

These may seem like simple steps, but you’s be surprised how many people do none of them and have much less secure future as a result. Don’t be like them and put these very simple steps into action today!

What Happens When You Save $1,000 Per Month For Ten Years?

Albert Einstein once famously quipped that compound interest was the most potent force in the world.

And, just as with most things, he was right. Unlike other forces, compounding works exponentially, and ad infinitum.

Once you put money away, it never stops growing. And as it grows, the amount you add to your wealth each year increases.

A small annual gain of $1,000, can balloon to more than $50,000 after ten years of consistent effort. 

To the average person, the idea that you could make $50,000 per year merely saving money seems pretty far-fetched.

That’s like replacing one person’s entire annual income without having to do any actual work.

But when you do the maths, that’s what you find. You really can create a viable passive income with consistent savings and a conservative investment strategy.

You don’t have to take huge risks. The only requirement is that you’re in it for the long-term. 

The authors of dividend investing books will often talk about the importance of consistency when investing.

Ultimately, that’s the aim of the game. If you want to get the pot of gold at the end of the rainbow, you have to be willing to do what others aren’t: forgo current income for more money in the future.

It’s a tough ask, but one that allows you to get the best that life has to offer in the future. 

Passive Income From Saving $1,000 Per Month For Ten Years

Let’s say that you commit to investing $1,000 per month for ten years. What can you expect your life to look like? 

If the market returns 8 percent, you can expect to make around $13,000 per year in interest income alone by the end of that period – and that’s if you start from scratch. If you get an inheritance of $100,000, interest payments balloon to an expected $28,800 per year. 

And the numbers keep on climbing. Suppose you keep saving for another ten years. In that case, annual passive income going into your accounts hits $76,000 – more than most households earn per year. 

Is It Feasible? 

But is saving that kind of money realistic? Can the average household do it?

Well, it very much depends on your circumstances. But the trick is to live below your means and enjoy it. If you don’t learn to love living with less, you’ll feel like you’re serving a life sentence. 

If, however, you can become comfortable with the idea, then suddenly, it feels like a good thing. You begin to enjoy saving, knowing that you’re building a stable and secure financial future.

That in itself can be a reward – as is the satisfaction of knowing you achieved it. 

Saving money is a tough gig, but the payoffs are tremendous. Do it for long enough, and you will often get to the stage where your ability to generate passive income outruns your capacity to spend it.

You’ll spend a long time getting there if you take the conventional route. But get there, you will!

Protecting Your Rights as an Employee after a Workplace Injury

After a workplace injury, many employees will often be worried about what to do next.

What you need to know is that you have a right to a safe working environment.

Therefore, you are entitled to compensation for lost wages, pain, suffering, and other damages.

Let’s take you through what you need to do after a workplace accident to protect your safety and rights.

Reporting the injury

For starters, you need to report the injury to your employer. Employers will often protect employees via an insurance policy known as workers’ compensation.

Depending on the laws, you are supposed to report the incident immediately and start the process of filing a workers’ comp claim.

Tip: Keep in mind that your employer might try to persuade you to use your health insurance to avoid filing a workers’ comp claim. It is illegal, and you have the right to say no to that!

Seeking medical treatment

You also have the right to seek medical treatment after a workplace accident.

You should visit a qualified medical doctor who will examine the extent of the injury and ensure that you receive the right medical attention.

You will get your medical report and advice on whether you need bed rest and later resume work.

A medical report will be useful if there will be a dispute as you seek compensation for a workplace accident. Visiting a doctor will also help assess the extent of injuries suffered and the projected health risks. This will come in handy as you seek compensation.

Tip: Don’t underestimate the injuries sustained given they can grow worse with time.

Working with an experienced lawyer

Filing compensation can get complicated depending on the workplace injuries suffered. Again, your employer should not lure or force you against claiming for this compensation.

If that happens, then it is best to seek help from an experienced lawyer who can help protect your rights. You also have the right to seek compensation if you lost your loved one to a workplace incident that led to death.

For example, you can file a wrongful death lawsuit to help recover medical, funeral expenses, lost income, etc.

As a rule of thumb, you should work with an attorney with a proven track record in personal injury and wrongful death cases caused by workplace incidents.

Suing a third-party for a workplace injury

You can also be injured by accidents caused by a third-party that is not your employer.

In this case, you are allowed to file a claim against the party at fault. For example, third-party claims can occur when a manufacturer may have produced substandard goods through negligence which may have caused the workplace injury.

In this case, seeking third party compensation will help recover the damages caused, including pain and suffering caused by the injury.

Wrap Up

We hope you now know a thing or two about protecting your rights if you are injured at work. Our tips should help you avoid harassments and manipulation from your employer.

It is illegal for your boss to prevent you from pursuing your rights. Your employer will be at risk of a penalty if they make it difficult for you to be compensated. Speak to a personal injury attorney to help you fight for what you deserve!

 

 

Amputation After Accident: Dealing With Financial Implications

Serious car accidents lead to catastrophic injuries, which have adverse consequences such as permanent disabilities and amputation. 

When something as disconcerting as amputation occurs, the impact goes beyond physical pain and suffering. 

There can be massive financial setbacks that stay with you for a lifetime. To start with, you will need to spend a massive sum on treatment and rehabilitation to become independent. 

Moreover, you cannot expect to get back to work normally, particularly if the nature of your job depends mainly on your mobility.

Also, there is a lot of mental anguish that you and your family will have to deal with. Flashbacks to the accidents may scare you and the sight of the loved one without a limb is not easy for the family to bear. 

At the same time, lost income is bound to cause stress and anxiety for everyone. Dealing with the financial implications of amputation is a big challenge but this is something you will have to manage to get your life back on track. 

Here are some facts that you need to know and understand about dealing with such a situation.

Assessment of financial losses caused by amputation

When you have an accident, there is always a financial loss. You can well imagine the extent of these losses if something as serious as amputation happens. 

Although it may not be possible to assess the value of a lost limb, you still have to calculate the financial losses caused by the event. 

Fortunately, the law comes with a system to facilitate this assessment to a reasonable degree of accuracy. 

Typically, the loss caused by amputation includes the cost of surgery, medical bills, replacement limbs or prosthetics, and rehabilitation. 

Further, it also adds up the loss of earning after the event because you will probably not be able to work normally after losing a limb.

The cost of adaptation of your living space and car can also be included in the losses caused by the amputation.

Understanding the factors that affect compensation value

Although the law has some guidelines related to the calculation of financial losses caused by amputation, you can never be too sure about the compensation value. 

There isn’t a one-size-fits-all method for calculating it; rather you will have to consider certain factors while doing so. 

These include the type of amputation (whether traumatic or surgical), the injury that necessitated the amputation, your age and gender, and the level of pain, long term prognosis, and trauma it has led to.

Ideally, you should seek the advice of an expert accident lawyer to calculate the compensation value that you should rightfully get.

amputation after accident

Filing a claim for amputation compensation 

Life after facing an amputation is never the same. If you go through such a drastic event due to an accident caused by someone else’s negligence, you deserve to be compensated. 

The compensation should be enough to cover your financial losses as well as physical suffering and mental trauma. 

The best thing to do would be to hire a skilled car accident attorney who can help you with an accurate assessment of the compensation value and also secure what is rightfully yours. 

Since such cases involve high-value claims, you can expect the other side to try everything possible to avoid compensating you fairly. 

But with an expert handling your case, the process of securing your claim may get easier and quicker.

Restoring the quality of life after amputation 

Apart from the financial implications of amputation, it has a far-reaching impact on the quality of life of the victim. It is hard to say if you will ever be able to restore the full quality of life after losing a limb. 

However, getting your rightful compensation can make some difference in this context. Since you will need physical and occupational therapies, compensation can help. 

Also, there could be future surgeries and rehabilitation in the store, which you will be able to manage with the claim. 

Additionally, your family will be financially sorted even if you lose your job or earning capacity. To add to everything, you are in a better state of mind with compensation that secures you and your family on the financial front at least. 

Coping with amputation is not easy but when something this tragic happens, you have no choices. 

The only thing that gives solace in such a situation is that you can claim lawful compensation if injured due to the negligence of the other driver. 

Thankfully, a legal expert can help you get a claim value that can get your finances back on track after such a catastrophe. 

Education: We Know It’s Vital For Success. But Why?

You would think that dropping out of college would be the best thing that you could do for your career. The founders of Google did it. So did Bill Gates, the father of Microsoft and the modern PC. 

But when you look at the figures more generally, you see that giving up on your degree isn’t a route to success – quite the opposite, in fact.

People with “some college education” fare much worse overall compared to those who graduate, both financially and elsewhere. 

So what’s going on here? First, it’s important to point out that some people do just get lucky.

Larry Page and Sergey Brin never expected that founding a search engine would make billionaires of both of them. It was far-fetched. And yet it happened.

Likewise, it is unlikely Gates would have predicted his eventual financial success in the early 1980s. For him, the job was an exciting experiment. 

But even in these cases, education played a role. Both the Google founders were at top universities, with one of them studying for a doctorate.

And Gates is famous for continuously reading and educating himself. He does it for fun.

So it’s not correct to say that education plagued no role. In fact, it would have been impossible for these guys to earn the success that they did without some serious learning along the way. 

Education Is Not A Waste Of Time

Education can sometimes feel like a waste of time while you’re doing it. (The partying is, in large part, a way to paper over that perception).

And in hindsight, the years can sometimes feel like lost time. You could have been earning money. 

But when you look at the data, it tells a different story. People who are college-educated earn substantially more throughout their lives, even when you calculate the present value of future income.

The effort is worth it, especially if you get the right qualifications for the market. 

If you choose to find a nursing school, you’re actually setting yourself up for success.

Remember, some sectors of the economy are going to expand faster than others, offering those in them higher pay and more opportunities for advancement.

Healthcare is going to become a bigger and bigger part of an expanding economy. In twenty years, the sector could be double the size it is today. 

Something similar is happening in technology. People with database skills will find themselves in constant demand. Education provides them with the raw tools they need. 

Entrepreneurs Still Need Training

Some entrepreneurs are not experts in their respective fields, but they are a dying breed.

The opportunities for non-technical people to lead businesses are dwindling, even if they’re not actively involved in the nuts and bolts themselves.

That’s because leaders need to have a broad understanding of the goals and capabilities of their firms to make reasonable decisions. 

So, even if you’re looking to go for the top job roles in society, you need some training.

It gives you a vital context for the decisions you’ll make in the future. 

Educational Achievements Link Up To Provide You With Market Advantage

It’s worth noting that the broader your educational training, the more you can link valuable skills together.

Suppose you decide to go down the career route as an accountant. You can earn a pretty decent living this way.

Companies, however, would ideally prefer to employ people with both accounting and marketing intelligence. 

The reason? Having both allows accountants to assess the financial value of marketing campaigns and the returns they’re likely to generate. The interdisciplinary synergies could be profound. 

A similar principle applies to people who consider themselves “generalists.”

There’s massive value here too. Firms often need people who can see the broader picture and how all the pieces fit together.

Dipping in and out of multiple fields allows the brain to link concepts and generate new ideas.

These contributions can be the most valuable thing that an organization ever receives from its employees.

And they are things that are less likely to emerge from technical specialists who only focus on one area. 

The Professional Halo Effect

Finally, education provides a firm grip on professionalism. This point is not moot.

Remember, we still live in a society where a person’s educational background means as much, if not more, than what they are actually capable of doing.

If you want to get into one of the professions, therefore, you have to get over the educational hurdles. Once you do, you effectively shield yourself from the competition, increasing your wages. 

Coping With Wrongful Death Of Your Spouse: How To Recuperate Financially

Losing your spouse can be the most painful experience, particularly when it happens because of a mishap caused by someone else’s negligence. 

In such situations, the family ends up suffering from financial consequences along with grief. 

As the surviving spouse, you may suddenly find yourself struggling with money, particularly if the dead partner was a sole or major contributor. 

Things can get tougher if you have dependents to look after and money seems to be running out. 

Apart from coping with the grief of the loss, you will have to make efforts to recuperate financially. 

While recovering from the loss can be a humongous task, here are some things that can help you get your finances on track.

Assess your current financial position 

When you are still in shock or grieving, managing finances may be the last thing on your mind. 

In fact, it is easy to be overwhelmed by the sheer number and complexity of financial matters to be settled in the weeks or months after the spouse’s death. But this is where you have to start. 

There will be some tasks that require immediate attention, specifically an assessment of your current financial position would be mandatory. 

The best thing to do is to organize records and paperwork so that you may determine your assets, liabilities, and income potential for the future. Seek the assistance of professional advisers to get things sorted out.

File a compensation claim

Once you have a clear view of things after the initial shock is over, you would want to make sure that the person responsible for the death of your partner is punished. 

The next step would be to look for an attorney who can help you file a wrongful death case to get you justice and fair compensation. 

The lawsuit serves as a tangible step to bring your finances back on track by getting the compensation you deserve. 

At the same time, you will want the responsible person to pay for their actions. Such cases are complex and require the right evidence and arguments. 

So it makes sense to find a seasoned attorney who is capable of getting you a favorable verdict.

Plan for the future

The loss of your partner is nothing short of a major blow but life has to go on. If you have a family to take care of, financial planning does not remain a choice. 

You will need to cover the basics, from retitling assets to debt management, estate closure, and filing a final tax return on the behalf of the deceased spouse. 

These steps are important to start with a clean slate and move ahead with rebuilding your finances. 

Additionally, you will also have to take the appropriate steps to claim death benefits through annuities, life insurance policies, and Social Security benefits. 

Finding alternative sources of income is equally important because you will have to manage finances alone. 

Finding a job if you are not working is a good idea. Consider investing the compensation and death benefits to get a regular income stream.

Dealing with financials may not seem like an easy thing to do when you lose your spouse unexpectedly. 

But this is something you cannot ignore- rather, the sooner you get things sorted out, the better it is.

Manage Your Money Like a Millionaire

When you’re looking for advice or inspiration, it’s always good to seek it from people who have already achieved your goals.

If you want to find ways to manage your money more effectively and grow your capital, who better to ask than a millionaire?

To give yourself the kickstart your need, take a look at these top tips and start managing your money like a millionaire today.

Get Out of Debt

Millionaires know that unmanageable debt is a road to ruin. Why pay high-interest rates and finance charges when you don’t have to?

There are plenty of debt strategies to help you achieve financial freedom but be sure to find out if they’ve worked for other people before you forge ahead. See www.DTSS.us Blogspot reviews to discover if the Debt to Success system can work for you, for example.

With so many debt relief options out there, paying off your debts needn’t be as difficult as you think.

Start Investing

Investing your money enables you to increase your capital and even generate short-term income.

By choosing the level of risk you’re comfortable with, you can make a surprising amount over a relatively short period of time.

However, it is important to take the time to fully understand your investment options before you move forward.

High reward investment opportunities typically carry a high risk, so only take the plunge if you can afford to lose your initial investment.

There are plenty of low and medium risk options, however, so you can still invest successfully, even if you don’t want to wager with high-risk opportunities.

Get On The Property Ladder

Buying a home, rather than renting, means you’ll have something to show for your investment once you’ve paid off your mortgage.

What’s more – getting on the property ladder can be a great way to invest your cash.

You don’t have to buy a property outright in order to generate money from it.

Joint property purchases enable you to invest in bricks and mortar with reduced capital but still give you the chance to increase your funds over time.

Live Below Your Means

If you think that millionaires spend money constantly, think again.

Wealthy people can be fairly frugal, so don’t get caught up in living a luxury lifestyle if you want to hold on to your funds.

Living below your means ensures you’ll have extra funds to invest, which can increase your capital in the long run.

While there are some purchases that can enhance your finances, such as property, others will quickly deplete your capital.

Consult a Financial Adviser

Millionaires rarely manage their own finances. Instead, they rely on teams of advisers, planners, accountants, and lawyers.

By getting advice from professionals, you can make the best decisions for your finances and your own personal circumstances.  

Increase Your Capital and Secure Your Financial Future

Managing your money like a millionaire can put you on the road to financial freedom.

With the right approach to your finances, you can ensure you remain free from debt and build your capital over time.

By doing so, you’ll consistently increase your wealth and enjoy a secure financial future.

 

Investing In Gold: What Are Your Options?

There’s gold in them ‘thar hills! Well, that’s the saying, anyway. But if you want to invest in gold, you will be pleased to know that you don’t have to go digging for it. Well, not unless you want to. 

Is It Worth Investing In Gold? 

Well, as another addition to your investment portfolio, we would have to say yes.

Financial experts suggest this is one investment type that is free from the effects of inflation, so you have less need to worry about gold losing its value.

Gold also provides greater returns than some other financial assets, so it’s certainly an option when trying to build your wealth.

What are your options?

There are three main options when investing in gold.

  • Gold exchange trading funds
  • Gold coins
  • Mining stocks

Gold Exchange Trading Funds

This is a common way to invest in gold, as you can buy and sell through a discount broker. Gold ETF’s are handled like traditional stocks, so you won’t actually own the gold that is being traded.

Rather than receiving gold after redeeming your ETF, you will be rewarded with the cash equivalent.

While this might be a blow to you if you had dreams of owning gold for real, you should at least be thankful that you won’t have that risk of being it stolen.

There is more information on Gold ETF’s here.

Gold Coins

If you want to own gold, then investing in gold coins is the way to go.

Unfortunately, you are unlikely to find somebody selling gold coins on the high street, but there are a number of websites online where buying gold coins is possible.

However, you do need to be careful. Not every site is reputable, and you could get ripped off, so it’s important to do your homework before purchasing. 

When buying, you have a choice between collector’s coins, which sell at a high premium, and bullion coins which are less expensive.

Buy according to your budget, but be sure to store your coins in a safe for security.

Be careful how you handle your coins too, as you want to avoid damaging them.

Thankfully, as answered in the article Does gold tarnish over time, the risk of damage is minimized when buying coins, but you should still adhere to the advice given. 

After purchasing, you then need to sell your gold coins for a profit. You need to do this when the value of gold is rising, so it pays to bide your time.

There is more information here if this type of investment appeals to you. 

Mining Stocks

These are investments in companies that mine for precious metals.

If you are already familiar with stock investments, you will have the groundwork needed to start investing in this way.

You might also opt for silver, platinum, or other precious metals when you invest in mining stocks, so you might want to diversify your portfolio.

This beginner’s guide to mining stocks will tell you all you need to know.

What Option Is Right For You?

We can’t answer that, but as we suggested above, you might want to diversify your portfolio and go for all three.

Commit to further research online, and speak to a financial planner for expert investment advice. 

4 Key Elements for People That Want a Career Change

A career change is something that requires an incredible amount of work and patience.

It’s something that people find is impossible once they’ve become reliant on their main source of income and are invested in their current place of employment.

However, with the right circumstances and mindset, it’s relatively easy to make a complete change to your life.

In this post, we’ll be taking a look at four key elements for people that want a career change.

  1. Inspiration

Staying inspired can prove to be a challenge, especially when it comes to making a big career switch.

Fortunately, it’s something that you can acquire relatively easily. One of the best ways to seek inspiration is to actually get out there and network.

This could be attending more parties with friends to meet new people, it can mean watching new YouTube channels to learn more about the world, or it could mean getting on social media and looking for sources of inspiration.

Staying motivated is a challenge, but when you’re surrounded by positive people, you’ll find that it can be much easier to shoot for success.

  1. Time

Time is an essential component for those that want a career change.

Many people stop here and think that they’ve already used up a lot of their time on another career path.

They believe they’ve invested too much into their current job and so they don’t want to make the switch.

Fortunately, time is a relative element. In reality, it doesn’t matter if you’ve already spent years of your life studying for and achieving a career that you want to switch from.

Time is all about making time for your new life. It’s about freeing up time by avoiding distractions and optimizing the things you do in your life. Every minute we idle is another minute wasted.

If you want to make a huge change to your life, you need to find ways to cut out time-wasting activities and focus on things that can improve you.

  1. Education

There are a number of different ways that you can study while you work.

For instance, online study through universities such KUO can teach you anything from engineering management to business administration while you work your regular job.

Being able to study in your own time is a huge benefit since it can teach you essential skills while you make money that goes towards paying for your course and an eventual switch to a new career path.

  1. Support

Lastly, switching your career isn’t something that you can achieve alone once you’ve heavily invested in something.

It requires support from friends and family members, especially as a source of inspiration and motivation to keep you going.

This is especially true for a career path that isn’t easily defined, such as entrepreneurship or freelancing.

Career changes can involve the people around you, such as your family who depend on your income for their wellbeing.

By having support from these important people in your life, you’ll find it much easier to make the change you want to achieve.

Budgeting Your Money After A Financial Change

Budgets are not static things – they need to be adapted and changed to reflect your income if they are going to remain effective.

The money we make and the money we have can change at the drop of a hat.

You could have been injured in an accident, and an experienced personal injury attorney like Steven Halperin of Halperin & Halperin, P.C, could win you tens of thousands of dollars in a personal injury claim.

You could be made redundant from your job and receive a large payout, or you could win a significant amount of money on the lottery.

Even small changes in income need to be accounted for in your budget.

Pay rises, small winnings, and inheritance can all make a big difference to your financial status and, it is essential that this is reflected in your financial budget. 

It’s also important to realize that your budget needs to be changed if you find yourself with less money coming in that you had before.

Whether you’ve made a significant purchase and have used up all of your savings, have lost your job with no redundancy pay, or have found yourself in a situation where you are spending above your means. 

When To Reassess Our Budget

Changes in your income and spending won’t always be dramatic and, therefore, they can creep up on you over time.

This is why it is essential to reassess your budget regularly, even if it appears as though there has not been any change in your financial situation.

As a general rule, it is wise to reassess your budget every quarter (once every three months), as this will allow you to spot any adjustments that need to be made before they cause any significant damage. 

Besides regular quarterly budget checks, it is also essential that you reassess your budget whenever you notice that your financial situation has changed.

For better or for worse, a rise or fall in your income will need to be allocated within your budget to ensure that you can afford your outgoings and are making the most out of the money that you have. 

You should reassess your budget if: 

  • You get a pay rise
  • You receive a significant sum of money 
  • You are made redundant 
  • You receive a legal payout 
  • You inherit money 
  • You win money 
  • You spend your savings
  • You lose money 
  • Or there is any other change in your financial situation. 

budgeting after financial change

Budgeting using the Balanced Money Formula 

The Balanced Money Formula is a simple way to budget your money, splitting your expenses into three principal categories, Needs, Wants, and Savings. 

Needs are things that you must spend money on, such as your rent or mortgage, food, transport to work, and loan repayments, etc. 

Wants are the things that you don’t need but would like to have; this includes things like takeout food, new unnecessary clothes, vacations, and entertainment subscriptions. 

Savings are self-explanatory and could be a general savings account, an investment, or money towards your retirement. 

The basic concept of the Balanced Money Formula is that you should spend 50% of your income on your Needs, roughly 30% on your Wants, and the remaining 20% of your income should be put into your Savings.

A very simple way of budgeting, the Balanced Money Formula, is extremely effective and can be easily adjusted whenever your income changes. 

It’s crucial to realize that these percentages are a guide, and if it turns out that you have far fewer needs than 50% of your income, then the excess money can be split between your Wants and Savings.

Similarly, if your Needs account for more than 50% of your income, then decrease the amount of money you spend on Wants and try to keep your Savings at the same value unless necessary. 

Budgeting Your Money After A Salary Change

A salary change, whether up or down, will shift the balance of your income and expenses, and as a long-term change in income, it is important to factor this difference into your budget.

Start by working out exactly how much more, or less, you will be receiving per paycheck (after-tax) so that you know the figure that you will be working with.

Whatever number you come out with should then be split into your Balanced Money Ratio.

If it turns out that you have more money than you need to be allocated to your Needs and Wants categories, then this should be diverted to your savings.

If on the other hand, your income has decreased and you can no longer cover your Needs with your new income, then money will need to be diverted from your wants, and changes to your luxury expenditure will need to be made. 

Budgeting Your Money After A Significant Payout 

Whether you’ve just won a legal battle, have received a large redundancy payout, have won money, or have inherited a large sum from a family member, it’s important to factor these single payouts into your budget.

Before you do anything with your payout, it’s important to make sure that you have paid and covered any taxes or fees that need to be settled so that you know exactly what you have left to play with. 

If you have found yourself sitting on a very sizable amount of money, then the Balanced Money Formula, may no longer suit your needs.

In this situation, it is worth investing in the services of a financial advisor who can help you make the most out of your payout. 

If, on the other hand, the payout you have received is relatively small, though still significant, it can usually be split using your Balanced Money Formula.

If you are still taking a salary, then this should still cover your Needs, leaving the full payout amount to be split between your Wants and your Savings.

If you are no longer working, or are going to be living off of the payout amount for some time, then it is essential to split it into your Needs and Wants categories so that your expenses are covered before putting anything that remains into your savings.

Budgeting your money after making a significant purchase 

Whether you have just spent your savings on a deposit for a house, have finally purchased the car of your dreams, or have booked a two week luxury holiday, it is always important to reassess your budget after making a significant purchase – especially if the money has been taken from your savings or it involves a new regular expense. 

If you have used your savings

Savings not only allow you to buy expensive things, but they are also a very important buffer should you get into financial difficulty.

If you have spent your savings, then you no longer have this safety net to fall back on and could find yourself in debt.

When re-assessing your budget after using your savings, your focus should be re-building this buffer zone as soon as possible by diverting some of your expendable income from your Wants, into your savings. 

If your purchase involves a new monthly expense

If your purchase involves a new monthly expense such as mortgage repayments, direct debits, or otherwise, then you will need to ensure that you add this expense to the Needs category of your budget.

If your income status has not changed, then updating the Needs category of your budget will usually mean allocating funds that previously would have been split between your Wants and Savings.

If you are also trying to rebuild your savings, then you may need to cut back significantly on your Wants in order to afford the additional Need as well as the extra payment into your savings account. 

Other budgeting methods to try

Throughout this article, we have referenced the Balanced Money Formula as it is one of the simplest forms of budgeting and is easy to explain within these scenarios.

However, there are a number of other budgeting methods to try if the Balanced Money Formula does not work for you.

Some of the other budgeting methods that you may want to try to incorporate alongside or instead of the Balanced Money Method are:

 

The cash-only money method

Pay for things using cash rather than a credit card to help curb spending by allowing your brain to make the connection between each transaction and the exchange of money. 

The zero-based budgeting method 

Start from scratch each month to create a budget that reflects the expenses of each month.

And the priority-based budgeting method

Make a list of your expenses in order of priority and importance to help you see what is truly essential and what is an unnecessary luxury.

Use your money to pay for the highest priority items first, and if your budget is used up then do not purchase those that are left.

So there you have it – a quick guide to budgeting your money after a financial change.

Do you use the Balanced Money Formula to keep track of your spending?

Let us know your preferred budgeting method in the comments.