An insurance contract has always triggered ideas of paying out a monthly premium and signing a multitude of documents; insurance is not only the legal responsibility. More importantly, insurance acts as a life vest when one is hit by an unexpected storm that threatens to drown all their plans. An insurance policy is more than …
One of the purposes of having insurance is to have peace of mind. Whether it is your home, health, car, or business, being insured allows you to be prepared for the worst whenever it comes. But like any positive thing, it does come with its own set of abuses. This is where insurance frauds come …
The practice of paying yourself first takes a very different approach to managing personal finances. It focuses on your savings and investments as necessary expenses rather than something done at the end. Considering paying yourself first means that before spending any other money that is for non-essential reasons, you put aside a portion of your …
Incremental budgeting is a method that employs making small changes to a last year’s budget format to come up with a new budget. It is the easiest way to budget and therefore the most common one, particularly since it requires less time and resources compared to other budgeting. In other words, or to put it, …
This is the technique in which more cash is employed in the transactions instead of credit and debit cards. In my opinion, cash-based budgeting, as this technique is known, will become very popular in the future. Many people attempt to be in control of their finances and aim for better financial behavior. This consists of …
Reverse budgeting is unlike the traditional budgeting techniques in that it combines savings and expense management in that order. Instead of assigning limits for various expenditures and trying to stay within them, reverse budgeting starts by determining how much you need to earn, and then the rest of your income goes to expenses. The objective …
Budgeting on a percentage basis may be killing two birds with one stone because it is simple to implement an effective form of budgeting. Rather than allocating certain dollar figures for every one of the expense categories, this approach focuses on the saving target, other expense goals, and allocating expenditures as only a percentage of …
Retirement planning—it may appear to be the sort of thing that can be delayed or postponed for a later date. Not quite so! To be fair, it is also true that if planning is done in advance, the golden years can easily be enjoyable. For most people, after putting in decades worth of work, the …
Taxes are a double-edged sword, isn’t it? However, there’s no reason to worry about it with proper tax planning, as it is one of the best financial strategies. In fact, having a plan in place allows you to save thousands, relieves a lot of stress, and helps you take control of your hard-earned riches. Whether …
Line-item budgeting refers to a controlled expenditure method of allocation to natural resources in real-time. This form of budgeting is popular among individuals, businesses, and even government. This technique comprises of income and expenditure vertical disaggregation or classification into specific categories known as ‘line items’ for easier control and analysis. This method clearly shows all …