Melcar Group

Budget Guru

What is a Miscellaneous expense?

What truly is a miscellaneous cost in terms of creating a budget? There really is no right or wrong answer; it is more what works for you. It is important to build your budget so that there is structure and definite categories to ensure you stick to the plan. Being a budget guru, it is my passion to create and maintain complex budgets that allow users the freedom of simply recording their expenses in the appropriate column while sustaining a comfortable life.

Generally, a miscellaneous cost is something that is not a repetitive expense. For example, food should never be found in the misc category; rather it should be an item like going to the movies. Miscellaneous is meant to provide a little bit of extra money for your budget period if something comes up during that time. Some examples of items that should be included in the misc category are as follows:

1. Clothing
2. Makeup
3. Personal hygiene products
4. Lottery tickets
5. Coffee/Beverages
6. Gifts (Birthday, anniversary, graduation, etc.)
7. School supplies
8. Salon/Barber expenses
9. Restaurants/Café’s

Buy watching your miscellaneous expenses, you can really slim down your spending and create the opportunity to save more money. This is not to say that you can’t do anything fun or rewarding for yourself, you just have to plan and budget for these events.

March 2, 2009 Posted by | Money Basics | Leave a comment

Foundation of Money

Money–Something we can’t live without, yet it seems we can’t operate even if we have money. Why? As a society we have taken the basic principle known as “Money earned – Money spent = Balanced Budget or Debt”.

When we take a closer look at our financial situation, it may seem overwhelming, so many people would rather not even open the book in hopes to avoid a scary situation. In actual fact, letting the problem build over time, will only create more financial stress, which can begin to effect every aspect of one’s life. Sure one can get on the right path again simply by paying off their minimal accrued debt, but if you don’t analyze your lifestyle you will end up in the same situation 5 years down the line. The problem is, as consumers, we feel that we are entitled to buy whatever we want, while ignoring the price tag until the monthly statments come in. We have become a society that purchases “things” even if we don’t have the money. It is only common sense that we would end up in a financial meltdown, both as a nation and as individuals.

The solutions may be easier than first anticipated, simply spend what we have and eliminate all credit cards for mass purchasing. This enables us to really understand what we can “afford” and simply what we can’t. Some items we just can’t afford, for example, personally I can not afford to purchase a 200 dollar pair of earrings. When I say I can’t afford to, it means that I really don’t have 200 dollars of disposable money for earrings, and I would rather save the money and get an average pair of earrings that will suit myself and my budget.

One of the most essential aspects of my personal finances, was to create a very structured budget and truly live by it. The outcome for myself has been very positive while I continue to learn more about saving money!

February 17, 2009 Posted by | Money Basics | Leave a comment