In the Kemp
household, whenever we have a lively dinner table conversation, inevitably, my
work as a financial planner comes into play. Recently, my son asked me about
these red mechanisms with buttons he’s been observing at his job at the local
grocery store. After some discussion, we determined that it was a Handy Adder -
a true blast from the past.
After that,
everyone was very interested in what the Handy Adder is and why my son was
seeing people use it. The Handy Adder is a small handheld adding
machine. I explained that it wasn't long ago that people used cash or
personal checks at the grocery store instead of credit cards. They had to
make sure they had enough cash in their wallet or money in their checking
account to cover the bill, so every dollar and cent mattered. The Handy Adder is an effective
way to track each item you plan on purchasing to keep your budget under control.
This prompted a
series of questions from my son and my other two children. We spent time
discussing that not long ago most people lived within a budget. People watched what they
spent and if they ran out of money before month’s end, they had to make cuts
and eat a lot of potato soup or spaghetti without meat sauce. We talked
about what it means to live frugally and below our means.
My son further
mentioned that he only sees a handful of frugal customers. Most people
don't notice what they're spending and just put it on a credit card. It’s
not necessarily using a Handy
Adder that matters, but living
within your means and having a budget. A Handy
Adder is a great way to track costs, but there are many other ways that might
be just as effective; it’s a matter of personal preference and personal
financial discipline.
Creating a budget
in the modern world is not as difficult as many think it is, and you can do it
all without a Handy Adder! Just look at your monthly income, subtract your
general monthly costs such as rent, utilities, transportation bills and
savings, then split the remainder of it into the number of days in that month. Keep-your-cash.com suggests you “look seriously at how much you need to spend to
cover the basic dietary needs and so on, with enough daily perks of
satisfaction to keep you motivated. This will be your daily personal budget.
Then take the remaining amount per day and multiply it by the number of days to
see your potential savings for that month. This should leave a decent amount to
use for something really worthwhile when the opportunity arises.” Too many people neglect these
simple steps to creating a daily budget, which can lead to debt in the future.
One very modern way of developing an ongoing monthly and yearly budget
is by using software programs and apps. You Need a Budget (YNAB) is probably the best
budgeting software we’ve seen. It has features that allow you to track and set
aside dollars. It even has an ebook on budgeting you can
download. You can also use Mvelopes software or Mint.com, both of which are free.
To make a paradigm shift in your financial situation as you plan for
your retirement, beginning to practice good budgeting habits is a must. Having
money will not solve all of life’s problems, but being financially secure can
give your family and loved ones peace of mind.
All information herein has been
prepared solely for informational purposes, and it is not an offer to buy or
sell, or a solicitation of an offer to buy or sell any security or instrument
or to participate in any particular trading strategy.
Securities and investment advisory
services offered through National Planning Corporation (NPC), NPC of
America in FL & NY, Member FINRA/SIPC, and a Registered Investment Adviser. Registered
Representatives of NPC may transact securities business in a particular state
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PRIVACY POLICY. NPC #
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