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This is a guest post from Mr Credit Card of www.askmrcreditcard.com. Mr Credit Card is going to talk about how he uses credit cards to help in his budgeting efforts, in addition to being a convenience tool. If you are looking for a credit card, please check out his best credit cards list section

Firstly, I would like to thank budget pulse for allowing me the opportunity to guest post here. Today, I am going to talk about how to I use credit cards as a part of my budgeting tool. But first, here is a background. I charge everything to my credit card. There is a reason for that. I pay my bills in full every month (which everyone should) and I use it to earn rewards (which I’ll explain in more detail later). So how does my credit card help in my budgeting. Here is how I use it.

Expenditure Breakdown via Statement Summary – I get statement summaries from my credit card issuer once a year. It breaks down my expenditure into various categories. Because I charge everything to my card (except my mortgage), I have an accurate breakdown of my expenses and I use that as a basis for budgeting and adjusting our expenses.

Pay on time via autopay – I am extremely bad at paying my bills. I simply hate going through all the bills and writing my checks every month. So what I do is to use automatic payment with the credit cards I have. Every month at a set date, money is taken out of my bank account. I have never had any issue with this arrangement. There are tons of advantages of doing things this way. Firstly, you’ll always pay your bills on time. That is so important improving your credit score. Secondly, your credit card issuers can never accuse of being late if there was a mess up from their end.

Budgeting for my vacation – Believe it or not, but I’ve taken more vacations than not if not for my credit cards. For about the first ten years of my working life, I traveled quite a lot on my job. Because I was given a business credit card from my company, I managed to rack up lots of points (btw – I was given the Amex corporate charge card). These points were invaluable to me because they did not expire and I was able to get many free airline tickets simply because I was using my company’s credit card. It was not even my expenses. But what I did was that I also got the same card for my personal use and earned even more points. After a couple of years, I was able to figure out roughly how much I spent on my company’s business credit card and my personal credit card. With that data, I was able to plan and budget for my annual vacation. Very often, the cost is much lower because of those reward points I have earned.

Most credit cards also provide car rental collision insurance if you charge your card for the rental. This has also saved me a few hundred dollars every year on my vacation where I had to rent a car.

Saving Money – After I stopped traveling for work and switched companies, I realize that I would be better off earning cash rebates rather than reward points (since I would not be earning as much points). Hence, I got myself a credit card with cash back rewards. On average, I have been earning about 2.3% in cash rebates every year. This works out to be about $1000 every year. Once I got through the first year using the card I had and getting a feel for the rebates I earned, I could once again factor in the savings that I would get.

For folks who have debt, doing a credit card balance transfer will help in your budgeting as well when it comes to interest expense.

Ending Thoughts – Some folks got into massive credit card debt and hate to use them. For me, they have been an invaluable tool for budgeting for my vacation and actually saving money with them. All this only happens when you pay off your bills in full every month. I hope these little tips were helpful to you.

By Heaven Stubblefield

When I first began working as a freelance writer I thought this income was going to be used for Christmas.  However, within my household, we had some changes take place and needed to use this income for more tangible things.  It is possible to budget on a freelancer’s salary.  All you need is some careful planning and a strict way of thinking.

Before you begin working freelance, it is important to have a cushion of money in your savings account.  If you don’t, I strongly urge against leaving work full time for this type of income.  If, on the other hand, you were not working at all and this money is simply extra, enjoy!  You have earned this type of lifestyle after some careful planning and successful saving.  Here are some tips that make my freelance dollar go further.

Needs vs. Wants

If you are blessed to have a freelancer salary as extra income that is not needed to make your household function successfully, then this category doesn’t apply to you.  For me, it became a necessity when some medical bills came rolling in.  At first, I thought I needed name brand food and a cupboard of snacks for unexpected guests.  Now, when I go grocery shopping, I buy what I need at a discount grocery store and buy only what I need.  Shopping this way has helped not only trim the budget but also my waistline.  Keeping soda in the fridge has become a thing of the past.  Now I drink water, milk and juice and if I need a snack, I stick to a protein which keeps me fuller.

Even though I don’t like to shop for clothes, there has been a need to purchase some pieces of clothing.  While a freelancer’s lifestyle as a writer lends itself to a wardrobe of sweats and t-shirts, I have found opportunities to dress a little nicer.  For me, consignment shops and garage sales are the places for me.  Since I hate that I have to pay taxes on my hard-earned income, I prefer garage sales, as I don’t spend more than what is allowed by law to keep my closet filled with the necessities.

Finally, as mentioned, being strict with yourself is necessary in order to make your budget work.  I remember hearing stories on television of medical doctors during their residency living off of ramen noodles and peanut butter and jelly sandwiches.  With this new freedom comes the responsibility of staying true to yourself.  I know that during my morning walks in the park with my daughter that I cannot stop at Starbucks every morning for something yummy.  The gift I receive from being a freelance writer is getting to spend time with my daughter and be a mom, wife, then writer.  So making sacrifices like that is totally worth it.  Besides, I can do whatever I want during the day.  My fortunately, I know my budget is not as free as me.

Uncertainty about the current and future economy has pushed many Americans to start saving more and paying off more of their debt. Recent studies in 2008 and 2009 have indicated that as Americans are feeling less secure about their financial stability, they have begun to change their spending behavior. As confidence falls, many have chosen to exercise prudence, paying down debt and setting aside some of their money in savings accounts and money market funds rather than spending it all.

As consumer’s personal investment losses mount, the amount of money put aside in short-term savings rose from consistently low averages and Americans also increased their contributions to their personal retirement accounts. In addition, the amount of money Americans are using to pay down short-term debt has increased as people tighten their belts, reduce spending, and warily watch the economy.

Here at BudgetPulse, we say, “It’s about time!”

It’s about time that Americans start saving more. It’s about time that everyone has a budget plan too. A solid budget can help you save more – quickly and easily. With a solid financial plan in place, you  can worry less about the short-term dips in the economy because you’ll have some of the time-honored essentials in place, including:

1 An emergency fund - start with a little bit and keep growing it steadily until you have at least 3 months’ worth of expenses saved – some economists recommend 6-9 months’ worth, so get started!

2 Reduced debt – by paying down the debt with the highest interest rate, you gain speed in paying down debt. Once that one is paid off, move that payment amount to the next highest interest rate debt, and so on. Reduced overall debt will give you great peace of mind in these troubled times … and it works great when the economy is rockin’ too!

3 A controlled spending plan – by outlining a budget and sticking to it, you know what you can afford and you know what you need to keep yourself and your family safe.

4 A savings plan for future items – whether it’s a vacation or going back to college, you can’t get anywhere without saving for it, so get started right now.

Of course, it’s not just Americans who need to make changes in their financial habits – we all do. But we thought it was good to see that the turn around has started and we hope that all Americans take heart and start applying some good financial common sense to their spending and savings habits.

Two of the most important things you must do  after college are:

•  Conduct a “State of the Union” for your finances, sign-up (sic) for an online money management system”
•  Develop sound saving habits from the start”

… and we couldn’t agree more.

•l  Set up an online money management system

Treating your finances seriously is crucial to your ability to create a sound financial future for yourself, and for your family later. One of the best – and easiest! – ways to do this is to sign up for an online money management system that gives you an entire view of your finances.

Sound a little obsessive-compulsive? Well, perhaps it is, but you won’t find a financially successful individual who hasn’t done something similar and why not use the free Internet tools that are available to help you with this chore?

•l  Develop good savings habits

Starting with good savings habits right from the start is important. So, what do you need to save for right now? Well, here are a few you probably can’t get away from:

- You need an emergency fund right now. Otherwise, how will you pay those bills on time if you lose your job?

- If your are employed, you need to begin retirement planning right now. You can’t count on social security and there are no more gold watches with a comfy retirement after 30 years.

- If you plan to purchase anything of any value in the future, you need to start saving right now. Do you really want to stay in that rat-trap you call an apartment forever?

So, let’s break these requirements down into bite-sized bits:

1 Setting up an emergency fund, even if you put only a little into it each month, can be a great way to ensure you will be able to pay your bills in the event a problem occurs. Saving while paying down debt is the only way to ensure you’ll be able to pay for the unexpected expenses that will happen as you continue to pay down your debt.

2 Retirement planning can never begin too early and if you are lucky enough to be working for a company that contributes a matching percentage to your retirement account, you are throwing away their good dollars if you don’t match it. So start investing at least the match and see “In the future …” below for hints to improve those dollars.

3 Saving for the future has to start right now. No, it doesn’t have to be a lot, but for every debt you pay off, put a little more into your future savings funds. For every expense you clear off your monthly list, put a little more into your future savings. When it comes time to put money down on a car, or a condo, or an engagement ring, you’ll be prepared.

• l In the future …

As you get raises, pay yourself first – increase your 401(k) contributions by just 1% with each raise, and you will be contributing the maximum in only a few years. Increase your savings percentage with each raise as well. Don’t use your raises only as a way to ‘get out of debt faster’; use some of that money to improve your financial growth too.

You may think that having a budget is simply checking your bank statement to see where your hard earned money is going, but that is far from the whole process.  There are a lot of components involved in making a proper budget, but luckily, just looking at the bank statement is the first step.  In order to build a realistic budget, you need to chart money that is coming in and where it is going.  This enables you to realize your spending habits and trim spending.  An online budgeting software can give you a visual picture of your spending so you can do just that sort of tracking. Graphs are much easier to read than statements, and instead of seeing a page of numbers like on a bank statement, you can see what percentages of your income are being used toward both fixed and variable bills.  By tracking your money, you can begin to build a realistic budget. 

Tracking expenses may seem tedious, but all you need to do is look at your bank statement.  For those of you who don’t rely on your debit card 100% of the time, software can help you track your spending every day.  While many think checking their email is an important thing to do daily, charting your spending daily is by far more important, and it’s a habit that will set you up for financial success. 

While you’re charting your spending, it is important to acknowledge those fixed bills that are constant.  These can include a car payment, rent/mortgage, phone bills, and other utilities.  It is always better to document these items with the bill in hand. If you just estimate them, you may come up short before your next payday.  Rather than give yourself another thing to stress about, it is a good idea to overestimate these amounts for a little extra cushion.  For example, if your rent or mortgage payment is $879.00 U.S. dollars, round up and track your expense as $900.00.  This way, your bank account should never reach $0.00. 

Another important aspect of creating a realistic budget is to examine whether you are living a realistic lifestyle.  You might notice after a bit of analysis that you are living extremely out of your means.  Instead of simply spending money, you have to acknowledge where it needs to be spent.  For some people, that means eating out less and not going over minutes on their cell phone. 

Especially if you have credit card debt, an advantage to having a budget is to see that your hard work and planning is helping make you financially free.  For some, not having a budget is like sentencing yourself to prison without parole.  By living within your mean and adjust spending habits, your budget will empower you to live life to the fullest. 

What are some tips that help you budget?

Having a budget is the first step toward financial freedom.  Creating one will enable you to track your spending, save up for big purchases, control your credit card expenses, and gain financial wealth.  While it may seem like something that everyone does, it’s amazing how many people work hard and do not have a budget.

Here are 10 Benefits of budgeting…

10.  Smart Spending: Having a budget will help make it easier to shop.  While out shopping, you will always be tempted, but a budget helps you realize that you are stronger than an advertisement.

9.  Treat Yourself: A budget that is adhered to will lead to rewards.  Whether you are budgeting to save for a vacation or for a new cell phone, if you stay on your budget, you will see the benefits.

8. Stress relief: If you stay on budget, opening the mail will not become a stress induced activity.

7. Build wealth: Developing a budget using an online budgeting software can help you save money, not just spend it.  You are able to see how each month’s budget helps make you wealthy.

6. Build Credit: A budget that is well written will have you pay more than the minimum on your credit card, which means a higher score on your credit report. You end up paying less in the long run too, and you can save up a lot of extra money.

5. Buying power: You may not want to live in a mansion or drive a convertible, but even if all you want is a very small item, to have the buying power to purchase your wants is one more reason to stay on budget.

4. Helps with future purchases: Save for bigger purchases for the future like a vacation, car, or for a house.

3. Mood Booster: With a budget, you just feel good about yourself.  You are in charge of your money and you will feel empowered when you avoid temptation and keep your budget in mind.

2. No surprises: When you look at your bank statement, you will see where your money is going and won’t need to worry about your account becoming empty.

1. It’s fun! Creating a budget and taking care of your finances can to ensure that you are spending wisely can be fun.

What are some other benefits to having a budget?

• Read the Fine Print for all financial products before signing up!
• Don’t underestimate the Savings of Online Coupons! (Great examples – Coupons.com or Valpak.com)
• Compare Grocery Specials before shopping! Usually you get them in the mail from different stores in the middle of the week. By adjusting your menu you can save a lot!
• Get rid of excess junk around your house! If you haven’t thought about it in the past year or already have a spare, most likely you don’t need it. Options: Sell it, Pawn it, Donate it, Recycle it, or simply trash it.

This is a guest post by Bernard from www.Credit2Debit.com where you can learn more about his budgeting tips.

Be smart on your vacation or business trip and you won’t have to budget for a loss. Here are 7 tips that came to mind for being smart & safe while traveling. As I wrap up my trip in China these tips definitely come in handy!

1) Once you arrive at your vacation or business trip destination exchange your currency. Usually the airport will be the best place. Many times hotels or off site currency exchanges will have much higher exchange rates! This may seem small but doing it once in a larger sum can save you big money.   Then, once you exchange, don’t carry it all with you. Use your hotel safe or other safety options. Don’t put all your eggs in one basket

2) Depending on your destination it may be smart to carry a travel belt. I always feel like a grandpa wearing one (although I did when I was in Kenya) so I usually just move my wallet from my back to my front pocket. It is also a good idea to keep your passport in a very safe (un-theivable) spot.

3) Use small bills when possible. Flashing around your 500 unit bills will make you a sure target. When getting change keep all bills in site otherwise you may get suckered into the, “you gave me a smaller bill”, scam. However, pretending to have only larger bills can help with certain negotiations. Just be aware of your surroundings at all times!

4) Carry only 1 credit card if you can. There is no reason to overexpose yourself. Also, before you leave it’s a good idea to leave a copy of that credit card (and a copy of your passport) with a family member. This way in worse case scenarios a copy can be faxed or email to you.

5) When you pay with your credit card make sure to check 3 things…
a) the amount on the receipt is in fact the correct amount.
b) it is in fact your card (the same that you paid with).
c) you always get a copy of your receipt…even if you don’t normally, this is important when traveling.

6) Be very aware of your surroundings. Ever seen the Bourne Identity? The old fashioned bump and run pick-pocket’er is still very prevalent so check your pockets often and watch out for strangers in close quarters.

7) Be careful what you pack away. If you put valuable in your luggage you’ll have an excruciatingly difficult time getting them back when/if your luggage is lost. Your vacation could turn to a net loss if you lose the wrong piece!