Budget

Budgeting and cash flow are topics often broached in the business arena. But these concepts are also useful when it comes to managing your personal finances. But why are they regarded as two separate things? How do they differ from one another? Let’s take a look at Cash Flow first.

Cash flow means precisely what it says – the flow of your cash. Just like the moon and the tides it waxes and wanes – changes from high tide to low tide dependent on at which point in time you look at it.

High tide is when you have plenty of money- usually, once your wages have been paid. Then there are all of the outgoing cash transactions, each of which decreases the amount of money you have left, as high tide becomes low tide.

A cash flow record is an early warning system

Compile your cash flow record in strict chronological sequence. By doing this and including all money transactions both in and out and extending the record forward by forecasting what will happen in the future, you will get a reasonably accurate picture of your personal cash flow. You can then use it to spot any problems that might be looming up in the future.

A budget is similar to cash flow in one way. It too should include all of your outgoing cash commitments. It doesn’t necessarily have to show your earning income, but it must show all of your forecast outgoings.

The importance of capturing all of your planned expenditure

The job of a personal budget is to capture and add up all of your expenditure. It is, of course, essential to include everything you expect to have to shell out for.

It should include your grocery shopping, cost of fuel for your car if you have one, and all bills such as electricity, gas, water, and rent, etc. If you have any loan repayments including any mortgage, these too must be included. In other words – your total cost of living.

Some people also include a contingency for unexpected costs. Things like car repairs or having to buy a new pair of shoes for example.

Once you’ve compiled your finite list, you will hopefully have captured all of your outgoings. It doesn’t really matter too much about keeping everything in chronological order because that is the job of a cash flow record.

Completing your personal budget plan

Your budget is not yet complete, however. Yes, you’ve hopefully logged all your predicted outgoings going forward. But the reason for creating a budget in the first place is to help you to manage your money; not just see how much you are spending.

The next stage is to establish what you are spending that money on with a view to controlling your money supply.

Once you’ve stripped out any non-essential expenditure, then you have your budget. You now need to compare it to your earnings to ensure you are not spending more many that you have coming in. You may want to go one step further and trim your budget a little more to allow you to set some money aside as savings regularly.

Budget plans and cash flow logs are complimentary.

The big difference between a budget plan and a cash flow record should now be obvious. A budget is a spending plan. A cash flow log is a record of actual and forecast expenditure.

However, in managing your money supply, both are complementary to each other. Click here If you would like some additional tips and guidance from Wonga on how to get started with using these tools.

Remember that your budget is all about ensuring you are living within your means. Your cash flow is a check that you are indeed doing so and more importantly, that you will continue to do so as long as you stick within your budget.

A cash flow log is an ongoing project. But so too should your budget be. Things change, and your budget needs to reflect any changes. Only when it does so will you stand a chance of controlling your money supply properly.

If you would like further help, why not take a look at the four best South African apps that are being used by many people to help them to get to grips with managing their money?

To read more on topics like this, check out the budget category

Most of us take for granted that we will always have a solid roof over our heads. It’s an essential part of feeling secure and protected from the elements. And, unless you’ve lived through a major roofing issue, you might not realize just how devastating it can be when your roof starts to fall apart.

Staying aware of the condition of your roof is a significant activity and should not be taken lightly. If anything seems amiss, you will need to take action immediately. Which begs the question, ‘How do I know when I need a new roof?’

Here’s a list of some of the tell-tale signs that your roof is in need of repairs. If you read it carefully, you’ll be prepared to stop a roofing disaster before it ever even starts.

1) Curled Shingles

Shingles curl in two ways and both are indicators of a failed roof that may begin leaking soon:

Clawing: This is where the edges of the shingles remain flat while the middle rises upwards.

Cupping: This is when the shingle edges curls upward. This exposes the boards underneath to the elements, which means it’s only a matter of time before they start to become vulnerable and deteriorate.

2) Missing Shingles

It’s fairly common to have a few missing shingles and this shouldn’t worry you since you can easily replace them. However, when you are consistently losing shingles or you notice that you can’t get a shingle that matches your old ones, this can be a sign that you need a new roof.

At the very least, you’ll want to have a roofing expert come by and take a look – make sure nothing more substantial is wrong. They will usually do this for free and give you an estimate of what repairs would cost if they find anything wrong.

3) Cracked Shingles

Shingles crack due to damage from strong winds. It’s normal for shingles to crack and you can replace them if not too many have been damaged – especially if the cracks are concentrated at one point.

However, if you notice that the cracks are spread all over the roof, then you should start planning on how to replace the whole roof. Once damages progresses to that point, it’s been going on too long and it is very unlikely that you’ll be able to salvage the roof.

4) Light or Water Penetrating the Roof

This should be an obvious one. If you can see sunlight through any part of your ceiling except a sun roof, something is seriously wrong with your roof. If the sunlight can get through, you can imagine what else can.

Similarly, if you get water stains on your ceiling or coming down the walls, then this is a sign of an active leak. The extent of the damage will determine if you will repair or replace the roof. You can repair small leaks but larger ones are a sign or aging and structural damage and can be very hard to fix.

5) Sagging Roof

A sagging roof is a sign that you need a roof replacement immediately. This is very dangerous and you cannot wait to take action.

It may indicate a problem with the foundation support or attic decking. It is likely a structural problems so you don’t want to take chances. Any time you notice a depression in your roof, call a professional immediately.

6) Missing Granules

You don’t have to get on to the roof to know that you need a new roof. Granules on the ground or in the gutters indicate exposed shingles. Granules shield shingle fibers so, if you notice that they are missing, this means that rain might be passing on to your roof deck.

Note that granules change their color with time due to weathering. That is a sign of wear but not a dire situation.

Conclusion

If you notice any of the signs mentioned above, then you should start preparing for a roof replacement or at least have a professional come take a look.

Replacing the roof is a complex process so we caution you against trying to do it yourself unless you have some kind of expert training and experience. It may seem easy but, once you get up there, you’ll quickly realize that it requires skills and experience.

It also requires extensive planning and should be done quickly. Your contractor will know how to plan for weather, materials and be better equipped to deal with any issues, should they arise. Don’t worry too much about it though. As long as you’ve hired the right roofing contractor (like Cross Country Construction in Rockford, IL), you’re going to be fine. Just don’t take too long to act!

To read more on topics like this, check out the budget category.

If you’re on the hunt for fuss-free foolproof money saving tips, which will help your bank balance grow, simply continue reading.

Money saving tips which will help your bank balance grow:

1. Go through each transaction which you’ve made at the end of each week

At the end of each week, print out your online banking statements in order to track every transaction which you’ve made. As you may be surprised out how much money you spend at certain stores such as your favorite coffee shop or cafe and may be inspired to cut down on the amount of money which you spend at stores where you often waste a lot of your disposable income.

2. Make sure that you’ve signed up to the right smartphone provider

Not all mobile phone plans are created equally so it’s a smart idea to shop around for a smartphone plan which best suits your monthly usage habits. As an example, if you hardly use your smartphone’s data, there is little point paying for an expensive smartphone plan which boasts gigs of data, which you’re unlikely to use.

3. Never pay full item for an item

If one of your goals is to save money, it’s well worth waiting until items which you are interested in purchasing go on sale, rather than paying full price for an item. As in today’s fast-paced world where stock is continuously moved, most items will be discounted within a month.

4. Invite your friends over for a meal, instead of organizing to catch up at a pricey cafe or restaurant

If you don’t want to spend upwards of $25 every time you socialize with your friends, it’s well worth inviting a few of your friends over to your house to enjoy a casual barbecue or a potluck dinner, instead of arranging to meet at an overpriced cafe or restaurant. If you’re lucky your friends may return the favor and may invite you over to their house to share a meal.

5. Shop for preloved items for your kids

If you’re a parent, chances are that you regularly spend hundreds of dollars on purchasing clothes, toys and sports equipment for your kids. If you’d like to decrease the amount of money which you spend on your kids each month, whilst still providing them with the items which they need or want, it’s well worth visiting yard sales and thrift stores in order to find good quality used items. Examples of which may include school uniforms, bicycles, and sneakers.

It’s also well worth purchasing preloved clothes for your kids, which are in great condition as children grow fast, so there’s no point spending hundreds of dollars on brand new clothes for your kids, which they are likely to outgrow in a couple of months.

6. Don’t throw items out, when they can be repaired

While you may be tempted to throw an item out, such as a pair of jeans when it has a small hole, it’s well worth learning how to fix or mend items which can be repaired, instead of hastily throwing them out and purchasing a replacement.

So what are you waiting for? If you want to see your bank balance grow it’s well worth trying out some of the money saving tips listed above.