By MSN Money staff

Budgeting isn’t a punishment for not being born wealthy.

It’s an avenue to know where your money goes and help you reach your financial goals, whether it’s a new home, a comfortable retirement or just making it to your next paycheck. (See the video “Budget your way to smarter spending.”)

When all is said and done, you simply can’t spend more than you make, at least not for long. (See “Money trouble? It’s your own fault.”)

What’s going out?

The first step is figuring out where your money goes right now. Use an online worksheet or a plain old notebook to keep track of your spending for a few weeks. Go through your checkbook and credit card statements. Add up the amounts, and you’ll have a good idea about your spending habits. (Take our “Savvy Spending Quiz.”)

A few things to consider:

• Common budget categories include housing (rent or mortgage, homeowner dues), recurring bills (cable, utilities, insurance and credit card minimums), food and entertainment.

• Let your categories fit your life. You might have expenses for school-related items (tuition and books), pet care or travel. If your hobby is your passion, make it a category.

• Account for big expenses that occur once or twice a year, such as car insurance.

• Consider making your vehicle its own category. Payments are only the start. (See “The real reason you’re broke.”)

What’s coming in?

When your expenses are tallied, go through your pay stubs and calculate your average monthly income. Don’t forget to include interest income, dividends, bonuses and alimony.

Once you know how much you earn and how much you actually spend, decide where and how much you want to spend. Divide by 12, and voilà – you’ve got a monthly budget. Adjust as necessary until your monthly budget equals your monthly income.

Some things to keep in mind:

• Figure out which of your expenses are wants and which are needs. Actual needs are fairly limited: food, shelter, clothing. Nearly everything else is a want, but even the way we fulfill our needs involves choice. (See “9 money rules to live by.”)

• Try “The 60% Solution.” Essential spending comes out of the first 60% of your income. The rest includes retirement, emergencies, debt repayment, fun money, etc. (See “How to build your first budget.”)

• Prioritize. Fund your retirement first, no matter what. Put enough in your 401(k) to grab the employer match. Then start tackling your debts.

• Don’t forget an emergency fund. This will go a long way to keeping you out of debt should the unexpected happen — and it will. If you don’t have funds now, use your income-tax refund or set up a regular electronic transfer from checking to savings. (See “Why you need $500 in the bank” and the video “Everyone needs an emergency fund.”)

Take a little off the edges

Once you’re on your way, keep track — at first weekly, then monthly — of where you’re going off budget and adjust your allocations.

Food, for instance, often goes unchallenged. You might wince at the checkout counter, but you do have to eat. Still, there are ways to cut the food budget without sacrificing quality or quantity. (See “Take a big bite out of grocery bills.”)

• Many stores reduce their products based on a 12-week cycle, so notice when something goes on sale, but don’t buy until it hits the rock-bottom price.

• Keep a notebook for a while so you get to know the rock-bottom prices on items that you frequently purchase. Keep track of which products are cheaper store by store.

Food isn’t the only place for savings. Here are some other ideas for keeping your budget on track:

• Bookmark deal-finding Web sites and check them before making any purchase online or any big purchase offline. Check sites such as MyBargainBuddy.com, AbleShoppers and Dealnews for online bargains and coupons. (See “The Web’s best shoppers.”)

• Review your habits. Do you need the full-on cable package or caller ID? Do you pay full price at a convenience store for items you could buy for less on your weekly grocery shopping trips? (See “When cheap is a way of life.”)

• Some people fritter away cash; others use a debit card as if it had unlimited credit. Whichever you might be, consider converting. A debit card devotee is more likely to think twice about spending cash, especially if you leave your ATM card at home.

• If things still aren’t adding up, look at whether you need to adjust your allocations or change your spending habits. (See “5 steps to fix a broken budget.”)

Building the budget habit

Successful budgeting takes time and persistence so don’t be discouraged if you don’t hit your monthly goals at first. Here are some ideas to make it easier:

• Write it down. If you don’t, you probably won’t stick to it.

• When good fortune comes your way in the form of an “extra” paycheck or a bonus, pay an annual premium, make an additional mortgage payment or use it for seasonal extras, such as summer vacation costs or Christmas presents. (See “What to do with ‘extra’ paychecks.”)

• If you can’t spend less, earn more. (See “20 ways to make an extra $100 a month” and “Empty your closets, fill your pockets.”)

• Get into the habit of thinking ahead. If you know your situation is going to change — a new baby, new winter clothes, a new job — plan for it and try to pay cash.

• Remember, budgeting is the means, not the end. Keep spending “mistakes” in perspective.

• As your income climbs, don’t splurge until you’re sure you’re staying ahead of inflation. A good budget grows with you, so it’s worth re-evaluating your budget every year.

Published Jan. 4, 2008

Oxford Business Group

11 March 2008

Malaysia’s political landscape was dramatically transformed last weekend as the ruling coalition government, Barisan Nasional (BN), suffered its lowest margin of victory in 50 years. BN secured just under two-thirds of the federal parliament, a significant departure from the previous elections held in 2004, when the party won 90%. Islamist and leftist opposition parties also won control of five of the country’s 13 states, up from one in the previous term.While BN won the election as expected, few observers had anticipated that the crucial two-thirds majority, which allows the government to change the constitution at will, would not be attained.
 

The governing regime has done well to improve the economy, and Malaysia experienced GDP growth of 6.3% in 2007, as well as a 69% jump in foreign direct investment (FDI) to $13.7bn. In this respect, many feel the surprising results stem not from economic, but from political issues, pointing to the unprecedented swing as an indication of growing voter frustrations over inflation, racial tensions and a government that did not perform as much as promised to curb corruption and increase transparency. Since its independence in 1957, Malaysia has had one ruling party with little in the way of opposition representation in parliament, and observers now expect a short period of fragmented government.

The governing party is currently engaged in massive spending programmes, which over the past 12 months have included the introduction of five designated economic development zones. Some fear that many of these projects could be stalled or scaled back should the new state governments decide to review them.

Another concern is related to the potential for a slower decision making process for the passing of crucial economic legislation. For example, BN had indicated prior to the elections that it would review lowering the current subsidy on oil prices in 2008, a policy to which the opposition has already expressed disapproval.With stocks markets across Asia already reeling over investor concerns abuot a possible US recession, the unexpected election results could not have come at a worse time for Malaysia’s stock exchange. On the first Monday of trading after the elections, the benchmark Kuala Lumpur Composite Index (KLCI) fell by 10%. This was the biggest one-day drop since the Asian financial crisis in 1998, and led to the suspension of trading for a brief period towards the end of the day.Share prices in 99 of the top 100 KLCI member companies fell, with major companies linked to the federal government or behind large government projects accounting for the largest declines.

Of the four new states in which the opposition was victorious, foreign investors are looking most closely at the island of Penang, a key manufacturing base and home to major US electronics firms such as Dell, Intel and Motorola. Lim Guan Eng, Penang’s new chief minister elect, has assured foreign investors that the state’s pro-business policies will remain unchanged, telling press, “We will not undertake any policies that will frighten investors away.” Vincent Leusner, president of the American Malaysian Chamber of Commerce, said, “The opposition victories will not hurt American investment.

“Nonetheless, analysts believe that foreign investors will act with caution for the time being, in order assess the impact of the opposition influence on economic policies.While, as demonstrated in the stock market, reactions to such dramatic results will often be knee jerk, political and economic observers point out that there may be substantial longer-term positives. As volatility in a country’s election results is generally seen as indicative of the degree of democracy, some have suggested the recent events could be a catalyst for greater transparency and corporate governance. The private sector may be able to look forward to an era of more transparent public tendering and awarding of government projects.Gerald Ambrose, managing director of Aberdeen Asset Management Malaysia, told OBG, “A powerful opposition is a positive development for the long term, providing checks and balances for trillion ringgit government spending.

“The absence of violence following such hotly contested elections, as well as the success of opposition parties, are also encouraging signs negating any possible suspicions of elections fraud or deceit.The last time the ruling coalition failed to attain the two-thirds margin was in 1969, when polls were followed by a period of race riots and a declaration of a state of emergency. While the past few days have seen some small-scale demonstrations, they have remained peaceful and orderly, a testament to what many believe is a maturing democracy. 

MONDAY, August 13 (Health Day News) — When it comes to a woman’s choice of a life-partner, a man’s face may mean a lot, a new study finds.

Many women regard men with masculine facial features — such as a square jaw, larger nose and smaller eyes — as unsuitable long-term partners, because they’re more likely to be domineering, unfaithful, unaffectionate and poor parents, U.K. researchers have found.

On the other hand, women believe that men with finer facial features — fuller lips, wide eyes and thinner, more curved eyebrows — to be more committed, less likely to cheat, and to make better parents, said the study by psychologists at Durham and St. Andrews Universities.

For this study, British women were asked to view pictures of men’s faces that were digitally altered to look more masculine or feminine and to predict the men’s personality traits, including sexual behavior and parenting skills.

The findings are published in the current issue of the journal Personality and Individual Differences.

“This research shows a high amount of agreement between women about what they see, personality wise, when asked to ‘judge a book by its cover.’ They may well use that impression of someone to decide whether or not to engage with that person. That decision-making process all depends on what a woman is looking for in a relationship at that time of her life,” lead author Dr. Lynda Boothroyd, a lecturer in the department of psychology at Durham University, said in a prepared statement.

She and her colleagues said their findings provide new information about what people see in others when they’re selecting potential partners and may help advance research in areas such as evolutionary biology, fertility and genetics. It may also offer new insights for use in relationship counseling and psychology.

A Charlotte, NC, lawyer purchased a box of very rare and expensive cigars, then insured them against fire, among other things. Within a month, having smoked his entire stockpile of these great cigars and without yet having made even his first premium payment on the policy, the lawyer filed claim against the insurance company. In his claim, the lawyer stated the cigars were lost “in a series of small fires.” The insurance company refused to pay, citing the obvious reason that
the man had consumed the cigars in the normal fashion. The lawyer sued….and WON! (Stay with me now.)

In delivering the ruling, the judge agreed with the insurance company that the claim was frivolous. The judge stated nevertheless, that the lawyer “held a policy from the company in which it had warranted that the cigars were insurable and also guaranteed that it would insure them against fire, without defining what is considered to be unacceptable fire” and was obligated to pay the claim. Rather than endure lengthy and costly appeal process, the insurance company accepted the ruling and paid $15,000 to the lawyer for his loss of the rare cigars lost in the “fires.”

NOW FOR THE BEST PART….Ya GOTTA LOVE this!!

After the lawyer cashed the check, the insurance company had him arrested on 24 counts of ARSON! With his own insurance claim and testimony from the previous case being used against him, the lawyer was convicted of intentionally burning his insured property and was sentenced to 24 months in jail and a $24,000 fine. This is a true story and was the

winner in the recent Criminal Lawyers Award Contest.  

Based on “Thought for the Day: Do You Need to Be Right?” By Dianna Podmoroff
Thought for the day is a regular feature at the Mind Tools Career Excellence Club.

Is being right more important to you than reaching agreements, or getting along with others? In a world where knowledge and education are valuable commodities, it’s easy to get caught up in wanting to be right all the time. You’re smart and educated, so why shouldn’t what you say be right?

Think about this – even if you ARE right, if asserting that fact results in damaged relationships, failures to reach agreement, or excessive time wasted arguing, is being right really worth it?

When you allow others to be right, you open yourself up to other perspectives, and you are perceived as a person who is willing to negotiate and reach agreements; not just argue to the death.

When you are experiencing conflict try saying, “You are right.” Watch how the dynamic of the conversation changes. Certainly there are times when being right is the only path to pursue: But when being right becomes your mantra on every point, every time, that’s when you need to step back and ask yourself why it is so important.

Try finding ways in which the other person is right: It’s a great starting place for negotiating your win-win solution!

This is an interesting article by Bruna Martinuzzi.

The Most Beautiful Word in the English Language

Many years ago, one of my university professors mentioned that “windowsill” was voted the most beautiful word in the English language. Being an armchair linguist, this factoid naturally stayed with me. Words have enormous power. They can make us erupt into laughter or bring tears to our eyes. They can influence, inspire, manipulate and shock. They can build and destroy. Some words have different effects on different people.

One such word is humility.

It is one of those words that are seldom in neutral gear. Some, like me, love the word and all it stands for. Some almost fear it and interpret it synonymously with lack of self-confidence or timidity. The dictionary defines humility as modesty, lacking pretence, not believing that you are superior to others.  An ancillary definition includes: “Having a lowly opinion of oneself, meekness”.

The word “humility” first struck me in the context of leadership when Jim Collins mentioned it in his seminal work Good to Great: Why Some Companies Make the Leap… and Others Don’t. In this book, Collins examined companies that went from good to great by sustaining 15-year cumulative stock returns at or below the general stock market, and after a transition point, cumulative returns at least three times the market over the next 15 years.

Among the many characteristics that distinguished these companies from others is that they all had a Level 5 leader. Level 5 leaders direct their ego away from themselves to the larger goal of leading their company to greatness. These leaders are a complex, paradoxical mix of intense professional will and extreme personal humility. They will create superb results but shun public adulation, and are never boastful.

They are described as modest. An example of such a leader who epitomized humility is David Packard, the co-founder of Hewlett-Packard, who, in Jim Collins’ words, defined himself as a HP man first and a CEO second. He was a man of the people, practicing management by walking around. Shunning all manner of publicity, Packard is quoted as saying: “You shouldn’t gloat about anything you’ve done; you ought to keep going and find something better to do.” Another great leader is Patrick Daniel, CEO of North American energy and pipeline company Enbridge, who espouses two leadership attributes: determination to create results and humility, shifting the focus away from himself and continually recognizing the contributions of others. “I have learned through the lives of great leaders,” he said, “that greatness comes from humility and being at times, self-effacing.”Clearly these leaders, and many others like them, don’t espouse the meaning of humility as “meek”. On the contrary, it is a source of their strength. But the notion of being self-effacing is one that we struggle with in our competitive culture, prescribing that we take every opportunity to toot our own horn, and that we don’t dare leave the house without our dynamic elevator speech all rehearsed.We often confuse humility with timidity. Humility is not clothing ourselves in an attitude of self-abasement or self-denigration. Humility is all about maintaining our pride about who we are, about our achievements, about our worth – but without arrogance – it is the antithesis of hubris, that excessive, arrogant pride which often leads to the derailment of some corporate heroes, as it does with the downfall of the tragic hero in Greek drama. It’s about a quiet confidence without the need for a meretricious selling of our wares. It’s about being content to let others discover the layers of our talents without having to boast about them. It’s a lack of arrogance, not a lack of aggressiveness in the pursuit of achievement.An interesting dichotomy is that, often, the higher people rise, the more they have accomplished, the higher the humility index. Those who achieve the most brag the least, and the more secure they are in themselves, the more humble they are.

“True merit, like a river, the deeper it is, the less noise it makes”. (Edward Frederick Halifax). We have all come across people like that and feel admiration for them.

There is also an understated humility of every day people we work with who have the ability to get the job done without drawing attention to themselves. Witness the employee who is working at his computer into the late hours, purely motivated by a keen sense of duty, the executive assistant who stays after 5:30pm on a Friday night in an empty office to await a courier, or the manager who quietly cancels an important personal event to fly out of town to attend to the company’s business. This is akin to the philanthropist who gives an anonymous donation.

Humility is also a meta-virtue. It crosses into an array of principles. For example, we can safely declare that there cannot be authenticity without humility. Why? Because, there is always a time in a leader’s journey when one will be in a situation of not having all the answers. Admitting this and seeking others’ input requires some humility.

Another mark of a leader who practices humility is his or her treatment of others. Such leaders treat everyone with respect regardless of position. Years ago, I came across this reference: the sign of a gentleman is how he treats those who can be of absolutely no use to him.

Something interesting happens, too, when we approach situations from a perspective of humility: it opens us up to possibilities, as we choose open-mindedness and curiosity over protecting our point of view. We spend more time in that wonderful space of the beginner’s mind, willing to learn from what others have to offer. We move away from pushing into allowing, from insecure to secure, from seeking approval to seeking enlightenment. We forget about being perfect and we enjoy being in the moment.

Here are a few suggestions on practicing humility:

1. There are times when swallowing one’s pride is particularly difficult and any intentions of humility fly out the window, as we get engaged in a contest of perfection, each side seeking to look good. If you find yourself in such no-win situations, consider developing some strategies to ensure that the circumstances don’t lead you to lose your grace. Try this sometimes: just stop talking and allow the other person to be in the limelight. There is something very liberating in this strategy.   
2. Here are three magical words that will produce more peace of mind than a week at an expensive retreat: “You are right.”
3. Catch yourself if you benignly slip into over preaching or coaching without permission – is zeal to impose your point of view overtaking discretion? Is your correction of others reflective of your own needs?
4. Seek others’ input on how you are showing up in your leadership path. Ask: “How am I doing?” It takes humility to ask such a question. And even more humility to consider the answer.
5. Encourage the practice of humility in your company through your own example: every time you share credit for successes with others, you reinforce the ethos for your constituents. Consider mentoring or coaching emerging leaders on this key attribute of leadership. There are many benefits to practicing humility, to being in a state of non-pretence: it improves relationships across all levels, it reduces anxiety, it encourages more openness and paradoxically, it enhances one’s self-confidence. It opens a window to a higher self.

For me, it replaces “windowsill” as the most beautiful word in the English language.

Copyright © 2006-2007 by Bruna Martinuzzi. All Rights Reserved.Based in British Columbia, Bruna is the President and Founder of Clarion Enterprises Ltd, a company which specializes in emotional intelligence and leadership training. Click here to contact her.

There once was very poor man living in a village who had a very fine horse. So fine, in fact, that the lord of the castle wanted to buy it. But the old man always refused. “To me this horse is not merely an animal. He’s a friend. How could I sell you my friend?”

One morning he went to the stable and found his horse gone.

All the villagers said, “We told you! You should have sold your horse. Now he’s been stolen instead. What terrible luck.”

“Bad luck or good luck,” the old man said. “Who can say?”

Everyone laughed at him. But 15 days later the horse returned, followed by a whole herd of wild horses. He had escaped from the stable, courted a young mare, and returned with the rest of the herd following behind!

“What luck!” the villagers cried. The old man and his son began training the wild horses. But a week later the man’s son broke his leg trying to train one of the horses.

 ”Bad luck,” said his friends. “What are you going to do now without your son to help you? You who are already so poor.”

“Bad luck, good luck, who can say?” the old man replied.

A few days later an army belonging to the lord of the land passed through the village and forced all the young men to become soldiers. All … except the old man’s son, because of his broken leg.

“How lucky you are,” the villagers cried. “All our children are gone to war, but you’ve been able to keep your son. Our sons will probably be killed …”

The old man replied, “Bad luck, good luck… who can say?”

The future comes to us in bits and pieces. We never know what lies in store for us. But if you always maintain a positive attitude the doors of chance remain open, and you will be a happier person.