Gold & Silver

Gold Investment Companies

In this article we discuss different gold investment companies and provide our gold price forecast for 2021 and beyond. We’ll also look at why gold may be a solid addition to your investment portfolio based on political and economic changes today.

Gold Investment Companies to Watch

Many Investors Believe that Gold Investment Companies Will Perform Well in the Future

The gold mine stock industry has been overlooked for many years. Moreover, precious metals have been unpopular and considered irrelevant. Since the 1990s, investors have been advising others to invest in stocks for pensions and 401(k) investments. In short, this advice was largely correct. As a result, Wall Street has hit all-time price levels in the past 20+ years. However, things may have shifted in 2020. Consequently, could this be the time to invest in gold investment companies?

Millionaire investor Doug Casey has been a proponent of owning gold investment companies for decades. In fact, he has been investing in gold mines for most of his life. During a recent interview, Casey discussed the political turmoil happening in the United States and rising gold prices.

“Look, there are quality small gold-mining companies run by really good, serially successful people that are geologists and mining engineers. That’s the kind of stuff you should buy. Buying major miners like Newmont and Barrick would also be profitable. But better to buy the next tier down — smaller, leveraged, growing. When these smaller gold stocks run, they can go 10 to 1 easily; some of them go 100 to 1. I’ve personally owned gold stocks that have gone 1,000 to 1… within just one gold cycle. So, this is the place to be, assuming I’m right about gold. I think I am.” -Doug Casey, The International Man

Accordingly, here are some gold investment companies that may be worth considering:

Barrick Gold (GOLD)     

One of the world’s largest gold mining companies, Barrick mines gold and copper. They operate in 13 countries. Barrick has been popular lately because of its ability to generate a cash flow resulting from mining.

Warren Buffet recently invested millions of dollars in Barrick Gold Stocks. It’s interesting to note that Mr. Buffet has avoided gold for many years. Apparently, he has reversed course and believes investing in gold stocks is important.

Franco-Nevada (FNV)    

A leading gold-focused royalty and streaming company. It operates from Toronto, Canada. Founded in 2007, they provide investors with exposure to the gold investment companies while limiting risk in the investment.

SPDR Gold Trust (GLD)

An ETF that holds physical gold. SPDR is billed as a cost-effective way for investors to profit from the gold bullion market with limited exposure to risk. It has been in operation since at least 2010. The fund also provided greater liquidity than holding physical precious metals.

Newmont Mining (NEM):

One of the world’s most popular gold investment companies. It claims to have the largest gold reserves in the world. It operates in 9 countries, including the United States.

Rio Tinto (RIO)

It is one of the largest international miners, operating in 36 countries worldwide. It mines iron ore, aluminum, copper, diamonds, titanium, borates and gold.

Kirkland Lake Gold (KL)

A much smaller operator, Kirkland Lake operates in Canada and Australia. Although Kirkland Lake is smaller, it boasts having no corporate debt and holds cash on hand.

Market Bubbles Historically Destroy Markets and Smaller Investors

In 2000, Many Retirees Lost 50% of Their Investments When the Dot Com Bubble Burst

The Dot Com Bubble that began in March 2000 caused the S&P 500 Index to drop almost 50%. This bubble bursting lasted until 2007. That means that if you were planning to retire in 2000, and many of your investments were locked into a Wall Street 401(k) that fell 50%, you couldn’t retire. Many people at this time were forced to return to work because they couldn’t afford to retire.

Currently, Wall Street stock prices are at record-breaking levels. Prices are high, interest rates are low, and everyone is cheering the mania. The question is whether markets are overpriced in a bubble.

Current Economic Crisis in the United States

According to Experian data, consumer debt has grown to around $14 Trillion in 2019. Debt for Americans has been increasing steadily since at least 2009. This debt includes things like credit cards, home loans, vehicle loans and student loans.

In addition, Americans are struggling financially right now because of COVID-19 shutdowns. Many people live paycheck-to-paycheck and have no savings. As a result, a sudden loss of employment caused them to face economic ruin or bankruptcy. Unemployment rates are estimated to be around 10-20%. This is the highest unemployment rate seen in decades.

Debt, Mortgages and Home Foreclosures in the United States

  • Total Debt to GDP for the United states is over 150%
  • The Federal Reserve currently owns approximately 30% of all mortgages in the U.S. today (over $2 Trillion)
  • US National Debt is now over $26 Trillion
  • Home foreclosures are beginning to increase

Alarming Trends at the Federal Reserve and Debt-to-GDP Ratio

Two alarming trends are that the debt to GDP ratio is at 150% and that the Federal Reserve Bank owns 30% of US mortgage securities. First, most experts agree that when the debt-to-GDP ratio climbs higher than 100%, you are in the economic danger zone. Historically, high debt-to-GDP ratios have ended badly.

Unfortunately, this is bad news for the United States economy. As a result, people’s investments and retirements could be badly damaged. So, what does an investor do to minimize risk and survive the upcoming economic depression? Let’s look at gold.

Gold Has a Limited Supply and Growing Demand

The Supply of Gold Is Finite; Demand for Gold Includes Industry, Jewelry and Money

There is a limited supply of gold on Earth. Moreover, gold miners throughout the world have a finite quantity of gold available for mining. At some point, the amount of gold removed from mines will diminish and become zero.

At the same time, gold demand continues to grow. For instance, gold has many uses in technology, jewelry, medicine and money. Jewelry made of gold has been popular for millennia. In addition, gold continues to grow in demand and popularity, especially in Asia. In fact, 70-80% of gold mined today goes to create jewelry.

Also, there are many industrial uses for gold including electronics, aerospace and medicine. For example, gold is a very efficient conductor of electricity. This property is utilized in many electronic components such as cell phones and computers. In addition, gold is a superior element to work with in dentistry. More important, gold is non-reactive, malleable and has anti-bacterial properties.

Finally, gold coins remain in demand all over the world. Coins made of gold have been used for hundreds or thousands of years. They are easily recognizable and highly desirable. More importantly, gold coins have withstood the test of time and continue to be sought after in the 21st century. Real money is sound money. Obviously, gold is real, sound money. Clearly, gold investment companies can be a great addition to an investment portfolio.

Five Reasons to Buy Gold:

  1. Gold is a store of value. National currencies (even the U.S. Dollar) come and go. But Gold has been around for thousands of years as real money. 
  2. It is a liquid asset. Gold (and other metals) can be easily bought and sold in most large cities around the world. It can be exchanged for most currencies this way.
  3. Gold is a tangible asset. You can hold gold coins in your hand or put them in your safe. No waiting for the bank to open to get them. No worrying about destruction by fire or a hacker.
  4. It is a hedge against inflation. Gold tends to thrive during a crisis. Investors tend to jump into gold when stocks go lower.
  5. Gold is private. No other asset offers privacy like a gold coin. A transaction in gold between you and another person is truly a private affair.

Gold in Your Portfolio

It is common to hold anywhere from 5-10% of an investment portfolio in gold investment companies. In fact, there are some international investment portfolios known to hold as much as 30% of assets in both physical gold and gold investment companies.

History of Gold

The use of gold as a commodity and as money dates back at least 4,000-6,000 years. Approximately 4,500 years ago, the Mesopotamians made jewelry from gold. However, it’s believed that gold was being used even prior to this era. For example, gold was used as a construction material to decorate walls, burial sites and masks of cultures such as the Egyptians, the Greeks and the Romans.

Gold for Trading and Exchange

It is believed that around 1,500 B.C. in Egypt, gold was being used as the official currency of exchange for merchants and traders. Shortly thereafter, gold took its place as the primary trading currency throughout the world. Mining for gold became a major industry world-wide. Coins made of gold were produced and distributed throughout Europe and Asia.

Gold Standard Dollars

Fast forward to the year 1792. The United States passed the Coinage Act which dictates that silver and gold will be used as the standard for valuing currency. The Act defined the U.S. Dollar as equivalent to 24.75 grams of gold and 371.25 grams of silver. The paper currency printed in the United States was officially backed and redeemable in silver and gold.

Later, in 1968, U.S. Currency was no longer backed by gold. Then in 1971, the U.S. Dollar is devalued in price and the program of conversion of dollars back to gold was terminated. In other words, U.S. Dollars were no longer backed by gold.

The Beauty and Utility of Gold

Shiny gold coins and jewelry have been considered beautiful for centuries. Women and men have donned gold jewelry for as long as we have kept track of history. From a physical perspective, gold is malleable and easily altered to make jewelry, coins or even thin sheets. Scientifically, gold is non-reactive and non-corrosive, both of which are highly desirable characteristics. Gold is even safe to use in the human body. For example, dentists have used gold for years to repair teeth.

How to Buy Gold

Buy Gold as Physical Coins/Bars or Gold investment companies

Investing in gold has never been easier. Gold merchants and brokerage firms are competing for your business online. If you want to purchase physical gold, you can do this at your local coin shop.

Another option for purchasing gold is buying online. Buying from a website has become more secure in recent years, but you must do diligent research to verify the buyer. Only buy from established suppliers that have been around for a long time and have positive feedback. Preferably you can get a recommendation from a friend.

Finally, buying gold stocks is just as easy as buying stock in GM or Amazon. Many online brokerage firms offer the ability to buy these shares for a reasonable fee.

Future of Gold and Gold Investment Companies

Unemployment, Debt, 0% Interest and Fed Money Printing Drive Gold Prices Higher

We at Piggy Bank Coins believe that gold (and silver) and gold investment companies have a bright future. Holding a real money asset such as gold and gold investment companies will always be highly regarded by investors. In addition, having gold in your investment portfolio is considered by many to be a safe and secure option. It’s important to grow your wealth while minimizing risk. Specifically, gold is a real, tangible money that can be a store of wealth for a lifetime.

We believe the gold price forecast indicates that demand will continue to grow and that investors should continue to hold gold and silver. With the political and economic instability created in the United States, gold prices will likely increase. For instance, investors will continue to move toward safe harbors. Make no mistake, gold is the safe harbor.

Second, since 1944 the US Dollar has operated as the world reserve currency. However, the US economy appears to be faltering with high unemployment, high national debt, near-zero percent interest rates and inflation from Federal Reserve money printing. As a result, investors will be looking for something safe to hold on to, and precious metals may be that rock.

The Gold Price Forecast Predictions

Four Gold Price Predictions: $2,300, $3,000-$8,000, $15,000 and $26,000.

Goldman Sachs raised its gold price forecast in July 2020. The investing firm believes that gold will hit $2,300 per ounce as investors flee other falling price investments such as real estate.

According to Jeff Clark, Senior Analyst at GoldSilver gold has a 95% likelihood of going higher in 2021. In addition, he is predicting $3,000-$8,000 gold in the next 5 years.

In an interview with Kitco News in mid-2020, Investor Jim Rickards predicts that gold will rise to $15,000 per ounce before 2025. He bases his prediction on inflationary forces.

In the same interview with Jim Rickards, Investor Peter Schiff predicted gold will rise as high as $26,000 per ounce. He bases his prediction on extrapolating DOW Jones trading values in relation to gold in 1932 and currently.

Learn More about Gold and Silver

Get a copy of the “Free Gold and Silver Buyer’s Guide” today. It’s free and has some great information in it about investing.

If you want to learn about the history of money, check out Mike Maloney’s free “Hidden Secrets of Money” video series. It’s a gold mine of information that can help you better understand money and where the world stands today financially. Highly recommended!

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Disclaimer: It is important to note that Piggy Bank Coins does not provide financial advice. We don’t endorse or recommend any financial investments. Instead, we provide information for educational purposes to those seeking knowledge regarding personal finance. However, in the spirit of transparency, note that the author is an investor in cryptocurrencies, precious metals and some equities.

In addition, The Federal Trade Commission (FTC) requires that Piggy Bank Coins disclose to readers that we may receive commissions when you click our links and make purchases. However, this does not impact our reviews and comparisons. Moreover, we try our best to keep things fair and balanced, in order to help you make the best choice for you.


New Cryptocurrency To Invest In

Many experts predict Bitcoin price will rocket in 2021, potentially as high as $100k-200k. Although we can’t advise you on what you should invest in, we will share some options for a new cryptocurrency to invest in. In addition, we will discuss what cryptocurrency is, the pros and cons of owning cryptocurrency and some future price predictions.

2021 is definitely going to be a big year for Bitcoin and Ethereum, as well as several other cryptocurrencies. As institutional investors flood into Bitcoin and Ethereum, prices for altcoins are expect to rise exponentially. As they say, “a rising tide lifts all boats.” We will discuss why these two cryptocurrencies deserve serious consideration for investment options. In addition, we provide information on a new cryptocurrency to invest in.

What is Cryptocurrency?

Cryptocurrency is a digital asset. Payments occur between individuals on the internet. In addition, the best cryptocurrency uses cryptography to secure transactions on a network. Block chain technology is part of what makes the network secure. Miners use powerful computers to solve advanced equations in order to earn Bitcoin or other cryptocurrencies. Finally, mining makes the distributed ledger network secure. In addition, it ensures that transactions are complete. As a result, no one can cheat the system.

What is Block Chain?

how blockchain works

The block chain stores data on a public database. The blocks of information include transaction data, participant data and distinguishing data. Moreover, each block of data stores thousands of transactions under cryptographic lock and key. A network of computers operates the blockchain. They make the network run and keep it secure by solving algorithmic hashes. The network computers earn cryptocurrency for their work. Finally, the bitcoin block chain technology uses a distributed ledger. Bitcoin’s network security hinges on the distributed ledger that the network participates in.

Ethereum: A Block Chain Project That Uses Smart Contracts to Power Other Projects

Ethereum is an open-source, decentralized block chain project. It is known for its smart contracts. It provides open access to money, via the Ether cryptocurrency coin (ETH), and technology, exemplified by the thousands of applications that are operating on the Ethereum network. The ETH coin of Ethereum is second only to bitcoin in market capitalization.

Like Bitcoin, Ethereum is a Proof of Work consensus system. This means that powerful computers all over the world are continuously solving complexed equations in order to build blocks on the Ethereum block chain. Whichever machine or miner solves the problem quickest, completes the block and receives a reward as payment: ETH coin.

Although Ethereum shares some features with Bitcoin, such as being able to make peer-to-peer transactions, they serve different purposes and audiences. Bitcoin was the original decentralized payment system. As a result, banks do not manage payments. Ethereum’s primary purpose is to serve as the core block chain on which newer projects operate.

Ethereum uses a payment system for ETH. In addition, it implements smart contracts which allows entirely new projects to run on top of the Ethereum block chain. For example, in November 2017, the decentralized application “CryptoKitties” was launched. It is a digital collecting and trading app of virtual felines that works on Ethereum. As a result, Ethereum may be an important consideration for a new cryptocurrency to invest in.

Reasons Why Ethereum May Be One of the New Cryptocurrency to Invest In

  • Industry leader in smart contracts
  • Widespread use and adoption
  • $250 Billion market capitalization
  • Home of block chain decentralized applications (DApps)
  • Well established decentralized payment network
  • Serves as the block chain base for hundreds of projects
  • Independence from Banks
  • Border-less Payments
  • Low Fees
Ethereum Price Forecast

Other Cryptocurrencies to Consider

Here are some other cryptocurrencies that are worth looking at more deeply. Although Bitcoin is the most dominant and most secure cryptocurrency, there are many other cryptocurrencies that have strong security and strong use case value. A cryptocurrency investment portfolio may include other cryptocurrencies.

Cardano (ADA)

Named after Gerolamo Cardano, a 16th century Italian polymath, the Cardano project began in 2015. It is an open-source software project. Moreover, it innovates the design of cryptocurrency. Cardano has a long-term plan called the Road Map. Cardano’s most notorious feature is its implementation of peer-reviewed research. Research and peer review are a part of project development. It has a $27Billion market capitalization in 2021, which is 9X higher than just a year ago in 2020.

A team of academics, researchers and developers manage Cardano. They focus on solving cryptocurrency problems. Moreover, Cardano doesn’t focus on one use case scenario for cryptocurrency; instead, it appears to be tacking many problems at once, such as currency, proof of stake, smart contracts, scalability, security and even scripting. In addition, Cardano uses the delegated proof-of-stake method to maintain the network functionality. This is different because it is more efficient for electricity consumption. Cardano is the closest and most powerful competitor to Ethereum. It is also the most decentralized smart contract token, making it a favorite of investors. Cardano is definitely one to watch if you are looking for a new cryptocurrency to invest in.


XRP is a currency that operates on a digital payment platform known as RippleNet. The company known as Ripple operates XRP. The currency is not technically a cryptocurrency and doesn’t operate on a block chain. Instead, XRP is a centralized, distributed ledger technology. XRP is an engineered payment system. It is a new competitor to the SWIFT payment system. The SWIFT system is used in international banking.

Chainlink (LINK)

Developed in 2017, Chainlink is a decentralized network that connects smart contracts with real world data. Furthermore, the Chainlink decentralized oracle network is operated by node operators. In addition, operators that maintain nodes are paid LINK cryptocurrency. The nodes connect the system like links in a chain. Chainlink runs on the Ethereum network and plays a critical role in execution of smart contracts. It is one of the new rising stars of the cryptocurrency revolution and a new cryptocurrency to invest in.

Polkadot (DOT)

Another new rising star in the cryptocurrency space is Polkadot. The Web3 Foundation created Polkadot. Its primary function is to facilitate the operation of block chains together. The DOT coin functions in three ways: staking, bonding and networking. Finally, Polkadot contains special tools like specialization, scale and inoperability which act as catalysts between block chains.

Binance Coin (BNB)

Binance coin is a utility token. It is used to pay for Binance exchange fees. In addition, it also helps power the Binance decentralized exchange (DEX). The Binance coin is a deflationary coin. It is burned frequently by Binance. Part of the reason that BNB is so popular and successful is due the success of the Binance exchange. Binance is definitely a strong consideration when looking for one a new cryptocurrency to invest in.

Bonus: 2nd New Cryptocurrency to Invest In

The altcoins discussed so far have demonstrated longevity, strong communities and real use cases for their growth and development. We believe they are legitimate projects and not $h*t coins. Here are a few more altcoins that are a little riskier, but offer more growth (and profit) potential (Remember: do your own research before investing).

  • Elrond (EGLD)
  • Aave (AAVE)
  • Uniswap (UNI)
  • Oasis Network (ROSE)
  • Ramp (RAMP)
  • Synthetix (SNX)
  • Zilliqa (ZIL)
  • VeChain (VET)
  • Kyber Network (KYB)

Note: Some of these altcoins may be more difficult to obtain, especially for US Citizens. Again, these are high risk, and you can easily lose money here. Buyer beware.

Pros of Owning Cryptocurrency

Owning Cryptocurrencies May Save A Failing System

Owning cryptocurrencies requires that you have a future vision that is radically different than our current banking system. In addition, cryptocurrency is inherently risky and volatile for investors. However, many believe that cryptocurrency investment is a vote for monetary freedom and independence from governments.


Bitcoin doesn’t require using a bank; the bitcoin holder is the bank. Making borderless payments between friends became easier and more private. In addition, Bitcoin is deflationary, with only 21 million Bitcoins available for use. And, if you are starting to have doubts about government money printing and overspending, then Bitcoin is an obvious candidate for safe-haven status.

Furthermore, it is clear that the US Dollar and many other leading world currencies are struggling. Central banks around the world are printing larger sums of cash to cover debts and expenses, which weakens the currencies. As a result, investors are looking for safe places to maintain their wealth and currencies like the US Dollar become weaker. Cryptocurrencies can be an option for investors looking for a place to park their cash.

Cons of Owning Cryptocurrency

Fraud, Theft and Volatility Are Still Issues with Cryptocurrencies

There are some cons to owning cryptocurrency. In addition, cryptocurrency and the block chain space are a very new industry. Bitcoin is only 11 years old and there have been growing pains in the space. First, cryptocurrency has been vulnerable to fraud in the past. For example, $800 Million worth of Bitcoin was stolen from “Mt. Gox” crypto exchange in 2014. Second, scams have been a problem in the industry, especially with new projects. Finally, price volatility has frightened away many new potential Bitcoin users.

Future Predictions of Bitcoin and Ethereum Prices

Reputable Investors Foresee Exponential Growth in Bitcoin and Ethereum Markets

It seems clear that in 2021, Bitcoin and Ethereum will begin the next phase of expansion and adoption. As a result, the price of both cryptocurrencies will likely go much, much higher. These are certainly important when determining a new cryptocurrency to invest in.

Anthony Pompliano and Max Keiser, two well-known investors in the Bitcoin space believe that Bitcoin price will exceed $100,000 in the next few years. Other investors like Mike Novogratz and Chamath Palihapitiya believe Bitcoin price is destined to go even higher to levels like $400,000 and $1,000,000, respectively.

As for Ethereum, investors are optimistic about its future price as well. Ethereum’s market capitalization was only $40 Billion in 2020. It has recently reached $200 Billion in market cap and is rising. Continual adoption of Ethereum by institutional investors could easily lead to a $1 Trillion market capitalization, equating to a $4,000-5,000 ETH price. Investors such as Nigel Green and Blockfyre co-founder Simon Dedic predicted much higher prices ($2,500 – $9,000) for Ethereum in the future.

It should be noted that several of the investors mentioned are worth Billions cumulatively and have a clear track record of investing in markets. As a result, their predictions should be seriously considered.

Altcoin Exchanges and More Information

Hopefully this article has given you some ideas about choosing a new cryptocurrency to invest in. When making investing decisions it is important to do your own research and determine for yourself what is a good investment.

In addition, there are many exchanges that can be used to purchase cryptocurrency. Binance, Gemini, Kraken, Coinbase and so many more. Please do your research if you decide to invest. There are many scams in the crypto industry that are searching for an easy mark. If you want to learn more about Bitcoin and cryptocurrency, there are more articles by Piggy Bank Coins below. Thanks for reading and good luck!

Read More:

Cryptocurrency For Dummies

Prediction of Bitcoin Price

The Fastest Growing Cryptocurrency

Best Cryptocurrency


Top 10 Cryptocurrency

How to Become a Millionaire from Nothing

Cardano ADA News

One World Currency


It is important to note that Piggy Bank Coins does not provide financial advice. We don’t endorse or recommend any financial investments. Instead, we provide information for educational purposes to those seeking knowledge regarding personal finance. However, in the spirit of transparency, note that the author is an investor in cryptocurrencies, precious metals and some equities.

In addition, The Federal Trade Commission (FTC) requires that Piggy Bank Coins disclose to readers that we may receive commissions when you click our links and make purchases. However, this does not impact our reviews and comparisons. Moreover, we try our best to keep things fair and balanced, in order to help you make the best choice for you.


Budget Planning Process

In this article we discuss the budget planning process, getting organized, planning ahead, and saving money incrementally to avoid racking up debt on a credit card.

Here are some tips for how making a simple budget and getting organized can help you save for a rainy day (or investing) and avoid using the credit card to pay for things. In addition, we show you how to save incrementally today so that you can pay cash for things in the future.


Understanding The budget planning process Can Help You Develop Good Habits, Learn to Save and Become Organized

The primary reason you should the budget planning process is to create good money habits. Budgeting is one of the critical steps that can help you take control of your life and get ahead. In the process of taking control, we also prepare ourselves for better quality of life by having more money. Having more money means that you have more power to dictate the kind of life you want.

budget planning

What The budget planning process Can Help You:

  • Improve your credit score
  • Save for emergencies
  • Save and invest for retirement
  • Stop wasting money and curb bad habits
  • Promote a healthy, meaningful lifestyle
  • Buy a new home or upgrade your existing home
  • Obtain financial freedom

How to Create a Budget: Step by Step

Determine Your Income, Expenses and Calculate Disposable Income

Having a balanced budget means spending less of your paycheck. Preferably, you will have a significant amount of money left over to pay off debt and save for investing. In short, everyone should budget, whether you are a large corporation or just one person.

The budget planning process that we will be describing include how to create a monthly budget. Many people pay bills once per month and may get paid once or twice per month. In a simple example budget, you can create a column for expenses and a column for income. At the bottom of the page, you can total each column and the difference in the totals is either how much money you have left over or how much money you are short at the end of each month.

Step 1: Determine Your Income

Figuring out what your income is for the month is usually pretty simple. If you get paid every two weeks, then your income is the amount that gets deposited into your bank account. This is the amount that is left over after taxes are taken out. Make sure to account for each time you get paid in the month. If you don’t know what you get paid, you can look at your W-2 Tax form.

Step 2: Determine Your Expenses

Determining what your expenses are will take more time. There are several ways to determine how much you are spending each month. One way is to keep receipts and use bank statements to figure out what was spent each month. The second way to determine what you spend is to begin writing down each expense as it comes along during the month.

Fixed and Variable Expenses

As you begin tracking your expenses and determining how you spend, you will see that there are two types of expenses: fixed and variable. Fixed expenses are those that the amount paid never changes. For example, a mortgage or a car loan payment will always stay the same value, which makes planning ahead easy

On the other hand, variable expenses may vary each month. For example, your electric bill or the amount you spend dining out varies from week to week. With variable expenses, it is recommended that you calculate an average over several months and use the average for your budget.

Wants and Needs

Another budgeting consideration is wants versus needs. While learning the budget planning process, try to categorize your expenses into two groups: wants and needs. For example, a need is something like electricity or groceries. These are the things that you need to live.

In contrast, wants are the things that you pay for that may not be necessary. For example, wants can be things such as eating at restaurants, spa memberships and vacations. Moreover, you will look closer at your group of wants later when we make cuts to the budget.

Step 3: Put all the Budget Pieces Together

Now that we know what our expenses and our income are, we can add up everything to determine if we are over or under budget. The goal of having a balanced budget and learning the budget planning process is so our expense column will be less than our income. For example, if your income is $2,000 per month and your expenses are $1,500 per month, then you have $500 leftover each month ($2,000-$1,500 = $500).

The $500 that remains each month is your disposable income. Typically, you want to have a plan for what happens to the disposable income; otherwise, extra money has a way of getting spent. Moreover, it is recommended that you save and/or invest this money. However, we will touch on that later.


Sample budget provided by Piggy Bank Coins

Cut Expenses and Control Spending

Budget Not Balanced? Remove Expenses (Wants) from Your Budget: Memberships, Subscriptions, Etc.

If you are having trouble finding extra money in your budget, it may be time to cut expenses that are considered “wants.” No matter what kind of budget you have, its vitally important that you cut expenses. First, start by finding areas in your life where you can make cuts. It is helpful to make a list of what expenses are wants and needs. For example, paying for electricity is required; having a spa membership is not.

Ideas for Budget Items to Cut:

  • Memberships (Spa, Gym, Entertainment, etc.)
  • Subscriptions (Magazines, news, etc.)
  • Dining Out/Restaurants
  • Cable Bill
  • New credit card spending
  • Traveling/vacations

Learn to Live Below Your Means

Reduce Bad Habits like Eating Out, New cars and Designer Clothing

It’s critical that you form good money habits using the budget planning process. In many cases, frugal living is the cornerstone of financial success. This simply means spending less than you make. A simple monthly budget can assist you in determining whether you are meeting your goal. And these good habits can carry forward for a lifetime.

Unfortunately, living frugally is not popular in the 21st century. Popular culture dictates what “normal” consumer behavior looks like. And it’s considered normal to go out and spend money at restaurants, on vacation, etc. In addition, it’s “normal” to buy a big house and drive a new car. Having a full understanding of the budget planning process will help you create a successful budget.

Financially successful people don’t ascribe to normal behaviors. Those who attain financial success only purchase what is needed. They don’t buy new cars or fancy things. As a result, the extra money saved from this frugal behavior is put to work in investments.

Beware of Credit Cards and Debt

Credit Cards Can Create Painful Financial Lessons for You by Overspending and Interest

One dangerous lesson to learn is overspending on credit cards. In the modern era, gaining access to credit is far too easy.

Having a credit card can be a double-edged sword for anyone. First, using a credit card can be a learning tool about how debt works. In addition, you can learn about paying bills each month. However, there’s a risk that comes with credit: overspending. When you spend more money than is allowed on the credit card, or spend more than can be paid back, it can be a painful lesson in finance. However, sometimes difficult lessons can be valuable and last a lifetime.

If you make a mistake with a credit card, or overdraft an account, it can become a learning tool. Use the situation as an opportunity to learn from the mistake and implement better budgeting habits. Everyone learns the lesson of debt and compounding interest when we have to pay back what was borrowed, plus interest.

Maintenance: Review Weekly/Monthly

Review the Budget Weekly to Assess Goals and Make Adjustments

It’s important to review your budget on a weekly basis to determine if you are meeting your goals. Are you sticking to the spending requirements that you set in your budget planner book?

Revisiting your budget on a weekly basis will allow you to determine if the budget is working. In addition, you will be able to adjust it where needed.

You don’t want to cheat on your budget, but at times you’ll need to update expenses. In addition, you are compiling information over a monthly time period. As you gather this information, you will learn more about your own habits and how you can improve your personal budget.

For example, perhaps you spend less on fuel every week then expected, but you forgot to include the toll fees on your way to work each day. You will make adjustments to your budget accordingly.

Set Goals: Learn to Save Money Every Paycheck

Put Aside 10-15% of Your Regular Income for Investment

One of the habits that are important related to money management for you is learning to save some of each paycheck or from their allowance. Make it a personal goal to save 10-15% your paycheck each month. After a short time, you will realize that you don’t even miss the money.

Make saving 10-15% of each paycheck easy by setting up an automatic money transfer to their savings account. For example, each time their paycheck is deposited into the checking account, have an automatic transfer set up that moves money into the savings account. Some people find it helpful to have a savings account that is in a different bank. This reduces the temptation to spend savings.

Saving a small portion of your regular earnings is far from a new concept. Financially successful people have been doing it for hundreds or thousands of years. Saving can be a great tool when it comes to money management for you. Read The Richest Man in Babylon to learn more.

Always Keep an Emergency Fund

Unfortunately, emergencies happen to all of us. Having money for an emergency is critical. Many investment and debt consultants recommend that you start with $1,000.

Emergencies can come in many forms. Examples of emergencies you should be prepared for include medical issues, home repairs, car repairs, natural disasters, etc.

Saving for emergencies should probably be one of the first things that you do, even before saving for retirement. Make it a priority in your budget and you will rest better at night knowing you have prepared for the future.

Develop Good Habits and Learn Investing

Good Habits Include Budget Control, Staying the Course, Investment Knowledge and Discipline

Developing good money habits is critical on the path to acquiring wealth. Once you establish goals and a budget plan, you must implement good habits. Good habits include:

  • Budget Control
  • Staying the Course
  • Investment Knowledge
  • Strong Habits and Discipline

Budget control means that you operate under a balanced budget. Spending is controlled so that disposable income is saved or invested. Learning to invest now can make life easier for young people as they move into middle age.

Staying the course requires that you consistently repeat what you are doing, so long as you are successful. If something doesn’t work, it can be changed. But, the power of earning from compounding interest is continuously investing money.

Take Control Today – Start Budgeting!

If you have read this far, then you are clearly here for a reason. You are determined to make a change in your life and your behavior. A budget can be a great tool to assist you in being successful in life. Every day that you procrastinate to start a budget is just delaying your future success.

Wrap Up: The Budget Planning Process

As you can see, learning the budget planning process is not that complicated. Learning to budget simply requires developing a plan and sticking to the plan. You must also be organized and committed to the plan. Ultimately, learning the budget planning process is a clear, simple way to be successful with money.

 Read More:

The Best Budget App

Why Saving Money is Important

Financial Planning Services

Value Investing Books

10 Things to Know Before Starting a Budget

Wealth Building Cornerstones

Best Investing Books of All Time

How to Become a Millionaire from Nothing

How Much Savings You Should Have at 40

Why Saving Money is Important

Debt Elimination


It is important to note that Piggy Bank Coins does not provide financial advice. We do not endorse or recommend any financial investments. Instead, we provide information for educational purposes to those seeking knowledge regarding personal finance. However, in the spirit of transparency, note that the author is an investor in cryptocurrencies, precious metals and some equities.

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