Budgets and Budgeting

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    It’s Not Too Late to Rein In Holiday Spending

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    Research suggests that you’ll spend less than you otherwise would by setting a strict budget — even if you go over the budget.Black Friday and Cyber Monday have come and gone. So you may think that setting limits on holiday spending is a lost cause, right?Not so, said Jamie L. Clark, a certified financial planner in Seattle. The December holidays are still weeks away. “It’s never too late to make a plan.”Chuck Howard, an associate professor of business administration at the University of Virginia’s Darden School of Business, said research suggests you’ll spend less by setting a holiday budget that’s “optimistically low.”That’s because even when compliance with budgets is weak, setting stricter, even somewhat unrealistic budgets tends to lead to lower spending, according to a study he helped write on the influence of budgeting on personal spending.Dr. Howard cited this example. Say you usually spend $500 a month dining out. You may think a realistic budget is $400 a month. But if you really want to cut back, you should set a budget of, say, $250. That way, if you spend $350, you’ve still spent much less than you used to.A tight holiday-spending limit serves as a reference point, he said, and even if you surpass it, you’ll probably spend less than if you had set a higher limit or hadn’t set a budget in the first place.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

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      France’s Prime Minister Pushes Through Budget Bill; No-Confidence Vote Could Follow

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      A collapse of the government could further unnerve financial markets since it would put a quick passage of the budget at risk.Prime Minister Michel Barnier of France pushed a budget bill through the lower house of Parliament without a vote on Monday — a risky move that sets the stage for a likely no-confidence motion this week that could topple the government.The prospect of a government collapse — and of a failure to pass a budget — has rattled financial markets, sharply increased France’s borrowing costs, and further deepened the uncertainty that has gripped the country since snap elections last summer yielded no clear parliamentary majority.The fate of Mr. Barnier and of his cabinet, both appointed by President Emmanuel Macron just three months ago, now rests almost entirely in the hands of Marine Le Pen’s far-right National Rally party.Mr. Macron, whose term runs through mid-2027, will remain as president even if Mr. Barnier and his cabinet fall. But Mr. Macron will need to appoint a new prime minister.Ms. Le Pen and Mr. Barnier, a veteran center-right politician, have engaged in a game of chicken over the past week. Ms. Le Pen dangled the threat of a no-confidence motion ever more vocally if Mr. Barnier did not accede to her demands on the budget. Mr. Barnier warned of “serious turbulence on the financial markets” and the troubles ahead if the country reaches the new year without a budget — warnings that Ms. Le Pen has dismissed as fear-mongering and “fake news.”Mr. Barnier made some concessions, announcing that he was scrapping a hike in electricity taxes and reducing health care coverage for undocumented people. But Ms. Le Pen indicated those changes were not enough to sway her lawmakers from joining those on the left who oppose Mr. Barnier’s leadership in voting to topple the government.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

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      UK Budget: Labour Party to Raise Capital Gains and Inheritance Taxes

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      Rachel Reeves, the new finance minister, announced substantial tax increases in her first budget as she sought to strengthen public finances and services.The new British government, led by the Labour Party, said it would substantially raise taxes and borrow more for investment as it sought to steer the country out of a long run of economic stagnation.Rachel Reeves, the chancellor of the Exchequer, delivered her first budget — and the first one ever by a woman — in Parliament on Wednesday. In a nearly 80-minute speech, Ms. Reeves announced about 40 billion pounds ($51.8 billion) in tax increases, more than half of which would come from higher taxes that employers pay on their workers’ salaries. She also increased capital gains and inheritance taxes.“The choices that I have made today are the right choices for our country,” Ms. Reeves said. “That doesn’t mean these choices are easy.”The budget was the first big opportunity for the Labour Party to set Britain’s economic agenda after it was swept into office with a large majority in July’s general election after 14 years out of power.But after a turbulent few months in office for the Labour Party, the budget has been seen as a reset moment for the party itself. Keir Starmer, the prime minister, said this week that the budget would “light the way” toward the government’s priorities of ensuring financial stability, improving public services and encouraging investment.For months, Ms. Reeves has warned that this budget would include “difficult” choices, signaling that Britons will have to swallow pain now for a bigger payoff later. These choices, government officials have said, will help the government achieve its goal of making Britain the fastest-growing economy in the Group of 7.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

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      A Bargain at the Opera: Philadelphia Offers All Seats for as Low as $11

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      Seeking new audiences, Opera Philadelphia is putting in place a pay-what-you-can model, one of the first of its kind by a major opera company.In Philadelphia, a night at the opera may now be cheaper than going to the movies.Opera Philadelphia, a company with a reputation for innovation and ambition, announced on Tuesday that it was putting in place a pay-what-you-can model for the 2024-25 season, with all tickets for all performances starting at $11. The initiative, which the company calls Pick Your Price, is aimed at attracting new audiences.“People want to go to the opera, but it’s expensive,” said Anthony Roth Costanzo, the celebrated American countertenor who became the company’s general director and president in June. “Our goal is to bring opera to more people and bring more people to the opera.”It immediately proved popular. On Tuesday, the day the initiative was announced, Opera Philadelphia said it sold more than 2,200 tickets for the coming season, compared with about 20 the day before. The tickets were originally priced at $26 to $300.High ticket prices have long been a barrier to audiences, and especially to newcomers. In recent years a number of performing arts groups, including Lincoln Center, the Chicago Sinfonietta and Ars Nova, the Off Broadway incubator, have experimented with pay-what-you-can approaches. Other opera companies have experimented with discounts, including rush tickets and deals offered to young people. But Opera Philadelphia’s approach was one of the boldest yet.Its website explains that all tickets start at $11 but that people will be given the option of choosing to pay much more, including the standard price.Like many nonprofit performing arts organizations, Opera Philadelphia gets much more of its revenue from philanthropy than through ticket sales. Radically lowering the prices could encourage more donations, which will no longer risk being seen as subsidizing an expensive art form that is out of reach for many people. And Costanzo said that the new model would allow the company to concentrate more on staging interesting works, and less on worrying about ticket sales.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

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      France Warned by E.U. About ‘Excessive’ Deficit

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      The rebuke for breaking European Union rules that require strict financial discipline comes two weeks before French voters head to the polls for parliamentary elections.Add an entry to the list of troubles facing President Emmanuel Macron of France less than two weeks before pivotal legislative elections: potential financial penalties by the European Union for failure to rein in the nation’s ballooning deficit and debt.The reprimand, announced Wednesday in Brussels, highlighted France’s fragile finances at a moment of political turmoil, as the far right National Rally party, led by Marine Le Pen, and a left-wing coalition, the New Popular Front, appear increasingly positioned to form a new government that could weaken Mr. Macron’s grip on power.Mr. Macron threw French politics into disarray earlier this month by calling for snap parliamentary elections after his party was battered by the far right in European Parliament elections.The fiscal warning by E.U. authorities set the stage for a possible confrontation between Brussels and Paris. Both the National Rally and the New Popular Front have pledged to spend more on public services at a time when Mr. Macron is being forced to find deep budgetary cuts of up to 25 billion euros ($26.9 billion) this year to improve the nation’s finances. The opposition parties, however, are critical of E.U. institutions, and want to ease rather than tighten fiscal policy.France is in debt to the tune of around €3 trillion, or more than 110 percent of gross domestic product, and a deficit of €154 billion, representing 5.5 percent of economic output. The budget crunch comes after Mr. Macron spent heavily to support workers and businesses during pandemic lockdowns. His government also provided subsidies to help households cope with a jump in inflation after Russia’s invasion of Ukraine, which sent energy prices soaring.President Emmanuel Macron has called for snap parliamentary elections, throwing French politics into disarray.Hannah Mckay/ReutersWe are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

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      How California, Once Flush, Got Stuck With a Budget Shortfall

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      Lawmakers passed a preliminary budget that technically meets a legal deadline while they work out final details. State finances have fluctuated wildly in recent years.California’s state budget dwarfs the gross domestic products of some countries, supporting the nation’s most populous state and the world’s fifth-largest economy. When Golden State finances swing, there is an impact — and they can swing wildly. Two years ago, the state was projecting a record surplus; now, state lawmakers are confronting tens of billions of dollars in red ink.State law requires legislators to pass a balanced budget by June 15 each year or lose their pay and expense money. It’s typically a fraught process. This year’s negotiations have largely centered on how much social spending the state will cut and whether the state should postpone an increase in the minimum wage that was signed into law last year for nearly all health workers, many of whom work at state hospitals and clinics or at facilities whose patients are reimbursed through California’s version of Medicaid.On Thursday, the Legislature passed place-holder legislation that allows lawmakers to technically meet the deadline while talks with Gov. Gavin Newsom continue on some of the remaining sticking points. A final deal, to be written into a few supplemental bills, is expected in a few days. The budget takes effect on July 1.Why do California’s finances jump around so much?Volatility is a natural byproduct of California’s system of taxation. Designed to be progressive and fairer to low-income taxpayers, it relies heavily on taxes on personal income and capital gains.When rich taxpayers have a good year, the state government reaps a windfall. But when initial public offerings slump or the stock market reverses, revenue tanks. And the state has limited flexibility in raising revenue in times of shortfall because, in most cases, the law requires a two-thirds supermajority in the Legislature to pass a tax increase.What has the state done to manage the volatility of its finances?Californians have chipped away for some time at the state’s budget dysfunction, which used to be much worse. In 2004, voters passed a constitutional amendment requiring the state to reserve 3 percent of general fund revenue every year, regardless of the state’s economic performance. But the reserve fund barely got off the ground before the 2008 financial collapse slammed the state.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

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      In Wake of Election Defeat, Germany’s Olaf Scholz Will Slog On

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      Chancellor Olaf Scholz and his governing coalition emerged battered from the vote for the European Parliament. But a snap election seems unlikely.Chancellor Olaf Scholz of Germany heads to the Group of 7 summit meeting in Italy on Thursday as a diminished leader after Sunday’s battering in elections for the European Parliament.All three of the parties in his coalition government earned fewer votes than the conservative opposition — combined. The far-right Alternative for Germany, or AfD, showed itself to be the country’s second-most popular party.While an even worse defeat in France for President Emmanuel Macron at the hands of the far right prompted him to call fresh elections for the National Assembly, no such outcome is expected in Germany, where the results reverberate differently.Here’s a look at why.Snap Elections Are RareSome opposition leaders said the results showed such a lack of confidence in the chancellor and his coalition that he, too, should call new federal elections.The government replied definitively: no.The reason could be as simple as the difference between the French and German systems. Whereas President Macron could call a new election for the French Parliament, a new vote in Germany can only happen at the end of a complicated procedure triggered by a parliamentary majority vote of no confidence in the chancellor. That makes snap elections extremely rare in Germany — happening only three times in the 75-year history of the Federal Republic.While the three parties in the coalition government took a beating on the E.U. level, at home they still have a majority of seats in the German Parliament. As unpopular as the coalition is, then, it is most likely to slog on, and hope that it can turn things around before the next regular federal election in 2025.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

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      In Late-Stage Budget Talks, Hochul Wins Concessions From N.Y. Lawmakers

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      Gov. Kathy Hochul used the $237 billion budget to wedge in contentious issues like extending Mayor Eric Adams’s control over New York City schools.In the days approaching April 1, the corridors and backrooms of the New York State Capitol tend to be filled with tension and chaos, as the governor, lawmakers and staff scramble to meet the deadline to pass a state budget that is as much a policy blueprint as it is a spending plan.This year was different.Budget talks dragged out almost three weeks past the April 1 deadline, leading some to wonder whether Gov. Kathy Hochul, a Democrat in her first full term, had lost control of the process.But by the time the budget was officially passed by the Legislature on Saturday, it was clear that Ms. Hochul had achieved her goal: a final $237 billion budget that included a checklist of her priorities. They included new resources to fight retail crime, a statewide artificial intelligence consortium, and a landmark housing deal aimed at bolstering residential construction — all without raising taxes on the wealthy.The governor’s long-game approach seemed to reflect lessons she has learned in reaching the three budget agreements since she took office in 2021: that a governor can lead while honoring the spirit of collaboration and that a good deal is better than a fast one.After Ms. Hochul announced on Monday that leaders had reached agreement on a budget framework, she continued to negotiate over the next few days, most notably persuading state lawmakers to use the budget to extend mayoral control of New York City schools for two more years.The final budget contains $2.4 billion to support migrant services in New York City, an increase of half a billion dollars over last year’s funding that should cover case management, medical expenses and legal resources. It also includes a substantial new tax break for developers, expanded tenant protections and new enforcement powers for localities to crack down on unlicensed cannabis shops.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

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      Audit Questions Purchase of $19,000 Lectern by Arkansas Governor’s Office

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      The legislative audit found several ways that the heavily scrutinized purchase potentially violated state law. Gov. Sarah Huckabee Sanders criticized the findings.Legislative auditors in Arkansas found that the purchase last year of a $19,000 lectern by Gov. Sarah Huckabee Sanders’s office potentially violated state laws, according to a report released on Monday.But the findings may be moot after the state attorney general, Tim Griffin, said last week that state purchasing laws do not apply to the governor or other executive branch officials.Ms. Sanders, a Republican, faced sharp scrutiny for the purchase, even from members of her own party. But on Monday, she appeared eager to fling away those attacks, posting a video montage seemingly mocking the lectern controversy on social media, complete with hype music and dramatic edits.Her office described the report as “deeply flawed” and said that “no laws were broken.”The potential violations found by the audit include shredding a document that should have been preserved and mishandling the purchase process. The legislative auditors said that their report would be forwarded to the Sixth Judicial District prosecuting attorney and to Mr. Griffin’s office.State lawmakers approved the audit last year after it was revealed that the governor’s office had purchased the lectern and an accompanying traveling case in June, using a state-issued credit card to pay $19,029.25 to Beckett Events L.L.C., an event management company with ties to Ms. Sanders.Matthew Campbell, a lawyer and blogger who had filed a broad public records request, was the first to obtain the information.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More