Budgeting

Most financial planners will say that the most important part of any financial plan is the budget. If a client can stick to their budget, they put themselves in a position to reach any financial goal.
As part of the Financial Planning Module, we will take a detailed look at your current budget and monitor the performance.

Above all else, the most important factor in budgeting is attitude. Simply saving money for a month or two will not be effective. Spending within a budget means making a lifestyle change. You must set goals, then work to reach them. Only when you decide for yourself that you will take the budget seriously, will you make your budget a success.


The Top 5 Ways To Improve A Budget

1. Utilities- Keep your use of heat and air conditioning to a minimum. Downsize phone lines and services. If your cell-phone is not absolutely necessary, get rid of it.

2. Transportation- Auto expenses can consume a large part of your income. Try keeping your car for an extra year or two. Find the discount air fares. Walk or take public transportation when you can.

3. Credit- Try to keep the balances on your credit cards to an absolute minimum. The interest that you pay on each card can devastate your budget.

4. Insurance- Find the lowest term life insurance rates and continually watch for the best price. Raise the deductibles on your auto and homeowner’s policies. If you car is paid for, drop collision insurance. Be sure to keep your disability insurance intact.

5. Grocery Items- Keep foods that you really like, don’t cut anything there. But what about more common items like bottled water? Can you live with the $1.99 bottle vs. the $3.99 bottle? Can you prepare something for less money than purchasing prepared foods?

Inevitably you will have expenses that were not included in your budget. But if you adhere to your spending plan over the long-term, you will save large amounts of money. By sticking to your plan and keeping a good attitude about it, your budget will be a healthy and effective tool.