A budget is simply a road map that helps give you direction as to how you want to spend your money each month. It is an important part of achieving your goals, whatever they may be.
We are often asked these questions by our clients:
- Will I have enough income in retirement?
- Can I afford to go on my bucket list vacation?
- How much can I save for my child’s college education?
- How much can I spend on my kitchen remodel?
- How will I survive financially after my divorce, or loss of my spouse?
Many factors go into answering the above questions, but the foundation is always based on your budget. What do you spend each month? How much money comes in each month? After you figure out these two numbers, you can decide if how you are currently spending your money is how you really want to spend your money. (Don’t forget to budget in things you may not pay monthly, like car insurance, property taxes, etc.). Are you surprised with how much money you spend on certain items each month? Are your spending and saving habits helping you achieve your goals?
As you reflect on where you’d like to spend your money, and think realistically about your budget, it will take several months and several iterations to find out what fits your lifestyle and future goals. Just keep practicing and remember that succeeding on your budget will help you achieve your goals.
Our simple budget worksheet and a helpful instructional video are available for you to print and use at home.