Budgets – got one?

No matter where you are in your life, whether you are going through a divorce or not, a budget matters.  Everything you do in finance, personal or business, comes down to a well planned budget.  The word “budget” is like the B-word no one wants to use but it’s an inevitable part of being a grown up.  It’s a word that evokes the feelings of despair, fear, stress, the thought of not getting out of bed…you get the idea.  I’m here to say the simple word is very simple in it’s task and it will replace those negative feelings with positive ones.  Think: control, empowerment, bliss, heel-clicking whoo hoo’s!  Yes, you can do it and I’m here to help you.

First, you will need to get your statements together (bank statements, credit card statements, lines of credit statements, etc.) that capture your monthly spending habits.   Then you will add up your expenditures from each statement for each category on my Budget Planner. When you add up all of your expenses, does it equal or exceed your income? If so, you need to whittle down your amounts in the variable expenses categories.  Don’t forget to include a savings category whether it’s for emergencies or saving for a special item (new tires, weekend getaway, spa treatment to de-stress post budget creation, etc.)  Now that you have your budget done, you can give yourself a pat on the back and click your heels.  See, you’ve had the power all along.

With your budget in hand, I suggest you revisit it monthly to make sure your spending is in check and tweak it if you forgot something.  It will take a few months of checking in with your budget for it to become a habit.  But staying on track is key to staying in control and not falling back into the negative thinking about the B-word.  If you’d like some help with all of this, please contact me via email.

Cheers and great job!

Holly Brady, CFP, CDFA