How To Set A Budget For Yourself

American Investment Planners LLC

500 North Broadway, Suite 260, Jericho, NY 11753

(516) 932-5130 / (866) 932-5130

In order to stay on top of your money and avoid falling into financial turmoil, one of the most important things to do is set a budget for yourself. By having some sort of guide to follow, you can better prepare yourself for a variety of financial situations and ultimately prevent yourself from spending more than you can afford.

That all being said, however, we understand that creating a budget for the first time can be rather overwhelming - there are so many things to consider! That's why we've put together the following list of tips to help you do so:

Know your income: The first step in creating a budget is to know your income. Without having a clear picture of how much money you have coming in each month, it can be extremely difficult to fall into good spending habits. Therefore, you'll need to start by outlining the income you'll have so that you know how much you have to work with. Note: don't forget to subtract any deductions from your paycheck, such as those that come from taxes and your retirement accounts.

Outline expenses: Once you know how much money you have, your next step should be to outline each of your monthly expenses - fixed and variable. From mortgages to car payments, cell phone bills, groceries, gas, even your weekly spending money, you must include it all so that you can figure out the most strategic way to divide your money. Since fixed expenses stay the same each month, it's a good idea to list those out first so that you know how much you'll have left over to dedicate to those that vary.

Determine goals: Last but not least, once you determine your monthly expenses, think about what you'd like to achieve financially in both the short and long terms. For example, would you like to treat your family to a vacation next summer? Or, maybe you'd like to pay off credit card debt in just a few months time. Regardless of what your goals are, you should add them as a category of their own on your expense list so that you can determine the best way to achieve them.

When all is said and done and your budget is complete, don't forget to check in regularly to ensure that you are staying on track. This way, come the end of the month, you can rest assured knowing that you have enough to cover all costs comfortably!

At American Investment Planners LLC, our goal is to help our clients figure out strategies that lead them towards financial success that they can pass on for generations. Our team of financial planners specialize in various financial realms and work closely with each client on an individual basis to determine the best solutions for their needs. To learn more about the services we offer, please visit www.americaninvestmentplanners.com or give us a call at (516) 932-5130.