How to Create a Solid Budget

We wouldn’t be surprised if you’ve lost count of how many people have told you to start

budgeting in an effort to improve your finances. But we’re also well-aware that budgeting

is often easier said than done. Where do you start? How do you keep track of

everything? Before you start panicking, let us help with some tips for how to create a

solid budget.

Collect the Necessary Tools

You can decide whether you want to keep track of your spending digitally or on paper,

but either way, you need to set yourself up for success. Get a specific notebook or

phone app to track everything you spend and make adjustments accordingly to save

money.

Calculate Your Expenses

We’re not talking about only figuring out what you’re paying for rent and loans. Calculate

how much you’re paying for groceries, utilities, dinner outing... everything. If you spend

money on it, put it into the equation. Pro Tip: Since some expenses, such as insurance,

are not always paid monthly, try to figure out your expenses over a six-month period.

Figure Out Your Income

While this may seem as simple as checking your pay stubs, include any other income you

may get from cash gifts, alimony, child support, interest dividends, and rental income.

Even if you have regular garage sales and make some money from that, include it in

your income.

Set Savings and Debt Payoff Goals

Set specific goals for how much you want to put into your savings account and how

much of your debt you want to pay off. If you subtract your expenses from your income

and see you’re making more than you spend, great! If not, you need to start making

some cuts in your spending. For example, let’s say you’re spending $10 a week buying

lunch. That adds up to over $500 a year, which is a good chunk of change.

Be Realistic

Don’t try to cut all your spending right away. Set realistic time frames in which you’re

going improve your savings and spending. Trust us, it makes things so much easier.

At American Investment Planners LLC, we make it a priority to help you prepare for the

best financial future possible. From tax management to retirement plans, we’re here to

help with anything you may need. To schedule an appointment with one of our advisors,

please call (516) 932-5130 or email info@americaninvestmentplanners.com.