Services > Budget Planning

Budget Planning

Financial planners, investment advisors and tax specialists say establishing a sound strategy that accounts for your everyday spending, credit and tax management practices is a cornerstone for building wealth and should keep you from sabotaging your investments.

Often, people will visit a planner or accountant looking for advice and say they have no money at all to revest, But a careful examination of where your money is really going--from that weekly excursion to the record shop to buy $100 worth of the latest CDs to that tax deduction you aren't taking--can be an eye-opening first step toward establishing a realistic spending plan.

The first step to creating a budget is simple: put down on paper what you're spending your money on. That sounds easy, but it takes discipline and honesty--in other words, don't omit anything, no matter how small. Track your spending for at least 30 days to six months to get true handle on where your hard-earned dollars are going.

When you will see all your expenditures, you will be able to figure out just how much discretionary income you really have. And some expenses will fall into the "Do I really need this?" like that cup of café au lait that you buy every morning.

Once you see what you're spending in black and white, you can figure out what you can cut. Also eliminating wasteful spending is important. For example are you spending more than $100 every week at your dry cleaners? Find one that gives you a discount for regular service. Are you taking videos back to the store a day or two late? Get them back on time and stop paying late fees; it's money down the drain.