Issue 25.16
As we head into July, there’s no better time to evaluate your financial goals. Poor financial decisions can cause anxiety, so how can you reduce that stress?
Something you can do today is create and live by a budget. So whether your finances are on track, starting to teeter, or stumbling blindly in the dark, here are three tips to improve your budget:
Back to Basics
First, put together a plan. Pull out your calculator, collect your monthly statements and let’s build a budget.
Begin by listing the various sources and amounts of income that you take home each month. The goal is to get an accurate picture of the money coming in each month.
Next, plan on saving for an emergency fund, putting at least 3-12 months’ bills into a savings account for immediate access. Once you’ve paid yourself, make a record of your outgoing expenses. This includes your mortgage, utilities, gas, food, insurance, debt and unique expenses. At the end, factor in those numbers that may vary month-to-month. Once they’re all measured, you have your budget.
As a next step, carry a notebook and take note of every purchase you make. Even if it’s a dollar for a soda, write it down. When you’re finished, you’ll notice the small expenses that add up. Adjust your budget accordingly.
Take a Look in the Mirror
Every person’s situation and costs are different. Our needs and priorities are different. That’s why it’s important to prioritize your expenses.
The more you spend on one category, the less you have to spend on another. Whatever your priorities are, make sure they align with your budget. Not everything can be a priority.
We’re Here for You!
Budgeting can be a challenge but we at Eric Scott Financial are happy to help. Please call our office at (435)773-9444 to schedule a time to visit with one of our financial guides.