PBA Tip of the Day brought to you by Doug DeMuth with Edward Jones (623) 551-0523.
The way some people think they spend money and the way they actually spend it can be worlds apart. That’s why we think it’s important to have a clear (and realistic) understanding of exactly where your money goes each month.
Even though the term “budget” may bring to mind images of clipping coupons or eating ramen noodles, it doesn’t have to be a painful experience. Budgeting can simply help you get a handle on how you spend money each month. And finding that little “extra” can mean a lot as you move toward reaching your long-term financial goals, like retirement.
It may be hard to figure out where to start, so below are some categories to make sure you include in your budget.
Your income
Dividends and interest from investments
Social Security
Other types of income
Your living expenses
Mortgage or rent payment
Transportation costs
Child care
Insurance premiums
Home repairs
Don’t forget to factor in the money you use to have fun– dining out, travel and gifts for family and friends.
Debts you may owe
Credit cards
Car payments
Student loans
Home equity or other personal loans
Taxes & other financial commitments
Federal and state/local income taxes
Your recurring contributions to retirement plans or education savings plans.
For more help with family budgeting, give Doug a call today!