Budgeting for Your Future

When it comes to your finances, there is only one way to make sure that you are ahead of the curve every month and that is to have a budget. Without a budget, you are “flying blind” and hoping for the best.

Research shows be that fewer Americans are using a household budget than before, while more people believe that they need to using one. Younger folks between the ages of 23 and 38 years old tend to budget much more easily than older Americans.

Budgeting isn’t rocket science, it actually is rather simple, and once you get into the habit, it makes life a lot simpler and easier. Even though this is true, a measly 41 perceent of us in the United States have a budget and stick to it.

Getting a budget in place is simple:

• List all your monthly expenses
• Add your annual payments required (sometimes you have payments that are a once a year expense)
• Work out how much money you have every month coming in plus any bonuses or annual windfalls or dividends
• Work out if you have to cut costs anywhere and the difference between outgoing funds and incoming money
• Work out how much you can save every month

Even for those American households currently living paycheck to paycheck, a budget is essential. It might be even more important, as budgeting allows you to get a clear picture of finances, so that you can live within your means and plan to do better over time.

As the saying goes, a penny saved is a penny earned. The younger generation in America today are also at risk. 24 percent ol Millennials demonstrate just basic financial literacy, but that is still enough to understand how to budget. It really is basic math. How much do you have coming in versus how much you need to spend or want to spend? If you don’t have it, don’t spend it. Or find a cheaper way to do it or start saving for it.

 

IMPORTANT DISCLOSURES

Material contained in this article is provided for information purposes only and is not intended to be used in connection with the evaluation of any investments offered by David Lerner Associates, Inc. This material does not constitute an offer or recommendation to buy or sell securities and should not be considered in connection with the purchase or sale of securities.

To the extent that this material concerns tax matters, it is not intended or written to be used, and cannot be used, by a taxpayer for the purpose of avoiding penalties that may be imposed by law. 

Each taxpayer should seek independent advice from a tax professional based on his or her individual circumstances.

These materials are provided for general information and educational purposes based upon publicly available information from sources believed to be reliable– we cannot assure the accuracy or completeness of these materials. The information in these materials may change at any time and without notice.

David Lerner Associates does not provide tax or legal advice. The information presented here is not specific to any individual's personal circumstances. Member FINRA & SIPC