Budgeting & Beyond

Budgeting & Beyond

Ready to get serious about budgeting?

Budgeting is an essential practice for everyone, regardless of income, to ensure financial stability and success. It’s about managing your cash flow, saving for the future, and making sure your spending aligns with your financial goals. Whether you’re new to budgeting or refining your approach, these four tips can help you get started and set yourself up for financial success.

1. Get a Handle on Cash Flow The process of budgeting and managing cash flow can begin at any age. While many people start focusing on it in their peak earning years (ages 40-60), it’s never too late to begin. Baby boomers and Gen Xers, in particular, often find themselves carrying higher credit card debt during this time, so learning to budget effectively is crucial. To get started, consider using a cash flow analysis worksheet, which you can get for free from CTS Financial Group.

2. Think in Terms of “Buckets” When budgeting, consider dividing your income into “buckets.” Start with the 50/30/20 rule, which suggests allocating:

  • 50% for fixed expenses (mortgage, bills, etc.),
  • 30% for discretionary spending (dining out, entertainment, etc.),
  • 20% for savings (emergency fund, retirement savings, etc.). This approach helps you clearly define your spending and savings priorities.

3. Find the Devil in the Details While fixed expenses are straightforward (mortgages, utilities), there can be some gray areas. Ask yourself whether certain monthly costs are needs or wants. For example, a Netflix subscription or a gym membership might feel like fixed costs, but since they’re not basic needs, they could fall under discretionary spending. Carefully review your expenses to determine which category each item belongs in.

4. Make Budgeting Part of the Big Picture Budgeting helps you manage day-to-day finances, but financial planning is about envisioning your long-term future. While a budget tracks income and expenses, financial planning helps you set goals for retirement, education, and other life milestones. A well-established budget is a crucial part of this process, but you also need a comprehensive strategy to secure your financial future.

By following these tips, you can gain control over your finances and make budgeting a tool for achieving your long-term goals. For a deeper dive into budgeting and financial planning, reach out to the team at CTS Financial Group.

Read this article first where we share 4 pro tips that we’ve learned over the years. http://bit.ly/budgetingandbeyond

Published On: April 11, 2019|Categories: Resource Center|Tags: , |

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This material is provided for informational purposes only. The information contained herein should not be construed as the provision of personalized investment advice. Information contained herein is subject to change without notice and should not be considered as a solicitation to buy or sell any security. Past performance is no guarantee of future results. Investing in the stock market involves the risk of loss, including loss of principal invested, and may not be suitable for all investors. This material contains certain forward-looking statements which indicate future possibilities. Actual results may differ materially from the expectations portrayed in such forward-looking statements. As such, there is no guarantee that any views and opinions expressed in this material will come to pass. Additionally, this material contains information derived from third party sources. Although we believe these sources to be reliable, we make no representations as to the accuracy of any information prepared by any unaffiliated third party incorporated herein, and take no responsibility therefore. All expressions of opinion reflect the judgment of the authors as of the date of publication and are subject to change without prior notice. For additional information about CTS Financial Planning, Inc. and the material posted on this website, please review our Important Disclosures.

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