HOW DO I BEGIN TO BUDGET?
The secret to planning a budget that works is—starting one and sticking to it. By looking at how you make and spend money along with organizing your finances, you’ll be able to better manage your time, your money, and meet your financial goals. The following steps should be considered when creating a budget.
Assess your current situation.
Before you can attain a financial goal, you need to know where you stand financially today. Examine your current income by looking at the following potential sources of income.
- Salary
- Bonus
- 401(k)s
- Stocks, bonds, and mutual funds
- Cash value of life insurance
- Home
- Cars
Set careful goals.
When dreaming about financial goals, the sky is the limit. However, when realistically setting goals, it’s important to decide which ones are most important to you. By establishing a focal point, you are more likely to achieve your goals.
As you evaluate your wants and dreams, be prepared for potential conflicts. Even the most notable goals can conflict with one another. As you try to decide which goal is a higher priority, you may want to think about each goal’s ultimate benefit, or the potential downside of not achieving one of the goals.
Only you know what is important to your future. Whether it’s saving for college, saving for retirement, or getting out of debt, Wachovia has the experience and the services to help you. We encourage you to contact a Financial Advisor who can help you get started.
Locate a Financial Advisor at a Branch Near You
Assess spending.
The next step is to look at your expenses. Gather your banking statements, checkbooks, and any credit card statements for the past three months. Write down your monthly expenses—be sure to include vending machine snacks, tips for meals, and even change for parking meters. You’ll probably be surprised at how much you’re spending and where you’re spending those dollars. But once you’ve got a handle on your total expenditures, you’ll be able to determine your potential savings at the end of each month.
Calculator: How much am I spending?
Identify areas of saving.
Now that you know how much you’re spending, identify expenses you can trim. Target those daily expenses like food and small purchases that really add up.
- Food Tips
Try taking your lunch two or three days a week or cut back on your gourmet coffee breaks. You can probably save an additional $20 to $40 a week just by cutting convenience spending. But don’t be too hard on yourself or you won’t stick to it.
Calculator: What's it worth to reduce my spending?
- Credit Tips
If it’s too easy to reach for your card when you’re out—start leaving your card at home. That shirt you bought on sale might cost you twice as much if you’re not paying off your credit card bill at the end of each month. If you like the convenience of carrying a credit card, then a Check Card is a great solution. Purchases made with it are automatically deducted from your checking account.
Managing Debt and Credit
Calculator: Should I pay off debt or invest in savings?
Calculator: Should I consolidate my debts?
Build your budget.
Once you've completed your budget preparation, it’s time to actually build your budget. You have many options for tracking income, expenses, and savings. Your method could be as basic as a paper spreadsheet or as detailed as a personal finance software package. Consider using a built-in budget-making tool to create your budget for you.
Manage your budget.
Get your budget up and running. Find a system that allows you to track and plan your finances. With Wachovia’s Online Banking you can view your account anytime you want. Add Online BillPay and you can pay all of your bills, even the babysitter, whenever you want and avoid the hassles of writing checks and making trips to the post office.
Command Asset Program can also help you track your expenses whenever you write a check. You can monitor your expenditures by using pre-set and customized categories that appear on your statement.
Look into money management programs like Quicken® and Microsoft Money®, that will help you maintain your budget and access online account data. Streamlining your budget and your bills can free up your time and your money.
Wachovia Securities Asset Management Accounts
Wachovia Online Banking
Article: Put Savings (and Yourself) First With a Budget
Update your budget.
At the end of the first month on your budget, reassess to determine if your plan is working. Were you able to increase your end of the month savings and control your expenses? Don’t try to cut out all spending at one time. Start with a few targeted areas and build on them each month. By continuing to take an honest look at your finances, you’ll be able to spot where your money is leaking and slow it down
Wachovia Savings Products
Wachovia Checking Products
Email This Page
Printer Friendly Version
