The power of budgeting

A budget is a system that helps you decide how to spend and save your money and keep track of where it goes.

A budget can be as basic or as detailed as you want it to be. In today’s digital age, there are a number of websites and phone apps that can help you get started. When you create a budget, you create a roadmap for your financial future.

There are many advantages to budgeting:

  • It allows you to think critically about your needs versus your wants;
  • It can help you pay off debt;
  • It can help you save for both short-term and long-term goals, and
  • It reveals the areas of your life in which you overspend.

If you do not already have a budget, you can start by categorizing your spending. Here are a few examples of categories you can use:

  1. Savings (in retirement or other types of plans)
  2. Rent or mortgage payments
  3. Utilities
  4. Food
  5. Entertainment
  6. Personal care
  7. Gas and transportation
  8. Debt repayment

A financial advisor can help you review your spending habits and develop a budget that allows you to save money and spend on the things that matter.