Learning to Save Money Middletown NY

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Learning to save is something we should all learn, but it isn't as simple as one would think. There are several prerequisites before you even think about investing in the stock market, retirement plans, or anything else above and beyond what you use for paying bills. This article will explain the steps you should take to make sure you are secure enough to invest for other goals beyond basic living expenses as well as trying to maximize your cash flow. This will be very in-depth and should answer any questions you may have. As a former Financial Advisor, these are all the things I did for clients to help them get started. There will be some simple math, but I will try my best to keep everything as simple as possible and explain it in detail. A calculator to do simple addition and multiplication would be helpful.

 

1. Budget: First and foremost, you need to have a budget. I know this is something that doesn't seem relatively difficult, but many people skip this step entirely. A budget is the basis for anyone who wants to invest. It helps give you a scope of where your money is going and what you may have left to invest later.
   
   Keep in mind that the matter at hand is your gross income -- what you make before you save taxes. Your gross income will be listed on your check before they show the deductions for taxes, medical, insurance, etc. Your net income is what you take home after these expenses. I want you to look at things in this way to develop an idea of where ALL of your money is going. I will provide some tips about this later, but let's start at the beginning.
   
   
   • Expenses Worksheet: When conceiving a budget you must first know your expenses and what you spend money on regularly for leisure. I have included a relatively simple worksheet that you can use to track your monthly expenses so that you will be able to determine average spending every month.
     
     
     • This Expense Worksheet is relatively self explanatory and is broken down into weekly increments. If you have never tracked your expenses before, you will want to start with this worksheet. Keep it with you; make sure to update it when you pay a bill, make a purchase, or spend money on a service. You need to do this step to provide yourself with a realistic expense list. I recommend that you add Taxes, all insurance premiums, and any other things that are deducted from your check in the Other section. Those are all expenses that you pay too, but unless you look at your paycheck, you really won't think of them as expenses. We are trying to maximize your total Net Income here, so we need to start at the top.
       
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Author: Brandon Masar