How to Budget

Getting rich on small potatoes

Watch your pennies.  It’s not terribly difficult to do, and the pennies, the little things, are usually what add up to big savings over time. I was speaking with a client recently who was introduced to the concept of tracking his daily expenditures. This task of “watching the pennies,” really had him questioning things. “What’s the big deal?” he asked...

Tax refund madness

The urge is typical. You’ve completed your tax return, happily confirming your hope the government owes you a refund. Before you’ve even received your refund in that recognizable brown envelope, it’s likely you’ve already earmarked that money for goodies you want, but haven’t had the chunk of cash to pay for. In the back of your mind though, you know...

Two common budgeting hurdles (and how to clear them)

There are two, very common, hurdles people face when attempting to budget. Unfortunately, these hurdles often go unacknowledged, setting a lot of people up for failure, almost before they even get started. Quite simply, there are two hurdles or speed bumps people encounter with the process: The first challenge is the not-so-simple task of getting started. Unlike starting a diet (which...

Needs and Wants: The Difference

For some people, it can be incredibly difficult to discern the difference between what they want and what they need. Here is just one practical example: Let’s say someone goes to a mall to replace a broken dish. Walking through the mall, they see a shirt in the window that would go perfectly with one of their outfits. (People generally...

Unexpected Expenses, Your Budget’s Worst Nightmare

Unexpected expenses are, hands down, usually the biggest budget breakers out there. (An unexpected expense is anything that you did not foresee or plan for in your budget.) A clinical look at all cash flow for three full months, including all income and expenses, is one of the first exercises we conduct when working with new clients. During this time,...

Emotion: Where Budgeting Misses the Point

A lot of people are under the impression that having a budget, or being able to create a budget, is all they need in order to get ahead of their finances. In reality, this is not the case for most of us. People fail with their finances because money is far more emotional than any budget might suggest. It’s one...