How to Know if Your Budget is Reasonable

Planning for your future starts with each paycheck that you receive. As you decide how to spend or invest your money wisely, you create not just the present but also your own future. And so, we always remind our clients that establishing a reasonable budget now will contribute to a happy retirement later. But what is considered reasonable and how do you know your budgeting skills are up to par?

Just ask yourself if your budget meets these standards:

• Before you ever receive your paycheck, part of it is automatically diverted into retirement savings
• When you receive a raise, bonus, or another windfall, you adjust your automatic savings plan upward before spending the rest
• Each month, you stash a bit of money in a savings account to cover emergencies
• You pay more than the minimum payments toward your credit card bills, or you have paid off all of your credit cards
• You can cover all of your monthly expenses while also saving for the future
• You tend to save up for large purchases rather than going into debt for items like electronics, appliances, new furniture, or a vacation
• You and your spouse agree on spending limits for larger purchases or impulse purchases
• You don’t feel guilty when spending money
• You don’t feel stressed about your financial situation

If you can say that your budget meets these standards, then congratulations! You’ve mastered the art of budgeting. But if not, don’t despair. Anyone can learn better budgeting skills at any time, and begin the process of preparing better for the future.?

And if you need help deciding how much to save for retirement each pay period, or have any other questions about financial planning, give us a call. We can help you make the decisions now that lead to a more stable retirement someday.?