Spring up your savings!

Hop back and look at your budget

Budgets… budgets… budgets… hate to see them come but loooove to see them go. But honestly, friends, they really should never go. I know we talk about budgets a lot here, but it’s because they’re so very important! Setting a budget is a key fundamental for really getting your finances in order and springing up your bank account.

Let’s define a budget so we can really break it down here. A budget is an estimation, or a guess, of one’s revenue and expenses for a specific time frame (normally a year). When you set a budget, you are taking into account your total income and your total expenses. The first step in setting a budget would be to determine your net income. Once you’ve completed that, you will then need to figure out your total expenses by tracking how much you are spending. I find it helpful to separate your ‘need’ expenses from your ‘want’ expenses. For example, under the ‘Need’ column, you would put the basic necessities you need to survive. Like rent/mortgage, groceries, work-related expenses, gas, and so on and so forth. And in the ‘Want’ column, you would put your extracurricular spending, like eating out, going to the movies, vacationing, or buying that $500 new golf club you want. After you’ve done this, you are able to compare the two numbers and can determine how much you should save based on your income and spending. Make sure you don’t get too frivolous and add a bunch of ‘want’ expenses to your budget. The point is to make it challenging and to really increase your savings. So try to cut out as much ‘want’ spending as possible. After you’ve completed these steps, that is the basis of your budget!

Now once you get this budget set, it’s very important you discipline yourself and stick to it. Don’t go hopping down the road and start spending a bunch of money on things you don’t need. Keep your end financial goal in mind, and work with your budget to achieve it! That’s the key, actually. Working WITH your budget, and not against it! And be honest with yourselves, friends. We aren’t perfect; we make mistakes. So if you mess up, don’t just give up. Pledge to yourself to really try harder and keep after it! If you stick with it, you’ll find you’ve sprung yourself right out of the financial hole you were in and on your way to financial freedom!!

Not the ’T’ word….

Yuuup, you guessed it… Taxes. With the tax filing deadline very near in sight (April 18th), it’s time to spring yourself out of procrastination and get your taxes handled. If you are expected to pay a tax bill, make sure your accounts are in order so you can fully cover that amount. If you are expecting a tax refund, start thinking now about what you are going to do with the influx of funds. My advice would be to tuck them away in savings or put them into an account that makes money for you, which brings us to our next topic….

Welcome to Wall Street

You’ve now got a little extra cash in your pocket (maybe from your tax refund in our last section), and you want to save the money rather than spend it but would like to be able to use that money to earn more money. Welcome to Wall Street! The stock market is a place where individuals can invest in companies and funds, giving them an opportunity to earn more money on their initial investment! It’s a grand and very complex space and can offer amazing returns on investments if utilized properly. The beauty of the stock market and investing is that your money is working for you. So if you are investing in companies that are flourishing, with the financials to back up their position and fortify their future growth, then you could potentially book some financial gain! When this happens, it is fun and exciting because your initial investment is growing without you having to do much of anything.

There is, however, a downside to this. The stock market can be very volatile, and world events and occurrences can shift the market. So while you have the potential to gain money, you also have the risk of losing it. This is why I would advise seeking professional help from a wealth management group so you have all the information you need to make wise and thoughtful investment choices. Our Wealth Management group here at Guaranty is PHENOMENAL. Elisa Luque and her team are some of the most knowledgeable and genuine professionals in the game and would love to talk to you about getting your money invested. They will get you hopping and skipping down the right track and will definitely help move you in the direction to really springing up your savings! You can check them out here or by going to https://www.gnty.com/wealth/our-people/. One last thing to remember - Investment products are not FDIC insured, are not bank guaranteed, and may lose value.

So I know Easter is only a few days away, and the Easter bunny will be hopping along any time now, so let’s get this jelly bean rolling and start sprucing up our finances.

Take your time setting a good but challenging budget, and get started on it as soon as possible. There is no time like the present, and the more you practice spending the right way, the better habits you will sustain over time. So that way, come next spring, you will have made bunny hops, leaps, and bounds, and your finances will be looking like a golden Easter egg!

Thank you for tuning in to my CASH the Mascot blog. I hope you found some of this information helpful and entertaining! Stay safe, everyone, and happy Easter!

¹This is for educational purposes only and is not intended as tax or legal advice.