What is a Budget and why is it important? 

A budget is a detailed account of your income and expenses. Making a budget will help you to organize your finances so that you can make better decisions about what to do with your money. Most people believe that their salary is what dictates financial stability, but without budgeting skills, poor spending habits carry over regardless of salary. Being organized is not necessarily easy, but the benefits you gain from planning and discipline can allow you to accomplish financial goals that are both short-term and long-term.  The areas that you should focus on Organizing:

• Financial Goals – What are you hoping to be able to do with your money (buy a car, own a house, save for retirement, Etc)
• Establish a Budget – How much money you have and how much can be spent on non-necessities.
• Your Spending – Where is your money going?
• Your Credit Rating
• Your Financial Records

Financial Goals – Amassing money does not happen overnight. It takes time, careful planning, and hard work.  There are three types of goals that people can set for themselves:

Short-term goals - These are goals you'll set and accomplish within one month to one year. Goals can include birthday gifts, holiday gifts, taking a family vacation, paying off a credit card or buying a new TV.

Mid-term goals - These are goals you'll set and accomplish within one to five years. Goals can include paying off all your credit cards, purchasing a new car, remodeling your kitchen or savin g for orthodontic work.

Long-term goals - These are goals you'll set that will take five years and longer to accomplish. For example buying a new house, saving for a child's education (college or trade school) or saving for retirement.

When setting your financial goals it is important that you remain reasonable. Do not increase your financial stress by setting unattainable goals.

Getting Organized Tips –

These tips should help you stay on top of your finances and important documents.

• Set aside time every week, two weeks, or month to file all your records into their designated file folder and place.
• Household documents should be retained for at least five years.
• Financial, Estate, and Family documents should be kept in a fire proof safe, and a copy of the documents should be stored at a safety deposit box at your local bank.
• Always shred any financial documents before you dispose of them; thi s includes statements, and credit card applications.
• Make sure a loved one has a combination to the fire-proof safe.