Sat | Dec 3, 2016

Create and sticking to your New Year Budget

Published:Saturday | December 27, 2014 | 11:36 PM

Do you have being more financially responsible on your New Year's Resolution list? Have you considered making a yearly financial budget? Don't let the fear of change and the habit of procrastination win you over - create an annual budget for the New Year and stick to it.

A budget enables you to avoid unnecessary spending. Outlook opted to get financial advice from professionals Financial Adviser at the Sagicor Group Hugh Stone, on how to create an annual budget and sticking to it.

Focus on your needs instead of your want

Stone share some things you need to consider when organising your money needs for the year and sticking to it.

- Saving is very important - you can't budget and not save - This is used as a cushion for unexpected expenses

- Separate and know how much your children expenses are monthly, and avoid getting carried away when they want to do unnecessary spending

- Stone strongly encourages the use of credit cards - so on a monthly basis you will have one deduction from your salary instead of multiple

- Stone said that loans can be good as well as bad, so avoid using a loan to pay a loan - you might attract more expenses

- Budget for emergencies because they are unpredictable

The first step in planning for greater success is to find out how much income you need to cover your requirements. Use the form below to compute your budget for next year including a monthly, and total annual cost for each that suits you.

PUT IN A TABLE

Fixed Expenses

Rent or Morgage expenses

Utilities - gas, heater, light, telephone, water

Homeowners insurance

Car Insurance

Federal and state tax

Local taxes

Other

Living expense

Food

Clothing

Laundry

Entertainment

Car Expenses

Medical- doctor, dentist, drugs

Other

Business Expenses

tuition, association dues, services, periodicals

computer, stationery, postage,

Business travel, car expenses

Business entertainment

Other

Saving and Accumulation

Life Insurance

Savings Account

Debt reduction (other than mortgage)

Investments

Slush fund

Other

Miscellaneous

Donations - religious, charitable

Recreation

Club dues

Gifts

Vacation

Medical

A budget enables you to avoid unnecessary spending. Using money wisely becomes easier when you focus and stick to your budget to the 'T'.

cathy.risden@gleanerjm.com