Want to make sure you're set up to live the life you really want to live? The B-word will get you there. Budgeting.
You hear it ad nauseum, but it's really the most basic, basic way to reach your financial goals in life. You have to know how much money's coming in, how much is going out , what you're able to save and your short-term and long-term goals for the money you put aside.
So here's the Cliff Notes version of NBC10's Money School: Investing 101. It was put on by PICPA, the Pennsylvania Institute of Certified Public Accountants.
Size Doesn't Matter as Much as Discipline
How much you earn has almost no bearing on whether or not you will build wealth and meet your financial goals. The problem is not how much we MAKE, it’s how much we SPEND.
Budgeting is the Basic Foundation
You need a monthly budget that's realistic. That means, expect the unexpected. You have to know how much money comes in every month, how much really has to go back out and what you can put aside for life's goals and life's unexpected emergencies.
Put it All on Automatic Pilot
Your debt payments and your savings. Here's your motto: Set it & Forget it! Set up your bill paying and your savings so that they happen automatically each month. Use payroll deductions to checking and savings, online banking for automatic bill paying and automatic transfers for savings.