Slapping together any old budget does not guarantee success at saving.  In order for a budget to be effective, it needs to be thought out and actually fit with your personal needs and spending patterns. A great budget will always include the following;

• A clear awareness of exactly how much you’re spending and where. Start tracking every expenditure, even if it’s just a dollar or two at a time. Daily spending adds up faster than you may realize.
• Budget for emergencies. Car repairs, medical bills, and appliances that suddenly break down can put a severe crimp in anyone’s budget.  Make sure you have money set aside for events such as these.
• Make your income projections as accurate as possible. A budget won’t be very helpful if you overestimate your income and fall short in the end.
• There are many types of financial planning software on the market these days, so use one to help you with your budgeting process.
• Get the entire family involved.  Give them each a role to play in the budgeting process and make them responsible for something age appropriate.
• Understand the vital difference between needs and wants, and budget accordingly. Needs include things like groceries and housing. Wants include things like a new car stereo and a 52-inch television.
• Don’t beat yourself up if you fall off the budget bandwagon and splurge occasionally guilt may lead to additional expenditures! By the same token, reward yourself for a job well done.
• Avoid credit cards. Studies show that on average, due to interest and late charges, consumers end up paying 30% more for a product than they would have if they used cash.
• If you do have credit card debt, avoid late payments and going over your limit.  Ever-increasing fees for these infractions can really add up.
• Your attitude is vital. You must be committed to your budget and want to make it work.

If you need help with a budget, please feel free to call me (302) 703-0727or attend one of our free budgeting seminars. Please go to our seminars page by clicking on the link at the top of the page for more information on our seminars.

If you would like to apply for a Mortgage Loan, you can APPLY ONLINE HERE, you can call John Thomas at 302-703-0727.

John R. Thomas – NMLS 38783

Certified Mortgage Planner – Primary Residential Mortgage, Inc.

302-703-0727 DE Office / 610-906-3109 PA Office / 410-412-3319 MD Office