Spending choices

Not all expenses are necessary

Seeing your monthly expenses will help you decide  whether to save more toward your future goals. It may help to view spending based on needs, wants and wishes.

• Needs: Food, housing, childcare, utilities, transportation
• Wants: Entertainment, vacations, clothing, club memberships
• Wishes: Charitable giving, second home, gifts, leaving money to your loved ones

Set your starting point

Balancing immediate versus delayed gratification often makes the difference between reaching your long-term goals or falling short. Investing what you don't spend allows your money to work for you, so it's critical to get your spending right.

Ask yourself, "How much money do I need now, how much will I need later, and how much will I need in the future?" A Financial Advisor can help you quantify your current and future expenses.

Once you know how much you need and where your money is going, follow the "pay yourself first" rule of savings – automatically invest a specific amount from your budget for the future,  such as in a 401(k) or other investment account.

How to make a budget

Add up your income and spending. Income includes wages, pensions, Social Security, payouts from a trust, rent you may be collecting, divorce settlements, or investment income such as stock dividends. Your credit, debit and bank statements will be helpful in showing you where your money is going.

Use this simple worksheet to take the first steps toward creating a budget, or updating your current budget.