Start The New Year With A New Budget


Outlining an annual budget can make a big difference in anyone’s financial life. Unfortunately, only a few folks take time to do it.

Rather than making haphazard payments and purchases that put you in debt by the end of the year, why not try planned spending for a change? Grab a pen and sit down at your desk or use your computer to set up an annual budget.

Begin with Budgeting 101                                                                     

Whether you create an accounting spreadsheet in Excel, rely on Word, or simply use pencil and paper, the first step is to estimate your income for the year. Then, jot down where all your money will go. Make a list of every penny you’ll need to pay over the course of 2020:

Record your income                                                                                                              

How much money do you expect to make this year? Record your projected earnings in the left-hand column. Subtract salary deductions, such as Social Security, Medicare, taxes, 401(k) or flexible spending accounts. List only your final take-home pay, or net income. If you have extra  financial resources (such  as interest, dividends, rental property, etc.) add your net profit to your total income if you plan to use it.

Estimate expenses for the whole year                                                                                              

Be sure to include every bill you’ll need to pay, plus everything else you plan to purchase or spend money on over the next 12 months:  




Rent / House Payment / Repairs / Home Insurance                                     $­­­­­­­­­________________

Utilities / Phone / Internet / Electronic Services / Repairs                         $­­­­­­­­­________________

Transportation / Car Payments / Insurance / Gas / Parking                      $­­­­­­­­­________________

Food / Groceries / Snacks / Restaurants / Coffee Shops                             $­­­­­­­­­________________

Personal Care / Health Insurance / Medical-Dental Expenses                  $­­­­­­­­­________________

Loans / Student Loans / Payments on Furniture, Upgrades, etc.             $­­­­­­­­­________________

Clothing / Shoes / Garment Cleaning and Repair                                        $­­­­­­­­­________________

Vacations / Entertainment / Subscriptions / Fees                                       $­­­­­­­­­________________


Total Net Income: $_________________                                                            


 Total Expenses:   $­­­­­­­­­________________


People who put together budgets usually estimate monthly income and expenses, but you’ll have a better overall picture of your finances if you start by planning an annual budget, then break it down by month.                                                                                                                                                                                                                                                                                        

Manage Your Money . . . financial facts for a brighter future provided by Advancd Asset Management LLC                           Follow our blog:                  Ronald Van Surksum, CFP                     4555 Wilson Ave SW – Suite 2               Grandville, MI 49418

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Advanced Asset Management
4555 Wilson Ave SW, Suite 2
Grandville, MI 49418

Phone: (616) 531-5220