The term “budget” can mean different things to different people. For those who are knowledgeable in finance, it means a carefully crafted tool that can help achieve short- and long-term financial objectives. To the less experienced or disciplined, it’s related to limitation and restriction in spending. Regardless of your financial intelligence, a budget can be established and help during times of economic hardship.
There are several styles of budgets that cater to investors who can’t stick to a traditional budget plan. With two separate checking accounts and a high-yield savings or money market account, investors can set aside savings on a regular basis and automatically funnel income into a long-term savings vehicle. Using the past three months of bank and financial statements to analyze expenses can help investors curb spending. Accountability from a partner in the budgeting process can also provide motivation. If you’re struggling with traditional budgeting, work with your Enso | Sonoma financial advisor to determine which alternative plan works for you.