The Importance of a Personal Budget

11/30/2021 - By Chris Stennett, CFP

Family roles have evolved over the years, but it’s still common to see households where one person manages the finances while the other partner is less hands-on. When circumstances change due to death or divorce, the remaining spouse or partner has a new world of responsibilities placed on them during a time of high emotional stress. The Saltmarsh Personal Budget worksheet can assist these individuals to begin to make sense of their financial picture, form good habits in managing their finances and identify areas of opportunity to improve their financial well-being.

The cornerstone of any successful financial plan is predicated upon a person’s ability to spend less money than they earn or have accumulated. This is what we refer to as “positive cash flow”. However, the challenge most individuals face is committing to a system or program that will help document and track household spending. There are a number of tools and resources available to assist with budgeting and monitoring spending. For those who do not wish to leverage these online resources, we created the Saltmarsh Personal Budget worksheet which contains many of the common incomes and expenses associated with our clients’ daily lives and serves to streamline the process of creating an initial budget.

Questions?

If you’re in a new role, or even if you just wish to get the new year started on the right financial foot, we encourage you to use the Personal Budget worksheet and contact our advisors to learn about other ways we can help you achieve your financial goals.

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About the Author | Chris Stennett, CFP®

Chris is a financial advisor and Certified Financial Planner® practitioner for Saltmarsh Financial Advisors, LLC, an affiliate of Saltmarsh, Cleaveland & Gund. He serves individuals and organizations as a comprehensive financial planner and coordinator of investment activities. His areas of expertise include investment management, income planning, tax and estate planning and risk management. Chris has over a decade of experience as a wealth manager working with teachers, federal and state employees, retired Armed Forces and private-sector employees.