If you don’t feel as if you have a firm grip on your spending, you’re not alone. Studies have shown that up to 25% of adult consumers are “sometimes surprised” by their monthly expenses.
Regardless as to whether you’re trying to save money for a down payment on a home or you’d like to set aside cash for next year’s vacation, there are a few things you can do to gain control of your finances.
Set a budget and make a plan
If you want to reign in your spending, you need to understand where your cash is going. For example, if you learn that your habit of eating out at restaurants comprises a huge chunk of your disposable income, you can set spending caps or reduce the number of days you eat out.
You may also want to set monthly savings goals. Decide how much you want to set aside each month and strategize on how you can hit your target. Small changes to your daily routine (such as making coffee at home instead of buying daily cups at the local coffee shop, and/or canceling subscriptions for services you rarely use), can have a big impact.
Set up automatic transfers
Another way to ensure you stick to your plan involves setting up weekly, bi-weekly, or monthly transfers from your checking account to your savings account. If you want to save $500 per pay period, schedule the transfers to happen on the days you get paid.
Set long-term goals
Certified Public Accountants (CPAs) agree that establishing long-term goals (such as planning for retirement or setting up a fund for your child’s educational expenses), is a smart move. In addition to providing you with a map of how to allocate your income, a CPA can help you understand the tax benefits associated with establishing an IRA, 401K and/or other types of retirement savings accounts.
Experts you can trust
The experts at Hughes, Snell & Co., PA have years of experience in helping our clients with their accounting, estate, trust & planning, and tax preparation needs. In addition to providing our clients with accounting and advisory services, we provide financial consulting to clients interested in establishing long-term savings and retirement accounts.
For more information about our team, the services we provide, and how we can help you craft a plan to meet your monetary goals, call our office today to schedule a free, complimentary consultation.