Budget Planning

Once your Debt Analysis has been conducted, the next step is to plan your budget. 

Creating a budget may not seem like something that is on your top 10 things to do this week but it is vital in keeping your household expenses in check.  As you begin, you must realize how important it is to gather and organize as much information as possible, the more details for your budget planner or yourself to review, the better your results will be.  We estimate that the entire project can take about one hour upfront and then monthly maintenance to monitor your results.

At the Beginning...

1. Documentation Gathering:  This includes bank statements, investments accounts (all types), utility bills, receipts, credit card statements, auto loans, student loans and any other expense that you may have on a monthly basis.
2. Create a spreadsheet which will help you track your income and expenses
3. On the spreadsheet, document your gross and net income.  It is important for you to do your budget off the net income.  The net income is the amount you take home after deductions.
4. Complete our budget form (or create your own).
5. Review the results.  If you still have money then you are off to a good start.  The next step would be to seek the help of a financial planner to help you invest for your future or create a rainy day fund.   If you are showing a deficit monthly, take a look at where you can cut back.  The staff at Equity First can help you structure your budget and show you ways to eliminate your debt.

Understanding the Budget:

Step 1: The first place to start is at the beginning.  Make sure you realize how you got to where you are.  This is a basic statement and can apply to people that have over spent and need help to reduce their debt, or for those that have been a bit more conservative and need to know what's next.  By taking accountability for your actions, it helps to pave the future.  An open mind at this point is your best asset.

Step 2:  Follow the advice of your budget planner.  It may be hard, and you may not agree, but the results will show in time.  For example:  Last week you joined the local health facility, they assigned you a personal trainer, they recommend that you cut back on your intake of junk food.  A week later you go back, you have not lost weight, you are upset, but did you stay off the junk?  You may not like cutting things out that you enjoy.  In finances, it is no different.  We are here to teach you methods of holding on to as much of your money as possible, which may or may not mean taking things out of your activities that you enjoy. Think of us as your Personal Trainer for your finances, rather than for your fitness.

Step 3: Sticking to the plan is vital.  We shoot for a 20% or higher savings in at least 2-3 categories.  This can save you hundreds in your yearly budget per category!  As part of your membership in the PEPP Network Solutions program, this program will help you stay on budget and teach you where you can cut the fat off your spending. 

Step 4: Monitoring the results.  This is the fun part.  Take a look at the overall picture every 6 months.  Look back and see which credit cards have been paid off, how your credit has improved, how much you managed to save or just the relief of paying your bills on time and keeping the creditors from calling!

PEPP has budget programs for multiple levels of income.  We have consultants that can help beginners to high net worth clients ( see Tax Savings Strategies ).  Our initial consultation is always free... now there’s something you don’t hear often when it comes to Budget Planning.

With 100% confidentiality, our professional consultants will help you create a budget that's right for you.  Get started by contacting PEPP today.