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Saturday, May 23, 2009

Personal Budgeting Tips

Budgeting your finances is a very important and often overlooked function that everyone should perform. Do you have enough money in your checking account? Can you afford to save more for retirement? Should you set aside more money for investments or savings? Click on the links below to download the Excel Spreadsheets and start to better manage your personal finances.

Step #1 - Calculate your income tax status.

* Goal: You want to get your tax refund/balance due down to zero to accurately determine your monthly cash flow and not give the government an interest free loan. Tax Projection Worksheet (email me for a copy)

Step #2 - Adjust your paycheck withholding accordingly:

* Goal: Adjust your withholding based on step #1 to arrive at a zero tax due/ refund and determine your maximum 401K contribution. Update your W-4 with your employer and begin having the proper amount of taxes taken out of your paycheck.
Withholding Worksheet (email me for a copy)

Step #3 - Determine your monthly budget

* Goal: Get a handle on your monthly cash flow to maximize your savings and retirement contributions and keep track of the activity in your main checking account and general finances. Budget Checkbook Tracker (email me for a copy)

1 comments:

  1. Thanks for sharing such great post, according to me budgeting doesn't mean that you have to compromise your needs but it is important for planning financial life. Household Budgeting means to create a planning for the money spending. Build emergency fund, minimize the use of credit card, planning, etc. are the tips for making personal household budgeting.
    ReplyDelete

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