Keeping a personal budget is crucial to ensuring your financial health. However, many people have a hard time getting started, which is why Clark W. Terrell CPA helps clients create a reasonable plan and stick to it. As a trusted accountant in Crossett, AR, this firm has earned a reputation for providing high-quality services at affordable prices. Whether you need help with personal taxes or require assistance for business financing, this team has what it takes.

5 Accountant-Approved Tips for Creating a Personal Budget

Have a Goal in Mind

Developing a budget plan is often easier with a tangible goal in mind. Whether you’re interested in funding a vacation or getting a head start on college tuition, identifying a benchmark makes it easier to save and track your progress. 

Select Three Budget Categories

Not all budget categories are negotiable—obligations like housing payments should be prioritized. Once you identify the essentials, select three spending habits you want to improve and focus on those. For many people, entertainment, eating out, and shopping for fun are the habits they want to address.

Put Money in Savings First

Many people save whatever money is left over after covering monthly expenses. However, many accountants find that saving money first can be an effective budgeting strategy, as forces people to be more cautious with their spending. You can always retrieve the money from your savings account if necessary.

Track Spending

Keeping a money journal is a quick and easy way to reduce the amount of money you spend each day. Little purchases, such as a daily cup of coffee, can add up without quickly. Tracking these purchases helps you identify frivolous spending activity.

Use Cash as Much as Possible

Using a debit or credit card is convenient, but you might forget how much you spend until the bank statement arrives at the end of the month. Carry cash as often as possible to curb unnecessary spending. If you prefer the ease of paying with a card, consider using a refillable debit card and track each payment until the money runs out. Only refill the card if there are funds available after setting aside savings and covering essentials. If you want to use a credit card, look for one with a low limit to prevent overspending. 

Creating a personal budget is simple when you have an experienced accounting firm on your side. Clark W. Terrell, CPA helps clients achieve their financial goals, so they can enjoy a more stable future. Schedule an appointment with this seasoned accountant by calling (870) 364-5006 today. Visit the firm online to learn more about their services.