Here are these steps with some patterns of importance that should be considered. These are the steps you take to make a budget, also visit How to Make a Personal Budget for details of a budget and various links to drafts of budgets and Excel tables:

1. “Enter your monthly net income”
No matter where you come from: Work, spouse, child support, unemployment, charity, tips, etc. If your income varies, try to put an amount that is average. Please show only net income, which brings her home.

2. “List the amount you deposit monthly savings income to net”
Saving is very important and should be done first spending. Ideally at least 10% of their salary.

3. “List your fixed monthly expenses”
Consider what the expenses that must always be paid are. Note that the first thing you have to list your needs: shelter, food, transportation, communication, etc. (more…)

The IRS has a very interesting newsletter frequently asked questions related to job loss and its relation to taxes, here are the most important guidelines:

The following Questions and Answers provided by the Internal Revenue Service (IRS) to clarify the financial implications related to the taxes faced by employees who have lost their jobs, have provided references for additional information.

“Severance pay is taxable?

Yes, severance pay is taxable in the year you receive it. Your employer will include the amount of these payments on Form W-2 and is going to withhold federal and state taxes, for additional information see Publication 525.

How about the hours accrued vacation or illness?

Yes, the annual pay or accrued vacation or sick are calculated by the employer as part of their salary and will be included on Form W-2. (more…)

Building wealth is like building a brick wall, you put a brick on top of another and make sure the wall is solid before you put another. So too is the savings as the basis of fortune and realistic goals are needed to accomplish each step before proceeding to the next.

The power saving has to do little by little, baby steps. Every athlete began crawling. When you accumulate wealth quickly (although you can achieve) can be easy prey for scams and deceptions which can cost us in the long run.

Fortune cannot make overnight. A good goal is a savings account for emergencies. An emergency savings account is money set aside to cover expenses if you lose your job or suffer an injury that prevents you from working. (more…)

Here are some ways that you can change your spending habits to save a little. Sometimes the key is not sacrificed, or stop living (as we sometimes feel), but try to make some small changes that help us continue doing what we want, but with a little more creative.

Invite your friends to your home
Sometimes I do not want to accept the reality that most of our salary is going to happy hours because the 3 or four hours you use for socializing. For some it is the club, for others it is the cinema, etc. At the end we want to have fun, and this can happen to a meeting in the house. Whenever the party is in a suit (this dress or suit that) and that the tasks are shared it may be a night of fun, affordable cocktails and without the need to have a designated driver.

Extra kitchen to take to work
If you usually buy your lunch around your work, you can spend less if you cook an extra meal the night before and prepare for lunch the next day. The money we spend on lunch tendency has become one of the biggest expenses we have in the separate budget of our needs (home, car, etc.) (more…)

A large part of the articles I write mention how important it is to have a budget for a financial life. There is talk of saving a life with manageable debt and have the exact amount you can spend (or you have to make) to achieve your financial goals. A client asked me:  “But I need a quote?” In addition, I replied with the following reasons. Then I asked colleagues about why the great need for a budget and they gave me other reason they are here too, do not forget to leave yours in the comments:

The budget helps you save.

If you do not know how much you spend, and how much you have left to your financial goals, it is very difficult to get money other than our income for saving. A budget will help to allocate an exact amount that you subtract from your paycheck and transferred to your saving account without having to first find out “how you left over.” L key to financial freedom is to pay yourself first. (more…)