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Investing Basics

January 2016 - Risk of Not Having a Budget

Now is the time of year when most of us make resolutions such as losing weight or gaining control of finances. However, without a plan of action, change is often unsustainable. SECU can help you gain control of your personal finances with a Spending Plan (budget) Review. A budget can help keep you on track and hold you accountable!

Without a plan, your spending will lack the discipline and control required to maximize your resources, assess your income versus expenses and address your capacity to cover expenses. A budget identifies areas of discretionary spending and unnecessary expenses. Very often, people are unaware of how much income is routinely wasted on small items, monthly subscriptions and impulsive spending. You can get a quick picture of your current financial position by identifying and comparing monthly income to monthly expenses. A spending plan will enable you to set spending priorities and examine discretionary expenditures.

The absence of a coordinated effort to manage household resources can cause undue stress. Developing consensus around a budget can help you:
  • Provide transparency of goals and objectives
  • Establish priorities and benchmarks to measure progress
  • Alleviate uncertainty of motives and activities
  • Project a pathway toward gaining financial control
  • Set forth a disciplined process to stay on track
Please note: Give equal consideration to forecasting expenses and income, and exercise caution when rewarding yourself for being frugal; do not confuse growth in home equity as increased buying power; and remember the goal is to spend no more money than you bring in.

Investment advisory services offered to North Carolina residents through Credit Union Investment Services. Securities offered through SECU Brokerage Services. Member FINRA, SIPC. Securities products are not credit union deposits. They are not obligations of or guaranteed by a credit union or its affiliates. They are not insured by the NCUA or any federal government agency. Securities products involve investment risks, including possible loss of principal. Investment representatives are also credit union employees, who may accept deposits.

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*Quoted rates, dividends, annual percentage yields (APY) and rates (APR) are subject to change daily at the discretion of the Board of Directors.