The very idea of making a budget, much less adhering to one, can overwhelm the chronically disorganized. And that kind of anxiety and frustration can make it hard to even think about resolving to get on a better financial footing in the new year.
The good news is that even the checkbook-challenged, filing system-deficient and perpetually messy can take steps to shore up their finances without undergoing a major personality overhaul.
While financial experts often recommend tracking expenses to rein in unbridled spending, it is possible to build a nest egg without detailing every penny spent.
“Most wealth accumulators do not budget, me included, at least in the traditional sense,” says Kahler Financial Group President Rick Kahler, who is registered with the National Association of Personal Financial Advisors. “Here is what they do: Out of every dollar, they take out their taxes, then they take out 10 to 20 percent for investing, then 10 to 20 percent for emergency savings, and finally 5 to 10 percent [to give away] and they live on the rest.”Page 1 of 5 | Next Page