Financial Fundamentals

Budgeting Program Using a budgeting program (an app, online website, software, etc) is a great way to develop and implement a budget. Here are the two general flavors. Aggregation Tools I love aggregation tools because it makes managing a budget so much faster. The less work you have to put into just getting the data, the more likely you are to stick with it. Aggregation software automatically pulls in transactions from your banks, credit cards, and other accounts; performs some basic categorization for you; tracks your progress in the budget; alerts you to overspending; and can provide some useful graphics…

Budgeting guidelines use all sorts of terminology. Here are the most important ones you should be aware of as you start crafting your own budget. Essential Expenses Essential Expenses are those you cannot reasonably live without. What does that include? That’s where money is more of an art than a science and is different for everyone.For example, most agree that your mortgage payment falls within the essential category. What if your mortgage payment is from an 8,000-square-foot home with a pool and private tennis court? Essential or not?Generally essential expenses include the following: Housing Anything related to maintaining a residence.Mortgage…

Choosing a budgeting method can feel overwhelming given the many strategies available. Each budgeting style offers a different way to approach spending, saving, and giving, depending on your goals, habits, and personality. Below is a detailed overview of some of the most popular budgeting frameworks used today.1. Backward Budgeting (Reverse Budgeting)Backward Budgeting, also known as Reverse Budgeting, is a powerful strategy grounded in the principle of "paying yourself first." Instead of allocating money toward expenses and saving whatever is left over, you first determine the amount you want to save or invest. Once your future goals are secured, the remainder…

If you aren't used to moving money around, transferring your financial accounts can be a little nerve-wracking. The process itself is relatively straightforward process—but it helps to understand the steps involved.There can be several ways that transfers can be implemented depending on the account, the custodian, and the titling. At Gilbert Wealth, I help my clients through every step of the way.  The Basic Transfer Process When you transfer an account from one financial firm to another, the process is typically managed behind the scenes by the institutions involved. In most cases, once you’ve signed the paperwork, the firm handles…

Hiring your children to work—whether in a business, household tasks, or freelance-type work—can provide them with valuable skills, a sense of responsibility, and financial benefits. It can also offer tax advantages for you while helping them build savings for future goals and start down a path of financial independence. Paying children can make them eligible to save to Roth IRA's, which if done early can be a huge boost to their financial futures. However, certain rules apply depending on the type of work, compensation, taxes, and documentation required. This article covers what you need to know about hiring your kids. What Kind…

When managing your finances, it’s crucial to understand how different types of financial protections work. Many consumers assume that their bank accounts, investments, and insurance policies are fully protected, but different organizations have different types of coverages. The Federal Deposit Insurance Corporation (FDIC), National Credit Union Administration (NCUA), Securities Investor Protection Corporation (SIPC), and State Insurance Guaranty Funds each play a unique role in safeguarding consumers' financial assets. This article breaks down how each of these institutions works, what they insure, and common misconceptions. FDIC - Federal Deposit Insurance Corporation The FDIC is an independent U.S. government agency that protects depositors in…