Stacey Tisdale’s Financial Blueprint

In her first financial lesson, financial expert and on air journalist Stacey Tisdale creates a budgeting model suitable for anyone. By providing a clear example of smart spending, Tisdale hopes to inspire people to take charge of their financial lives.

Rather than speaking in terms of a budget, Tisdale speaks of a financial “blueprint.” This eliminates the fear of economic “dieting,” and establishes a pattern of intelligent goal assessment.

Before making any purchase, Tisdale suggests asking yourself four questions: Can I afford this? Why do I want this? Is it in line with my goals? If not, why am I making this purchase? By keeping these in mind before making a purchase, Tisdale asserts, your spending habits will change for the better.

Keeping a tangible example of your goal is helpful, such as a photo of a vacation location. By placing the photo in a wallet or regularly visible place, spending choices that would otherwise derail your vacation savings will allow you to reach your goals faster.

Once your goals have been established, executing a smart saving and spending plan is easy. Keeping track of income, fixed expenses, variable expenses, and discretionary expenses is vital. First, make a list of expenses, breaking it down into separate categories.  Fixed expenses include rent and insurance, while variable expense could include food and gas money. Discretionary spending could include entertainment, clothing, or other activities, and is the most easily adjusted type of expense.

It is important to keep in mind that your actual (net) income is lower than what is written on your paycheck, because you pay federal, state and local taxes. The specifics of filing tax returns will be addressed in a forthcoming program.

Raising children and owning a home are common long-term goals, and these require specific awareness of spending and saving. The US Department of Agriculture estimates that children cost a little over a thousand dollars a month, an expense which needs to be kept in mind for an effective financial blueprint. A general rule of thumb is to spend no more than thirty percent of your “pre-tax income” on housing, including mortgage payments, taxes, and home maintenance.

Consistently utilizing and updating your financial blueprint will allow you to lead a smart, economically savvy lifestyle in accordance with your goals.