Financial Planning 101-Phoenix Valley
June 18, 2018
Creating a Budget and Herding Cats
Let’s start at the beginning: a budget. When you first begin to bring order to finances that have been in disarray, it can feel a lot like herding cats. If you’ve ever created a budget, you’ll recognize the process. As soon as you get one aspect organized, you realize there are seven other categories that require attention, and it feels a little bit like those cats are fleeing their cages. You begin with broad general categories and organize them into subcategories. With incomes, you account for salaries and wages, realistic projections of contractual or freelance work, and dividends from investments and/or retirement funds. With expenditures, you separate needs from wants and probabilities from hopeful dreaming—not forgetting taxes, savings, and charitable contributions. And when you’ve got your categories in order, you begin to assign dollar amounts to each category, going back and forth with adjustments—until hours (or days) later, you arrive at a balanced budget. That’s a lot of cats to try and organize! At Austin Fleck Rental Property Management, we understand your ultimate financial goal is to create wealth through investing in homes for rent. We can help you achieve this goal; it’s our profession. And like every other successful enterprise, reaching your goal will take sound financial planning.
Ch-Ch-Ch-Changes Require Regular Assessment
Life is all about change. You may soon realize your hard-earned budget is going to need regular assessment and adjustment if you’re going to stay on track to meet your financial goals. What seems like a reasonable financial strategy in the present can quickly be outpaced by economic downturns and unforeseen circumstances. Wisdom dictates that we live within our means, that we avoid debt, and we learn to maximize our spending power by buying less trendy stuff and making our purchases count more for quality. As much as we can, we save for a rainy day or a job loss or illness. These are basic principles that enable us to exercise good stewardship over the money we are blessed to have. When we do it well, we can generate wealth.
With Wealth Comes Responsibility
Wise financial planning understands the principles of wealth creation and seeks to maximize the benefits. How we spend affects how others live. Money that is idle is like the proverbial light hidden under a bushel: nobody gets the benefit. Money that is employed in useful endeavors is like the farmer who takes care of his or her land and brings in an abundant harvest of ten, fifty, or one hundred times the seed sown; many people get to eat of the fruit of his/her labor. And the wise farmer keeps enough seed for next year’s crop. Over the years, he or she creates sufficient wealth to buy more land and increase the potential for even greater life-giving gains that he or she can pass onto the next generations.
How is your money bringing value?
Austin Fleck Property Management specializes in helping people grow their financial portfolios through sound real estate investment management. We have experienced firsthand the principles of wealth creation and the significant impact for good that it brings. We want to help you do the same with your homes for rent. When we manage your rental properties, you can be assured you’re receiving the benefit of the best the industry has to offer. Now that the cats are out of the bag, let’s round them up. Call us today so we can get started.