The Fun of Budgeting!

By Ryan Goldsman, CFP®, PAIP®

            Rarely do I meet another professional that enjoys budgeting as much as I do, but it happens every now and then. Of course, being one of “those” people, I’ve heard almost all the accountant jokes from my friends.

Like any other activity, it’s possible to overdo it – specifically if too much is planned. In fact, overplanning can make one vulnerable since it doesn’t allow for incidental spending, should an unforeseen event occur.

As this past weekend was Father’s Day, it meant brunch and many rounds of golf were to be played – all bearing a financial cost… but wait, there’s more!

Not long ago, it was Mother’s Day, and of course each person has a birthday, which translates to either a gift or a dinner. Again, all at a cost. Those with a large family or a larger circle of friends often spend a little more than average.

Similar to paying one’s taxes, these events occur every year, and yet, too many people are surprised when they roll around – and we shouldn’t be.

At the beginning of each year, it’s important to set a budget and establish how much needs to be set aside for one-time expenses such as birthdays, vacations, car repairs, and many more items.

By factoring in one-time expenses, it becomes much easier to balance one’s budget – especially for those who are generous around Christmas time (or any other holiday).

Last up, what is the definition of an actuary?

Answer: it’s a person who wanted to become an accountant, but couldn’t stand the excitement.