Set a Budget
Make savings a part of it
By Melanie Donaghy

As part of our commitment to helping readers through this difficult economy, Connections magazine is bringing together experts in financial services and investment strategies to share their strategies to get ahead.

In this first installment, Wells Fargo VP Melanie Donaghy offers some great advice. Check back regularly for more tips from the pros.

Understanding your personal cash flow—your monthly income less expenses—is always useful and in times of economic uncertainty it’s a priority for a sound financial future. Knowing what, when and where you spend your money can help you prioritize and manage your finances. It can be a shock to discover you are spending nearly $100 on fancy coffees or pastries, and $200 on dry cleaning each month.

Be sure to document not only your monthly income (salary, interest earned, support, etc.) and expenses (rent or mortgage, food, health care, clothing, car maintenance and transportation costs ), but also include a pro-ration of other bills like insurance and education fees. Don’t forget to set a monthly savings goal, even when times are tough, and include that as a fixed expense. By doing so you’ll not only know what your current cash flow is and how much you have to spend, but you’ll be building for the future.

As seen in this issue of Connections magazine:

Melanie Donaghy, Wells Fargo