William Penn Life, 2011 (46. évfolyam, 1-12. szám)
2011-12-01 / 12. szám
Moneywise with Jeff DeSantes Budgeting your money An important step in financial planning that’s too often neglected NOW THAT THE NEW YEAR is nearly upon us, this is a perfect time to prepare and implement a budget for the new year. Budgeting money is another important area in personal finance. A well-planned household budget will enable you to gain control over your finances and free up money for purchasing life insurance or for long-term investments. A household budget is not to be thought of as a negative tool, but as a money management tool that enables you to gain financial freedom. The most important aspect of a budget is to first establish one and make it a priority for your family. To encourage yourself to budget your own money is a bit more than listing your incomings and outgoings each month. You must go through the listing process and then keep an eye on both sides of the equation, but there are also other factors in home budgeting. What incentive can there be to having a home budget and sticking to it? The answer is actually quite simple. Nobody becomes rich by spending more than, or even the same as, they receive each month. Wealth grows from surplus—that is, the surplus left over at the end of the month after you have completed your spending. It is important when budgeting to maintain a detached view of the figures. Think of yourself as a finance professional helping a consumer set and manage a home budget, and set yourself aside from any emotions that may creep into your mind, especially when it comes to peer pressure. Keep away from emotional and irrational spending of your money on things that are more of a "want" than a "need." Something else that you should take time to do is figure out your net worth. Simply put, net worth is the value of all of your assets minus the value of your liabilities. Your personal net worth should be a positive; your assets should be worth more than your liabilities. After you have completed this process, it would benefit you greatly to contact your WPA agent in order \M ate*-iAeP to make sure that you have enough life coverage on the main income provider. You also need to evaluate who in your family should have coverage and how much coverage each should have. You should also speak with your WPA agent and discuss utilizing one of the WPA annuities that we offer. There's no time like the beginning of a new year to get started on the right track! □ If you do not have a WPA agent, please call the Home Office at I -800-848-7366, ext. 120, and we can assist you in finding an agent who will serve you and your family by offering: • A Review of Your Needs • Life Insurance Protection • Taxed-Deferred Annuities • • Juvenile Insurance Plans • Special Fraternal Benefits • 4 0 December 2011 0 William Penn Life
