MIAMI (CBSMiami) — Should tracking your money be a part of your daily routine? Or is it better to set a plan, sit back and watch?
Budgeting is more important now than ever before, but one study found 32 percent of us put together a monthly budget and only 30 percent have a long-term financial plan.
“People are not very good with their money,” said financial planner Andrew Rolnick. “But the reason I have a job is to help them try to get better with it.”
Rolnick worries about the social pressure people seem to put themselves under.
With a constant stream of posts and pictures on social media sites, it’s a different kind of keeping up with the Joneses.
“The most common thing I hear is, ‘How are my neighbors having a new car, a new addition?’ And I say they probably don’t have any wealth built up. They’re literally spending what they can,” Rolnick said.
He believes setting a budget is step number one and suggests taking an hour to write everything down in three categories: bills that have to happen, things that are likely to happen like dinners out or buying clothes, and luxury items like vacations and gifts.
“It’s starting with a basic budget. Understanding why you’re trying to reach the goal you’re trying to reach, and then trying to figure out the numbers to make those goals happen,” Rolnick said.
Rolnick has seen the most successful savers continue to check in on where they’re moving their money. He doesn’t think most people are motivated to do it daily but says checking in monthly or even yearly makes a difference.
“It does take a while but you eventually compare it to the person that hasn’t and you’re miles ahead,” Rolnick said.