Finance


Developing a Budget

The begining of any good financial program is knowing where you are, and where you are going, by developing a personal budget. There are a number of software programs which can assist you in placing these expenses in the correct categories. These would be items such as; car payments, Medical, pet care, Insurance, Loan payments, Utilities, donations, etc.

After you have identified these categories you need to track the expenses over a few months. Don't forget to look at some of the small cost of frequent purchases of a habit or indulgence items. Though these items may not look that much on a weekly or monthly basis, it can be staggering when added up over a year. For example, smoking a pack of cigarettes a day could run over $ 1,000 per year or A daily cup of coffee at $ 375 per year. As you can see, small amounts spent each day or week can soon add up to major expenses.

The good news is that this also works in a positive way. When you save small amounts from each pay check these can add up also over a twelve month period. When invested you can gain additonal dollars. (Though interest rates are far from what we would like, starting a savings program will establish a positive habit for the future.)

You must also remember that in building your budget that you must include all of your sources of income. ( Salary and Wages, Bonuses, dividends & interest, Social security, etc.) Just like you will evaluate your expenses to see where you can cut back. You can look at income and see if there is someway to generate an increase.

Once you have accumulated a budget of income and expenses it will be time to set a goal. This may be a combination of cutting some expenses and generating additional income by moving some savings for a higher interest, putting extra time into a part time business, or getting additional overtime at work. Whatever the goal may be, you have taken the first steps of developing a written plan.

This site will attempt to assist you by providing easy access to local resources in the financial field. In addition, we will provide other links which may be valuable to your planning efforts. Your suggestions are welcome.

Bank of America (540)265-3120
Bank of Botetourt(540)473-1173
Bank of Floyd(540) 745-4191
BB&T (540)344-6661
Bank of Fincastle(540) 473-2761
First Citizens 540-774-9284
First National Exchange Bank
First Virginia
Salem Bank & Trust
Valley Bank 540-342-2265
Wachovia