Home 9 Uncategorized 9 Budgeting Basics: A Simple Guide to Taking Control of Your Finances

Budgeting Basics: A Simple Guide to Taking Control of Your Finances

Mar 25, 2025 | Uncategorized

Blog post written by Scott Nelson, Financial Advisor with Legacy Financial Group.

Tax season is here, and along with the deadlines and deductions comes a golden opportunity to reevaluate your financial strategy. Rather than dreading the paperwork, think of it as a chance to take control of your money—one thoughtful step at a time.

Whether you’re hoping to grow your savings, pay off debt, or simply feel more in control of your money, creating a budget is the first step toward achieving your financial goals.

The good news? Budgeting doesn’t have to be complicated.

With a few simple steps, you can build a budget that fits your lifestyle and helps you make smarter financial decisions.

Why Budgeting Matters

A budget is more than just a spreadsheet or a list of numbers —it’s a roadmap for your financial future.

It helps you understand where your money is going, identify areas to trim back, and prioritize what matters most.

Think of it as a tool to help you live within your means while still working toward your dreams—whether that’s buying a home, taking a vacation, or saving for retirement.

Step 1: Know Your Income

Start by figuring out how much money you have coming in each month. This includes your salary, any side income, and other cash flow.

If your income varies, use an average from the past six months to get a realistic baseline.

Pro Tip: Don’t forget to account for taxes and deductions. Your take-home pay is what you’ll base your budget on, not your gross income.

Step 2: Track Your Expenses

Next, take a close look at where your money is going. Categorize your expenses into two buckets:

1. Fixed Expenses: These are the bills you pay every month, like rent or mortgage payments, utilities, car payments, and insurance.

2. Variable Expenses: These are the costs that can fluctuate, such as groceries, dining out, entertainment, and shopping.

Tracking your expenses for a month or two can be eye-opening.

You might be surprised by how much small expenses like coffee runs, subscriptions, or impulse purchases can chew up your budget.

Pro Tip: Use a budgeting app or a simple spreadsheet to make tracking easier. Many apps can sync with your bank accounts and automatically categorize your spending.

Step 3: Set Your Priorities

Once you know how much you’re earning and spending, it’s time to set priorities.

Start by covering your essential expenses, like housing, utilities, and groceries.

Then, allocate money toward your financial goals such as paying off debt, building an emergency fund, or saving for retirement.

Finally, don’t forget to leave room for fun—an overly restrictive budget is hard to stick with!

Pro Tip: A popular budgeting method is the 50/30/20 rule:

50% of your income goes toward needs (fixed expenses)
30% goes toward wants (variable expenses)
20% goes toward savings and debt repayment

Step 4: Adjust and Adapt

Your budget isn’t set in stone, it’s a living document that should evolve as your life changes.

If you’re overspending in one category, look for ways to cut back.

For example, could you cook at home more often instead of dining out?

Or cancel a subscription you no longer use?

On the flip side, if you get a raise or pay off a debt, consider reallocating that money toward your savings or another financial goal.

Pro Tip: Review your budget regularly —monthly is ideal—to ensure you’re staying on track.

Step 5: Build an Emergency Fund

One of the most important parts of any budget is an emergency fund.

Life is unpredictable, and a financial cushion can help you weather unexpected expenses, like a car repair or medical bill, without derailing your budget.

Aim to save three to six months’ worth of living expenses in an easily accessible savings account.

Even setting aside $500 can make a big difference in an emergency.

Budgeting Puts Control Back in Your Hands

Budgeting is a powerful tool that puts you in control of your finances and reduces stress.

By understanding your income, tracking your expenses, and setting clear priorities, you can create a budget that works for you, not against you.

Remember, the goal isn’t perfection. It’s progress. By making small, consistent changes, you’ll be better prepared to handle life’s financial curveballs—and discover the confidence that comes from knowing you’re in charge of your future.

Don’t hesitate to ask for help if you need it. At Legacy Financial Group, we’re here to support you on your financial journey.

If you’d like to learn more about budgeting or explore personalized financial strategies, connect with us.

Here’s to building a brighter financial future!

From coffee to soda to energy drinks, caffeine is a part of daily life for many of us. And while it is naturally occurring, overconsumption can cause health problems such as increased blood pressure, heart palpitations, anxiety, headaches, and insomnia. For this blog, we sat down with Susie Roberts, a Registered Dietitian to discuss all things caffeine—why it’s such a big part of our lives, how much of it is in the food items many people enjoy regularly, and how much is too much. We’ll also talk about current trends and tips on how to boost your energy naturally so you can stop relying on caffeine to keep you energized throughout the day.

Q: Just this morning, I heard someone say “I’m not caffeinated enough for this day!” It really is such a big part of our daily lives. Why do you think that is?
A: It’s not surprising at all to hear that! About 90% of American adults consume caffeine daily. People are looking for ways to boost their energy and increase alertness and caffeine is readily available and socially acceptable.

Q: So, what exactly is caffeine, and how does it work?
A: Caffeine is a natural stimulant that affects the central nervous system. After consumption, it’s absorbed into the bloodstream and travels to the brain, where it blocks the effects of adenosine—a chemical that promotes sleep. This interference helps you feel more alert and awake.

Caffeine typically reaches your brain within 15 minutes, peaks in the bloodstream at 30 to 120 minutes, and has a half-life of 3 to 7 hours.

Q: Everyone knows that coffee and many soft drinks contain caffeine. But where else can it be found? If we are consuming these beverages and other items, how can we know the amount of caffeine we are getting?
A: Energy drinks have become very popular—especially among young adults. These contain not only caffeine, but may also have added sugars, so it’s a double whammy. Chocolate and many varieties of tea also contain caffeine. You may also want to check out any nutrition supplements or medications you are taking. And, many people may not realize it, but even decaf coffee contains a certain amount of caffeine.

Q: How much is too much when it comes to caffeine?
A: For most healthy adults, the FDA says up to 400 mg per day is safe. That’s about 4 cups of coffee. But you need to remember, that’s based on an 8 oz cup. Many people order an extra-large coffee, so you need to be aware of exactly how much you are taking in. Each individual reacts differently to caffeine based on their genetics, medications, and sleep habits.

How Much Is Too Much? Make Sure You Know Your Limits.

Q: What are the current trends in caffeine consumption?
A: As I mentioned before, energy drinks are increasing in popularity. They haven’t taken over coffee in the top spot, but Americans spent $19.2 billion on them in 2023 and that’s expected to rise to $33 billion by 2030. Coffee remains at the top, accounting for 69% of total caffeine intake, an increase of 15% in the last decade. And while the number of tea drinkers has dropped by 50%, those who drink it are consuming more.

Q: How can I be more aware about the amount of caffeine I’m getting?
A: Mindful consumption of caffeine is being intentional about what, when, and how much you consume. Track your intake and pay attention to any potential unwanted side effects like jitters or difficulty getting to sleep or staying asleep. Are you sleeping 6-8 hours a night and waking refreshed? If not, consider a “hard stop” 10 hours before your bedtime. Remember, that cup of coffee you had at 8 am can potentially still be in your system at 5 pm, so it’s important to time it right. And finally, if you decide you want to reduce your caffeine consumption, do it slowly to minimize any withdrawal symptoms such as headaches.

Be Mindful of Your Caffeine Consumption.

Q: Sometimes though, you need extra energy when you hit that afternoon slump. Can you suggest any alternative ways to get that boost and avoid turning to caffeine?
A: There are a few simple ways you can get that energy boost. First, make sure you are hydrated. Water supports joint health, oxygen delivery, temperature regulation, skin health, and more. You also want to move—even a short walk or stretch break can help. Make sure your meals are balanced with a protein and complex carbs. And most importantly, rest and recover. Sometimes rest—not more coffee—is what your body needs.

Q: So, what are your final thoughts on caffeine?
A: Caffeine can be part of a healthy lifestyle and may even offer some health benefits—but it’s all about balance and awareness. If you’re reaching for that third cup of coffee at 3 pm, pause and ask: Am I actually tired, hungry, or just in a habit? And then give one of the things we talked about a try, to get that energy boost naturally and see if that caffeine craving goes away.