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Budgeting

Budgeting for Beginners

Budgeting for Beginners
Getting started with your household budget.

Budgeting

Budgeting towards needs and goals. One of the objectives of creating a household budget is that, as time moves on and the various household members advance in their careers, they are likely to make more money. Knowing where that money goes can help direct that money to not only meet your day-to-day needs but also to potentially realize your financial goals. Rent payments may become mortgage payments, and socking away a few bucks into your savings each payday could change into an effective financial strategy involving various investment tools.1

Remember that investing involves risk, and the return and principal value of investments will fluctuate as market conditions change. Investment opportunities should take into consideration your goals, time horizon, and risk tolerance. When sold, investments may be worth more or less than their original cost. Past performance does not guarantee future results.

The back of an envelope or a spreadsheet app. Traditionally, a household budget could be worked out “on the back of an envelope.” Of course, this is still true, though you may have access to more bells and whistles than previous generations. Whether you prefer to work it out with pencil and paper or by computer, the main rule is to create and stick to the budget.

Easy come, easy go. Start by taking note of your income. Some Americans have more than one income source, either through a second gig or even a hobby turned small business. You don’t have to be making money very long, though, to realize that it doesn’t always sit still in your checking account. Along with your income, tally up your expenditures: Housing costs (rent, utilities, etc.), groceries, student loan payments, transportation expenses, phone, and Internet, as well as entertainment. It adds up! (More like subtracts, actually.)

Make adjustments. Ideally, the number at the bottom of this reckoning should be a positive number. This means that you’re living within your means and, while you may want to make that a larger number by adjusting your expenses, you’re at a good starting point.

Adjustments are probably overdue if you have a negative number; you’ll need to take a cold hard look at those expenses and think about can I live without (such as mountaineering lessons) and what isn’t going to give (the essentials: food and shelter).

 

Your other choice, of course, is to make more money. As you move on in your career, this will likely happen as you earn salary increases or build your business. Don’t forget, though, that life gets more expensive over time, as well. Rents and fees will rise as time goes on. Regular adjustments are a natural part of good budgetary maintenance.

Goals and strategies. If you have money coming in that is not being gobbled up by line items on your budget, and you stick to it and keep it that way, you’re (literally) coming out ahead. Now’s the time to put that money to work toward goals and strategies. Goals can be small, like saving up for a vacation or upgrading an item in your home. Or they can be larger, like saving for a major expense.

Goals can work side-by-side with financial strategies, which tend to be “bigger picture” in scope. Financial strategies tend to be things like looking ahead to your retirement or investing in creating more income (so you can get back to mountain climbing). For these bigger strategies and the shorter-term goals, there is an advantage to seeking out a financial professional geared toward helping you get the most from your efforts.

There is no “one way” to budget. There isn’t a single, one-size-fits-all solution for creating and maintaining a household budget. Financial professionals also know this and can help craft a strategy suited to your risk tolerance, goals, and financial situation.

 

 

This material was prepared by MarketingPro, Inc., and does not necessarily represent the views of the presenting party, nor their affiliates. This information has been derived from sources believed to be accurate. Please note – investing involves risk, and past performance is no guarantee of future results. The publisher is not engaged in rendering legal, accounting or other professional services. If assistance is needed, the reader is advised to engage the services of a competent professional. This information should not be construed as investment, tax or legal advice and may not be relied on for the purpose of avoiding any Federal tax penalty. This is neither a solicitation nor recommendation to purchase or sell any investment or insurance product or service, and should not be relied upon as such. All indices are unmanaged and are not illustrative of any particular investment.

 

 

_________________________________________________________________________________
Traci L. Kovacic is a registered representative of and offers securities through The O.N. Equity Sales Company, Member FINRA/SIPC, One Financial Way; Cincinnati, OH  45242; (513)794-6794
Riverfront Financial and The O.N. Equity Sales Company are unaffiliated companies
Citations.
  1. PewResearch.org, March 25, 2020
Top rated

Our Focus is on Your Goals!

Superior Customer Service

 

Why is it so rare? How can we make it the norm?

 

The customer experience is one of the keys to business success. In some industries, it can mean the difference between success and failure.

According to recent research by a major credit card issuer, 90% of Americans consider quality of customer service as they decide whether they want to do business with a company. Another study, conducted by a major business software manufacturer, notes that 93% of customers who get great service from a business are likely to come back and buy again.1

Still, great service remains rare. Customers who want help are often made to feel like they are inconveniencing a business. Some businesses disregard the customer experience, believing that consumers will buy largely on price or a trusted name, as if we were still in the era of dry goods stores and green stamp booklets.

Great customer service is about solving problems and meeting needs. The essentials are simply stated: a quick response, superior communication, putting the customer first. And yet, all this is often absent. As a first step to making these essentials the norm at your company, consider the following questions.

Is your business truly customer focused? Is it evolving in response to customer needs? Are you thinking of your customers and the employees in close contact with them when you think about your brand?  Paradoxically, being a customer-focused business means focusing on the experiences of your employees as well as the people who purchase your products or services.

Your employees have to adopt the mindset that they are helpers, problem-solvers for a community of people. They come to work each day to “do good,” and they are the “experts” when it comes to this kind of help; they excel at responding to a specific need.

One of the keys to instilling this mindset is to communicate the values, purpose, and mission of your business. What role does your company play in people’s lives, in the community it serves? What kind of experience should your customers have? Your employees need to hear these things from you.

What kind of community are you creating? Think of your customers and workers as m

embers of the community created around your business. Ask your customers for their opinions of your products or services; involve them strongly in your brand’s evolution and direction. Doing the same with your workers not only gives them a say, but it is also a step toward becoming leaders themselves.

What degree of customer service can your employees deliver? Do they have the authority to give a dissatisfied customer a free product, a full refund, or a unique accommodation? If not, maybe they should be empowered with some of these options. They might just change that unhappy customer into a raving fan.

Are you constantly listening to your clients or customers? If you wonder how things might change in your industry, start by talking to the people who might want to see some change: the consumers. Gather steady feedback from your clients or customers to learn what they want and need now, as opposed to what they wanted and needed years ago when you opened your doors. What you learn may lead you to revise your business plan or direction, and the input will definitely refine the way that your company responds to your customers.

Best customer service

At Riverfront Financial we pride ourselves in being 100% customer focused. Our goal is to work along side you for the long run, to help you achieve your current and future financial goals, and to make sure your family has the right protection with the right Life Insurance policies in place.  Call us anytime to schedule a meeting, we are always here to help and answer any questions that you may have.

 

This material was prepared by MarketingPro, Inc., and does not necessarily represent the views of the presenting party, nor their affiliates. This information has been derived from sources believed to be accurate. Please note – investing involves risk, and past performance is no guarantee of future results. The publisher is not engaged in rendering legal, accounting or other professional services. If assistance is needed, the reader is advised to engage the services of a competent professional. This information should not be construed as investment, tax or legal advice and may not be relied on for the purpose of avoiding any Federal tax penalty. This is neither a solicitation nor recommendation to purchase or sell any investment or insurance product or service, and should not be relied upon as such. All indices are unmanaged and are not illustrative of any particular investment.

 

_________________________________________________________________________________
Traci L. Kovacic is a registered representative of and offers securities through The O.N. Equity Sales Company, Member FINRA/SIPC, One Financial Way; Cincinnati, OH  45242; (513)794-6794
Riverfront Financial and The O.N. Equity Sales Company are unaffiliated companies

 

Citations.
  1. HubSpot, July 20, 2020
Weekly update

Weekly Economic Update

 

Weekly Economic Update

In this week’s recap: Stocks continued a downward slide in response to continued uncertainty; fiscal stimulus still delayed.

September 14, 2020

 

  • THE WEEK ON WALL STREET

Stocks traveled a volatile path last week as investors appeared concerned about the upcoming elections, an uncertain economy, and more delays with additional fiscal stimulus.

The Dow Jones Industrial Average slid 1.66%, while the Standard & Poor’s 500 slumped 2.51%. The Nasdaq Composite index plummeted 4.06% for the week. The MSCI EAFE index, which tracks developed overseas stock markets, rose 1.44%.1,2,3

 

  • Stocks Continue To Slip

In a holiday-shortened week of trading, stocks resumed their slide from the prior week, with the technology-heavy Nasdaq slipping into correction territory in a three-day span ended on Tuesday, September 8th. (A correction is defined as a decline of at least 10% from a recent high.)4

After staging a strong rebound on Wednesday, stocks once again headed lower as the Senate failed to pass another coronavirus stimulus bill. Mega-cap technology companies remained under pressure throughout the week. Energy stocks added to investors woes, plunging on data showing an unexpected build-up in inventories.5

The market ended the week on a mixed note, as technology companies lost additional ground.

 

  • Final Thought

On Friday the nation commemorated the tragic events of September 11, 2001.

We join all Americans in remembering the lives we lost that day and the profound impact on the victims’ families. We are reminded that it was the unity, kindness, and warmth that we collectively rediscovered in the wake of 9/11 that saw us through that difficult period.

T I P   O F   T H E   W E E K:

Some companies match employee retirement plan contributions. So if your budget allows, contribute enough to qualify for the match.

 

 

THE WEEK AHEAD: KEY ECONOMIC DATA

Tuesday: Industrial Production.

Wednesday: Federal Open Market Committee (FOMC) Announcement.

Thursday: Jobless Claims. Housing Starts.

Friday: Leading Economic Indicators.

Source: Econoday, September 11, 2020
The Econoday economic calendar lists upcoming U.S. economic data releases (including key economic indicators), Federal Reserve policy meetings, and speaking engagements of Federal Reserve officials. The content is developed from sources believed to be providing accurate information. The forecasts or forward-looking statements are based on assumptions and may not materialize. The forecasts also are subject to revision.

 

THE WEEK AHEAD: COMPANIES REPORTING EARNINGS

Tuesday: Adobe Systems (ADBE), Lennar Corporation (LEN), Fedex (FDX).

Source: Zacks, September 11, 2020
Companies mentioned are for informational purposes only. It should not be considered a solicitation for the purchase or sale of the securities. Investing involves risks, and investment decisions should be based on your own goals, time horizon, and tolerance for risk. The return and principal value of investments will fluctuate as market conditions change. When sold, investments may be worth more or less than their original cost. Companies may reschedule when they report earnings without notice.

Q U O T E   O F   T H E   W E E K

“Popularity: it is glory’s small change.”

VICTOR HUGO

 

 

 

T H E   W E E K L Y   R I D D L E

 

A plastic bottle filled with cola weighs one liter. What do you need to add to it to make it weigh less than two ounces?

 

LAST WEEK’S RIDDLE:

If it were two hours later than right now, it would be half as long until midnight as it would be if it were an hour later than right now. What time is it?

ANSWER: 9:00 PM.

 

 

 

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Please feel free to send us their contact information via phone or email. (Don’t worry – we’ll request their permission before adding them to our mailing list.)

 

Investing involves risks, and investment decisions should be based on your own goals, time horizon, and tolerance for risk. The return and principal value of investments will fluctuate as market conditions change. When sold, investments may be worth more or less than their original cost.
The forecasts or forward-looking statements are based on assumptions, may not materialize, and are subject to revision without notice.
The market indexes discussed are unmanaged, and generally, considered representative of their respective markets. Index performance is not indicative of the past performance of a particular investment. Indexes do not incur management fees, costs, and expenses. Individuals cannot directly invest in unmanaged indexes. Past performance does not guarantee future results.
The Dow Jones Industrial Average is an unmanaged index that is generally considered representative of large-capitalization companies on the U.S. stock market. Nasdaq Composite is an index of the common stocks and similar securities listed on the Nasdaq stock market and is considered a broad indicator of the performance of technology and growth companies. The MSCI EAFE Index was created by Morgan Stanley Capital International (MSCI) and serves as a benchmark of the performance of major international equity markets, as represented by 21 major MSCI indexes from Europe, Australia, and Southeast Asia. The S&P 500 Composite Index is an unmanaged group of securities that are considered to be representative of the stock market in general.
U.S. Treasury Notes are guaranteed by the federal government as to the timely payment of principal and interest. However, if you sell a Treasury Note prior to maturity, it may be worth more or less than the original price paid. Fixed income investments are subject to various risks including changes in interest rates, credit quality, inflation risk, market valuations, prepayments, corporate events, tax ramifications and other factors.
International investments carry additional risks, which include differences in financial reporting standards, currency exchange rates, political risks unique to a specific country, foreign taxes and regulations, and the potential for illiquid markets. These factors may result in greater share price volatility.
Please consult your financial professional for additional information.
This content is developed from sources believed to be providing accurate information. The information in this material is not intended as tax or legal advice. Please consult legal or tax professionals for specific information regarding your individual situation. This material was developed and produced by FMG Suite to provide information on a topic that may be of interest. FMG is not affiliated with the named representative, financial professional, Registered Investment Advisor, Broker-Dealer, nor state- or SEC-registered investment advisory firm. The opinions expressed and material provided are for general information, and they should not be considered a solicitation for the purchase or sale of any security.
Copyright 2020 FMG Suite.
CITATIONS:
  1. The Wall Street Journal, September 11, 2020
    2. The Wall Street Journal, September 11, 2020
    3. The Wall Street Journal, September 11, 2020
    4. CNBC.com, September 8, 2020
    5. CNBC.com, September 9, 2020
CHART CITATIONS:
The Wall Street Journal, September 11, 2020
The Wall Street Journal, September 11, 2020
treasury.gov, September 11, 2020
Traci L. Kovacic is a registered representative of and offers securities through The O.N. Equity Sales Company, Member FINRA/SIPC, One Financial Way; Cincinnati, OH  45242; (513)794-6794
Riverfront Financial and The O.N. Equity Sales Company are unaffiliated companies