Broker Check

Budget Checkup: Tax Time Is the Right Time

April 16, 2020

Every year, more than 147 million Americans, just like you, file federal tax returns, according to the Tax Policy Center. Many of my clients often tell me how much they dread searching through their files to locate their mortgage, retirement, and investment account statements. But gathering your records for tax season can also be an excellent opportunity to evaluate your income and expenditures. In other words, tax season is a great time to give the household budget a checkup. Here are some tips I’ve compiled over my years that may be helpful.

  • Create Some Categories - Start by dividing expenses into unique categories, like ones for home, auto, food, and entertainment expenses. Don’t forget savings and investments as well.
  • Follow the Money - Go through all the receipts and statements you gathered to prepare taxes and track everything. Be as specific as possible, from large expenditures down to your morning coffee.
  • Determine Expected Income - Add together all sources of income. Make sure to use net income.
  • Do the Math - It’s time for the moment of truth. Subtract projected expenses from expected income. If expenses exceed income, it may be necessary to consider changes. Prioritize categories and look to reduce those with the lowest importance until the budget is balanced.

Even though tax season can be a pain, this really is a great opportunity to give your household budget a thorough checkup. I know I feel better after evaluating my own finances this time of year.

Kind Regards,


Michael Stutzman, CFP®

Wealth Manager

Cetera Investors is a marketing name of Cetera Investment Services.  Securities and Insurance Products are offered through Cetera Investment Services LLC, member FINRA/SIPC. Advisory services are offered through Cetera Investment Advisers LLC. 

Securities and insurance products are offered through Cetera Investment Services LLC (doing insurance business in CA as CFG STC Insurance Agency LLC), member FINRA/SIPC. Advisory services are offered through Cetera Investment Advisers LLC. Neither firm is affiliated with the financial institution where investment services are offered. Advisory services are only offered by Investment Adviser Representatives. Investments are: *Not FDIC/NCUSIF insured *May lose value *Not financial institution guaranteed *Not a deposit *Not insured by any federal government agency.


Footnotes, disclosures, and sources:

The content is developed from sources believed to be providing accurate information. The information in this material is not intended as tax or legal advice. It may not be used for the purpose of avoiding any federal tax penalties. 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 Suite is not affiliated with the named broker-dealer, state- or SEC-registered investment advisory firm. The opinions expressed and material provided are for general information, and should not be considered a solicitation for the purchase or sale of any security. Copyright 2019 FMG Suite.