Russell Bailyn -

After months of anticipation, Navigating the Financial Blogosphere: How to Benefit from Free Information on the Internet hits stores today. And now, my era of shameless self-promotion shall begin! You can find the book online at Amazon.com or in Barnes & Noble and Borders bookstores. Please do pick up a copy and explore this project which I’ve worked so hard on! Inside I will point you towards various informational outlets on the web which can help you tackle personal finance and better understand a variety of issues regarding money. The chapters, which are based on questions I received from actual readers, include:

How Do I Choose A Bank?
Am I Scared of My Credit Score?
Why Should I Open an IRA?
How Do I Pay for College?
Am I Ready to Pick My Own Stocks?
The Fed? Interest Rates? Inflation? Why Should I Care?
Can I Dabble In Real Estate, Too?

You’ll also find links in the book to many valuable websites and blogs which can help you navigate the world of personal finance online. Most people don’t realize how much valuable (and free) information is ready and waiting for them. I act as a guide, pointing you towards reliable and often unpublicized resources.

In the next few weeks there will be a burst of publicity for the book, ranging from blog reviews and interviews, to magazine and newspaper features and a big release party on Tuesday. If you wish to review the book on your blog, let me know and I’ll have Wiley send over a copy.

Pick up your copy today!

Russell Bailyn
--
Wealth Manager
Premier Financial Advisors
14 E. 60th St. #402
New York, NY 10022
(212)752-4343 *31
rbailyn@premieradvisors.net

Securities and certain investment advisory services offered through: First Allied Securities, Inc., a registered Broker/Dealer. Member: FINRA/SIPC. Premier Financial Advisors, Inc. is a Registered Investment Advisor. First Allied Securities & Premier Financial Advisors are not affiliated entities.

Posted by Russell Bailyn at 02:22 PM | Permalink | Comments ( 8 ) | TrackBacks ( 0 )

I had a client come in last week to create a budget. As usual, I pulled out my template which attempts to capture all of one’s income and expenses for a given month. The budget worksheet we use at my firm is very detailed and includes all household expenses, funds which get earmarked for savings and investments, transportation costs, insurance premiums, etc. My most common experience when creating budgets has been that more money exists than one realizes. On paper, it seems near impossible that a shortfall could exist. It’s the casual discussion afterwards when the “oh yes, I’m addicted to downloading music” and “I needed those sunglasses” comments come out.

This morning I’ve come to a new realization: Most people will probably never follow a budget. While we’re on the topic--budgets are annoying! They make you feel like you don’t earn enough money and they force you to scrutinize how often you cut your hair and buy a scratch-off lottery ticket. So, my plan is to begin a new approach. When someone asks me to help them create a budget, I’m going to ask “why?”

As a financial planner, I think we should hold off on creating the detailed budget until after we fit the budget into the broader context of a financial plan. Why? Most people don’t follow the budget anyway, so we may as well try to find some other solution. Perhaps an investment program can be tweaked to create more income. Perhaps try transferring some of those stocks into bonds or a savings account which can provide a stream of monthly income. Or, some people need to take a closer look at their w-4 (tax withholding) form and use that as a budgeting tool. If you’re on a salary and get a tax refund every year, you’re effectively letting the IRS hold your money for you--and they don’t pay you any interest for it. This is a very common financial no-no. Adjust your withholdings, if possible, so that you don’t owe much or receive a refund when April rolls around.

What else can you do? Earn more money! At the end of the day, there are really only two ways to improve a budget: lower your expenses (that’s a joke for most people) or you can raise your revenues. We’re in a technological phase right now which allows people to make a few extra bucks doing all kinds of simple things from their computers at home. Do them! Make a few extra bucks. Part of the reason many young investment bankers save so much money is that they work 80 hours a week. Even if they wanted to blow $10,000 on a cruise or eat fancy meals, their schedules don’t allow for it. How’s that for clever budgeting.

My point is, if you’re having trouble with the budget, their may be more realistic solutions than simply itemizing your expenses from month to month. Think about how and when you earn money. Think about how and when you spend money. Consider how your taxes get paid and whether you could put a better strategy to work. Think about your savings plan too. Is your current allocation (stocks/bonds) the way it should be? Best of luck to all on this never ending and often frustrating task.

Do you have comments or questions? E-mail Russell.

Russell Bailyn
--
Wealth Manager
Premier Financial Advisors
14 E. 60th St. #402
New York, NY 10022
(212)752-4343 *31
rbailyn@premieradvisors.net

Securities and certain investment advisory services offered through: First Allied Securities, Inc., a registered Broker/Dealer. Member: FINRA/SIPC. Premier Financial Advisors, Inc. is a Registered Investment Advisor. First Allied Securities & Premier Financial Advisors are not affiliated entities.

Posted by Russell Bailyn at 09:56 AM | Permalink | Comments ( 2 ) | TrackBacks ( 0 )