The Perfect Resolution: Monthly Budgeting
Start the year off right by starting to track your monthly budget. Knowing where your money goes is the first step to managing your budget. Below are some tips and tools to get you started.
Understanding Your Budget
What is your income? Do you have something more than just your paycheck? Make sure you capture all of the money coming into your household.
What are your expenses? From household expenses such as mortgage/rent, utilities, phone bills, to insurance, groceries, clothes, and car payment (gas too!), what are your MUST HAVE expenses.
Subtract your MUST HAVE expenses from your income to see what’s left. Knowing that number will help you decide how you can budget for the fun stuff.
Click here for a Budget Worksheet to get started today.
Your Daily Expenses
The first step in becoming disciplined about your spending is to understand where your money goes. Use the Spending Diary to track your expenses for a week, or even a full month. Check your wallet for receipts. Try to recall any ‘little’ expenses. This will help you think about your daily spending habits and how you can reduce discretionary spending.
Money Saving Tips
Check out some Money Savings Tips that can help reduce your overall expenses. The money you save can be used to pay off some debt you may have, such as credit card bills or a car payment.
Once you have established a budget stick to it. Getting started is the first step but maintaining it is a daily, weekly, and monthly effort. Knowing the money that comes in and goes out from your household will help you control your finances and give you the opportunity to plan for the future by saving.
Good luck and if you need any help or guidance, please stop by any of our 110 offices. We are here to help.