Kick Off Your Year on the Right Foot

 The Six-Letter Word That Could Save You

B-U-D-G-E-T. Not hard to spell, right? Well, it’s not hard to do, either. If budgeting sounds daunting to you, try to reframe the way you think about it. Budgets aren’t necessarily guardrails that limit you; they can also be seen as friendly guides to help you reach your financial goals. A budget can be your best friend if you let it.

Not sure where to start with a budget? Let’s be honest, it won’t be as fun as binging Netflix. But you can make it better by getting cozy, making coffee/tea, and gathering your favorite notebook & pens (or make a nice spreadsheet, if that’s your thing). You can create a budget for a week, month, quarter or year, depending on your needs; however, monthly is most common.

In one area, list all your sources of income. In another, list all of your expenses, such as rent, utilities, groceries, entertainment and others. Dig deep into your past transactions to get the best idea of your spending habits. Once you have a clear picture of your finances, identify areas to save!

Set Your Goals: It’s up to You

After identifying any wiggle room in your budget, think about what you want to do with that extra money. Do you want to save it, invest it, set up an emergency fund or pay off bills? It’s all up to you. Hint: These are all better options than spending!

Really think about the biggest areas of improvement in your finances. If you have a lot of debt, you may want to start there. If you have a big vacation coming up, start saving for that. Have some not-so-great credit? Learn how to improve your credit score. The beauty of a budget is that it can be tailored to your own individual needs. It’s there to serve you! Once you have your budget and financial goals set, you’re already a lot better off than most. This is a great foundation for kicking off your year on the right financial foot!

Now Stick With It!

Now that you have your budget and goals set, here are a few extra tips for keeping up with them throughout the year!

• • Check In – After setting up your budget and goals, don’t let them get dusty in a folder somewhere. Check them at least quarterly. This will help keep things top of mind.
  • Track – Inflation happens, bills go up, debt goes down, maybe you got a big bonus and paid off your car! Things change. Keep track of these changes as the year progresses.
  • Update – Constantly update your budget to best reflect your current financial situation. Then update those financial goals as well!
  • Automate – A great way to make sure you’re sticking with your savings goals is to automate your transfers to savings. There are lots of ways you can make your direct deposit work better for you and your needs.
  • Celebrate – Don’t forget to reward yourself when you reach a financial goal or realize you’ve been doing great with your budget! This will help you stick with these habits and keep up your hard work. Whether it’s a spa day or concert tickets, you deserve it.

This blog is intended for educational purposes only. For details about specific products or services, see credit union for details. For questions about investments, please consult your financial advisor.