Financial Planning
Budgeting
Developing and maintaining a manageable budget can be challenging. Budgets aren’t one-size-fits-all; it's important to focus on developing the ideal budget to fit your unique financial needs. A budget that doesn't reflect your priorities, preferences and personality will never work.
Don’t just balance your checkbook; get a grip on your spending. Tracking your day-to-day spending can help you identify wasteful habits and tighten your purse strings. Hang on to receipts and keep tabs on cash spending so you can assign each transaction to a category, such as transportation, entertainment, personal care, etc. Categorizing expenses each month will help you determine how much you spend in different areas, so you can decide if changes need to be made. For example, if you’re spending 30% of your monthly income on dining out, you may want to consider some alternatives.
Monthly Budgeting
Click here to view a sample monthly budget worksheet. When developing your personalized budget, be sure to include the categories you created for tracking your spending as well as any expenses that don’t occur on a monthly basis, like property taxes and insurance. Don't forget to include a section for paying yourself FIRST. Saving should be part of your monthly budget, not something you do if money is left over.
Need help deciding how much of your income should be allocated to each spending category? Standard guidelines and sample budgets are available at bankrate.com, practicalmoneyskills.com or goodpayer.com.
Now that you’re developing a spending plan, are you looking for ways to cut back in certain categories? Believe it or not, slight changes in your routine can make a difference. For example, if you eat lunch out every week, chances are you’re spending an extra $1,500 to $2,000 each year. Add another $800 to $1,000 for daily trips to the local java joint. Eliminating these budget busters can add up to big savings!
Looking for more smart ways to save? Check out this list of ideas and resources to help you save money on everything from appliances to travel.