Creating a budget remains one of the most important financial tasks you can perform. No matter how much money you bring in, and at what age, having a budget gives you a path to financial freedom. However, perhaps you’ve tried to create and stick to a budget in the past, but failed to do so. Not to worry, you just need a little help. Here are some of the best ways to create, and stick, to any financial budget.
Know Your Expenses
In order to create a budget, you need to know your expenses. When doing so, make sure to be as thorough as possible. Don’t leave any stone unturned when identifying these expenses.
Additionally, it’s good practice (when financially available) to add in 10 to 15 percent to your expenses, in order to account for any unforeseen expenses, such as car bills or insurance hikes.
Know Your Income
Knowing your income and your expenses goes hand in hand. This is the amount of take-home money you make. You’ll need to subtract your expenses from income, so having a clear understanding of what you make every month is critical.
It’s easy to forget about moving money over to your savings account. Your employer may direct deposit your money into a checking account. Typically, your checking account either makes little to zero interest, while your savings account does, so it pays to move money into the savings account. Automate your accounts to regularly move money over into your savings. Even if this is just $25 a month, it’s a start.
There are several exceptional financial applications available to help you follow an established budget. The Mint app (available on both Android and iOS) allows you to establish a budget from your income and expenses and then monitor all spending in real-time, making it easier to follow your budget.
By following your established budget, you’ll improve your financial standing, pay off your bills faster, and begin to see your savings grow. If you need our help, Heritage Bank can help you with this process, from creating a savings account to working with you in greater detail on mapping out your budget and financial future.
As a Branch Manager, Kay helps personal and business clients by providing products and services designed to meet their individual needs. A dedicated volunteer with the City and County, she has over 33 years in banking and a vast knowledge of financial services. Kay is able to provide financial counseling through consultative conversations as a part of her role. Whether your needs are deposit or loan related, contact Kay and see how she can help with your individual financial security!
Asst Vice President & Branch Manager • 770-515-7073 • [email protected]