Creating & Maintaining a Budget
Spring has arrived, and we all know what that means: Time to clean! Your “financial house” is no exception. Here are five important points to keep in mind whether you are creating a budget for the first time or simply updating your current plan:
- Involve everyone impacted in the process. If you are married and share expenses, you must be on the same page with budgeting. Creating mutual awareness is key.
- Keep it simple. If your budget isn’t easy to understand, let alone follow, you likely won’t stick to it. It’s important to be realistic and take a hard look at your habits.
- Know your inflows and outflows. It is absolutely necessary to know how much you earn and what expenses you have. A calendar, spreadsheet, and calculator may come in handy!
- Use the method that works for YOU. Some people find it helpful to use tracking tools or online budgeting platforms, such as Mint.com.
- Your budget is not static. It’s a good idea to review your budget a few times every year or when your financial situation changes, like having a child or buying a home.