Manage Your Spending

SHARE:

Author: Dina Barabash, Content Development & Web Specialist
Posted: Jan. 10, 2023

From spending time with family to gift exchanges, we hope you enjoyed the festivities of the holiday season! Now that things are returning to “normal,” it is time to refocus on  important things – like managing your budget.

A great way to establish healthy spending habits is to create a budget. Breaking down your after-tax income can be easier than you think. A great system to follow is the 50/30/20 budget. This means that 50% of your monthly income goes to needs, 30% goes to wants and 20% goes to savings. Let’s discuss what is included in each of these categories. Needs include groceries, housing, basic utilities, transportation, insurance and loan payments. Wants may include eating at restaurants, shopping, travel and entertainment. And then, 20% should be moved to your savings.

Another great way to budget is by utilizing the right tools. Although there are a lot of options for you these days, sometimes it is best to incorporate tools that you know you will use and that fit your lifestyle. For example, there are many helpful apps that will help you set your budget and help you stick to it. Recently, Forbes Advisor ranked eight of the best budgeting apps available. This ranking may be a great place for you to begin your search.

Have you also considered downsizing in areas that you do not use much, such as streaming? Take a look at your subscriptions and decide which ones you can do without. Another question you can ask yourself is if there are any subscriptions you forgot to cancel after the free trial. It is easy for such expenses to slip your mind. However, start the new year by releasing the extra services that no longer serve you. As you can see, managing your money can indeed be an attainable goal.