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Finance: Expert Tips for Budgeting for the New Year
Expert Tips for Budgeting for the New Year
By Lauren Caggiano By now you probably know that operating without a budget is a bit like going grocery shopping hungry. It never ends well. But how do you get started and how can you stay the course? Stephanie Walpole a branch manager with STAR Financial in Columba City, offers some expert tips, just in time for the new year.
First, she addresses some common myths and misperceptions that can get in the way of success. For instance, people might think they’re too busy or not organized enough to track a budget. Another one relates to demographics. “Some individuals on either a lower or more comfortable income might think they don’t need to budget,” she said. “And to me, that’s not true at all. I feel like higher income individuals also could set up a good budget process, as well.” In doing so, Walpole suggests they begin with the end in mind. For instance, what’s a reasonable lifestyle and how might expenses and savings fit into it? Knowing why you’re doing something can make it easier to follow through. “Maybe ask yourself, what are the things that they’ll be saving for and how much debt do they currently have? And what can they budget to get those payments paid down quicker? That means figuring out where their money is going especially if they live paycheck to paycheck. I feel like they need to see things as a bigger picture,” she said. Otherwise, life happens, and before you know it, you might find yourself in debt and/or with little or no savings. Sharing from her own experience, Walpole said the cost of meals out can add up quickly and you might find you don’t have a good handle on how much you’re spending until that monthly statement arrives. In this case, ignorance is not bliss. The good news is that you can adapt or reclaim healthy financial habits at any point. You don’t have to wait until January to check in or adopt a new budget. There can be a lot of pressure to start fresh when the calendar turns to a certain date but that’s not always constructive. You might not be ready or able to make the necessary changes. For this reason, Walpole recommends using January to plan and then executing in February for the rest of the year. She also points out that you don’t have to necessarily set a monthly budget. Some people find it’s easier to commit to a weekly one, and once they’ve mastered that cadence, they can advance to more sophisticated goals. Speaking of goals, Walpole said that consumers might look to tools like SavvyMoney to keep track of their finances and get a big-picture view. Also, when in doubt, developing a relationship with a banker will serve them in the long run. It never hurts to get a second sense of eyes on your finances and he or she might be able to make some recommendations to help you fast-track your goals. Here’s to owning your money and financial future in 2023 and beyond! a
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Resource: STAR Financial Bank, Fort Wayne, starfinancial.com
