Build a Basic Budget In Just Two Steps
Everyone should have a budget. (Yes, everyone.) But we know that’s easier said than done. If you’ve never made a budget before or if you haven’t reviewed yours in ages, you might be stressing about how to even sit down and get started.
Really, Just Two Steps
- Income: Without knowing exactly what you’re bringing in each month, then how will you know if you have enough to cover your needs effectively? You need to know what you’re working with.
- Expenses: Tally up an average month’s expenses. Every single one. The more realistic you are about your expenses, the more accurate your budget will be.
Once you know the details on your income and expenses, you’ll be able to craft a plan. Now you can take this information and set goals for yourself, no matter what you might be saving for. Money left over after expenses can be moved to an emergency fund, regular savings, or retirement funds. If you find that you’re outspending your income, then this detailed list of expenses will help you determine where you can make cuts.
You’re Done (For Now)
Now that you have your budget set, you’re done and never have to think about it again, right? Sorry, nope! A budget evolves as time goes on. Getting a raise? Review your budget. Having a baby? Review your budget. Looking for a new apartment? Review your budget. Shopping for a new car? Review your budget. About to retire? Review. Your. Budget. On top of that, it’s good practice to review your budget a couple of times a year even if you don’t experience any big life changes. You might find that your needs or spending habits have changed little by little without you noticing.
Get Started Today!
Jeanne D’Arc Credit Union is here to support you through all the stages of your life, and we have a bunch of free resources you can take advantage of. To start, you can download this free budgeting worksheet to get started right now, and if you have any questions at all you can call our partner, GreenPath Financial for free one-on-one counseling services.
