Creating a personal budget is the cornerstone of financial success. It empowers you to track your income, expenses and savings goals, ensuring you’re in control of your finances. Here are a few steps that you can take to help you create and stick to a budget:
Start Simple: Track Your Monthly Expenses
Keep track of all your expenses for a month. Record everything you spend money on, from rent and groceries to dining out and entertainment. This process helps you understand where your money is going and can help identify areas where you can cut back on your spending.
Calculate Your Monthly Income
Next, determine your monthly income. Include all sources of income, such as wages, freelance earnings, and passive income. Knowing how much money you have coming in allows you to allocate it effectively.
Categorize Your Spending
Once you have a clear picture of your income and expenses, categorize your spending into fixed expenses (rent and utilities) and variable expenses (groceries and entertainment). Allocate a specific amount to each category based on your priorities and financial goals. You could also have fixed or variable expenses that do not impact your budget monthly, such as your homeowners’ or car insurance premium, or an annual subscription or membership fee.
Track Your Progress
Use budgeting tools or apps, like SESLOC Online Banking, to streamline the process and track your progress through the built-in Financial Tools. You can view and manage all your financial accounts on one site, including accounts at other banks or institutions. Many apps categorize your spending automatically and provide insights into your financial habits, making it easier to stay on track.
Find New Ways to Save
You can also save on regular or unexpected expenses by taking advantage of the benefits included with your HomeFREE Checking™ account. Use your HomeFREE debit card to earn points on purchases that are redeemable for merchandise, gift cards, travel experiences and more. You can also get cash back rewards and redeem points for qualifying purchases in real time via text message. Your account also provides access to free identity theft recovery and mobile phone coverage where you receive a personal Privacy Advocate to research and resolve identity theft issues, plus insurance coverage up to $500 minus a $50 deductible for your cell phone’s repairs or replacement due to accidental damage, mechanical failure or theft.1
Stay Flexible: Review and Adjust Your Budget
Regularly review and adjust your budget as needed. Life changes, such as a job change, moving, or unexpected expenses, may require revisions to your budget. Flexibility is key to long-term budgeting success.
Sticking to a budget isn’t always easy! Remember to cultivate discipline and consistency. You can stick to your budget by avoiding impulse purchases, prioritizing needs over wants, and staying committed to your financial goals. Remember, every dollar you save brings you closer to financial freedom.
Looking for ways that you can save even more? We’re only a click, tap, phone call or branch away. Reach out today – we are here to provide you with personalized guidance and can help find the financial products and services that meet your needs.
