Building a Budget
A budget is an important step in your financial journey. Building a budget can help you stay on track with your short and long-term financial goals. It will also give insights into what expenses are most important to cover every month and which ones you might want to reduce to get ahead.
Tips for Creating a Budget
- Start with your income. Understand how much money is coming in after taxes each month.
- Track your expenses. Make a list of your monthly expenses and note the payment amounts for each expense.
- Calculate the difference. By knowing the difference between your income and expenses, you will gain insight to if you're saving more than you're spending, or spending more than you're saving.
- Set a goal. If your monthly expenses exceed your income, determine if there are any opportunities to spend less or what can be reduced. If you have more savings than expenses, come up with a plan to build on that each month and apply to your emergency fund.
- Stick to it. Follow your budget monthly. If there is ever a change to your income or expenses, make sure to adjust your budget accordingly.
Other Money Management Resources and Tools
Tracking your income and expenses is the first step in knowing how much money is coming in each month, where your money is going, and what your cash flow needs might be. We have other money management resources and tools that can help you manage your budget and track spending.