The beginning of a new year represents opportunities and the chance to improve aspects of your life. One of the most common New Year’s resolutions involves finances, whether budgeting, saving money, or making a large purchase. If sticking to a budget is one of your goals for the coming year, and you are searching for tips to help you achieve that goal, then you are in the right place.
In this blog, Boardman Training Center outlines our top tips and tricks to help you develop and follow a budget to make the most of your money and reach your financial goals. Keep reading to learn BTC’s advice on budgeting!
Think About Your Financial Goals
The first step in establishing a budget is to thoroughly evaluate your financial goals, both short and long-term. Examples of such goals might include paying off student loans, building a savings account, lowering credit card debt, or making a significant purchase like a car or a home. Reflecting on your financial aspirations for the year can help you understand your current situation and create a budget that supports you in achieving those objectives.
A helpful strategy for goal-setting is the SMART goals method. This process guides you through breaking down a large goal into specific, measurable, attainable, realistic, and timely steps to help you stay on track. If you need assistance converting your overall goal into a SMART goal, check out BTC’s sister school, East Ohio College’s blog, How To Create SMART Goals, for a step-by-step guide.
Consider Your Income and Expenses
After establishing your financial goals, the next step is to analyze your finances, including your monthly income and expenses. Begin by calculating your total monthly income alongside your fixed expenses. Fixed expenses are recurring bills that remain consistent or change only slightly each month, including rent or mortgage payments, car loans, insurance, gym memberships, phone bills, credit card payments, and more. Once you clearly understand your fixed monthly expenses, you can assess your variable expenses.
Variable expenses are those costs that fluctuate each month, such as groceries, gas, dining out, entertainment, clothing, and more. Gaining a general sense of your spending in each category will assist you in determining how much of your budget should be allocated for these expenses.
Be Realistic
A budget serves as a tool that empowers you to manage your finances, ensuring that you control your money. Being truthful about your financial circumstances, spending, and necessities when developing a budget will pave the way for success. For example, if you create a budget with little funds allocated to variable expenses like clothing or dining out, you may find yourself spending on these items regardless. By allocating funds for variable expenses that bring you joy, you can still indulge in things that aren’t necessities while adhering to your financial plan.
Additionally, another helpful tip for creating a realistic budget is to take the time to evaluate your subscription services and consider cutting out those you rarely use. You are likely paying for subscriptions without even realizing it. While each charge may seem insignificant, it can add up quickly. Saving even a small amount provides you with more resources to allocate elsewhere. Numerous online services can consolidate your subscriptions, helping you review all your payments and decide which ones are worth keeping.
Be Adaptable
Along with maintaining a realistic approach to your budgeting, it’s crucial to remain adaptable. Events like holidays, birthdays, vacations, and other special occasions may require additional spending beyond your regular expenses. By planning ahead and incorporating these elements into your budget, you can relish these moments without the anxiety of overspending.
For instance, if a vacation is on the horizon, you might allocate less of your budget to groceries and more towards gas and dining out to cover the extra costs. Always remember that you are in control of your budget, and optimizing your finances is the key to staying on track.
Follow A Template
Having evaluated every facet of your financial situation, it’s now time to arrange the numbers and formulate a budget. Utilizing an online pre-made template is an excellent approach, as it comes equipped with essential formulas, enabling you to customize it according to your needs while the template handles the calculations. If you prefer a physical format, numerous printable templates are available for monthly budgeting. Selecting a template from a reliable source can assist you in visualizing your spending, discovering potential savings, and modifying your budget to achieve your financial goals.
Boardman Training Center Is Here To Help Make This Year The Best Yet!
Are you ready to change your life in the upcoming year? If that’s the case, BTC is ready to help you reach your goals through accelerated training in phlebotomy, EKG, medical assisting, or medical billing and coding! With a focus on hands-on experience, certification* preparation, and student support, Boardman Training Center will steer you towards a fulfilling new career.
Don’t let another year pass by wondering what your life could be like; take the first step by requesting information from Boardman Training Center today!
*Certification is contingent upon passing the corresponding industry certification exam.