There's no time like the present to reevaluate your finances and ensure you are on the path to financial success. Now is the time to reflect on your spending habits and choices, plan your budget for the next year and make the choices needed to reach your financial dreams. 

Benefits of Creating a Budget:

• Develops a plan for your money - both where you spend it and how much you are able to save.
• Can help you establish an emergency savings for when unplanned expenses arise.
• Can help you reach all of the financial goals you have, whether it be a few years down the road or 20 years from now.

Creating a budget can easily be done with a pen and paper, using a spreadsheet, or a budget tool or app. 

Evaluating your budget is simple:

• Determine your net income
  • This would be the income from all of your jobs combined.
• Determine your expenses
  • Fixed expenses are those that do not change monthly, like rent, mortgage, child care, car payment, etc. 
  • Variable expenses are those that change every month, like gas, groceries, entertainment and eating out.

Income – Expenses =?

 

Ideally, the answer to the equation should be zero, meaning all of your spending and saving has been planned and balances. Now that your budget is laid out, remember it's flexible. If you come up with a positive number, that's great. But that also means that you have income that could be put to work - like building savings, paying down debt, and any other use that helps you reach your financial goals. If you come up with a negative number, your monthly expenses exceed your income, so you'll need to find a way to earn more money or cut back on spending. 

Need help with your budget? Get help with our Budget Calculator or through a PFCU Financial Coach. To set up an appointment today, use Live Chat Support, please call 844-517-3611 or email pfcuinfo@pfcu4me.com.