Create your budget before the month begins
Before the month begins, lay out any distinctive stand-out expenses you expect during the coming month. An unexpected charge can throw of your budget and cause unneeded financial stress.
Budget savings and expenses
Don’t just budget for costs, budget for saving towards your future as well. Set a savings goal and implement it into your budget so that all income is accounted for and has a place it is meant to be allocated purposefully.
Practice the 50/30/20 rule
While not always possible, try your best to stick to the 50/30/20 rule, with 50% of your income going towards essentials like rent/mortgage payments and other bills, 30% going towards non-essentials like entertainment, eating out, etc., and 20% going towards savings and/or retirement
Prioritize paying back your debt
If possible, budget for putting some extra money towards repaying your debts each month rather than simply making minimum/arranged payments.
Build a strong emergency fund
Do your best to establish an emergency fund that you can use to cover expenses for a few months or cover a large unexpected charge in case of an emergency.
Invest in your Retirement as early as possible
Learn what percentage your employer will match your 401 (k) and if it is feasible, make that contribution each month. Additionally, explore the benefits of what an Individual Retirement Account (IRA) can do for you and your future at https://bluefoundrybank.com/ira
Budget with your partner
If you live with a significant other, be sure to include them in the budgeting process and either build one shared budget or build your own budgets together to ensure you are both on the same page in terms of financial responsibilities and expectations.
Set bills on auto-pay
Avoid any potential late fees that may pile-up by setting any and all bills to auto pay.
Explore areas you can trim your expenses
Track what you are spending the majority of your non-essential budget on each month and try to find areas where you may be able to cut back. For example, maybe it’s possible to eat out one less time per week if you are going out to eat multiple times, for example.
Don’t be afraid to adjust and change your budget
Life can be very unpredictable, with jobs, expenses, and other factors changing unexpectedly. Always be prepared to examine and readjust your budget if it is not helping you reach your financial goals as expected.