Wednesday, December 18, 2024
It’s that time of year! The hustle and bustle of holiday shopping has arrived and with it the possibility of debt. Have you ever spent more than you should have on gifts? It seems like every year there is pressure to have the biggest, best, most expensive gift which often ends up hurting your bank account.
Before you spend money that you don’t have on that fancy gift, create a budget!
Here’s how to get started:
- Identify Your Monthly Income: Identify all sources of income, including wages and salaries and any additional sources such as side hustles or investment returns.
- List Your Expenses: List all your expenses, including fixed costs like rent or mortgage payments, utilities, and groceries, as well as variable expenses like entertainment and dining out. Fixed expenses stay the same monthly, and variable expenses change each month.
- Prioritize Where You Spend: Determine which expenses are essential and which can be reduced or eliminated to align with your financial goals.
- Assign Where Your Money Goes: Assign specific amounts to each expense category based on your income and priorities. Remember to include savings contributions and debt payments in your budget.
- Take Advantage of Apps and Worksheets:There are many apps and worksheets that can help. See our resources below to get started.
Now you can holiday shop knowing you will have money left over to start the new year off right!
For more resources and information on creating a budget, visit our website.