Information from the Washington State Department of Financial Institutions

Planning and Sticking to a Budget

To reach your financial goals, you need to be careful how you spend your money. A budget can help with that.

Know Where Your Money Is Going

The first step to setting up a budget is determining where your money goes. Try tracking your spending for at least a month.

You have a few options when it comes to tracking your spending:

  • Record every purchase you make in a small notebook.
  • Collect all your receipts and record them later.
  • Review your account statements at the end of each month.
  • Use an app to track your spending.

Planning Your Budget

Once you determine how you spend your money each month, it's time to develop 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.

Sticking to It

  • If you usually spend more than you earn
    You can use a budget to see where that money is going. Look for ways to spend less or earn more.
  • The best budgets keep getting revised
    After developing a budget, it's helpful to track to see how it's working. This way, you can see what's working and refine it over time.
  • Prioritize saving
    Treat savings as a non-negotiable expense and prioritize it in your budget.
  • Plan for emergency expenses
    Anticipate irregular expenses like car repairs, medical bills, or holiday gifts by setting aside a portion of your monthly budget for these purposes.
  • Seek professional advice if needed
    If you need help creating or sticking to a budget, consider seeking help from a financial advisor or counselor. They can provide personalized guidance and strategies to help you achieve your financial

Helpful Resources

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