Get Back on Track with Your Budget
A new season offers a fresh chance to get back on track – back on track with your health and wellness goals, back on track with your commitments and routine, and back on track with your budget. Fall, in particular, offers an ideal fresh start when it comes to money matters.
“Summer can be the season of excess – staying up late, eating out often, taking vacations – which can impact your budget,” said Dr. Amy Hammers. “If you have been celebrating since Memorial Day, this new season provides the opportunity to pause, notice what needs to change and then get back on track. If you are in a good place with your budget ahead of the holidays, you will be able to spend more mindfully without getting into a financial whirlwind and you won’t have to start 2018 facing a pile of debt.”
If summer wasn’t kind to your budget or you could benefit from greater organization, the following tips will help you refocus your finances:
- Take stock of where you are. An inventory of current income as well as any debts (including balances, interest rates and monthly payments) is a smart place to start. Add in other monthly expenses and you will have a picture of monthly cash flow. This will help you determine a suitable monthly budget.
- Update or craft a budget. Make sure your budget works for your lifestyle and incorporates a system you will actually use. You can make an electronic budget with an Excel file or track items in a notebook; what is important is that you have an easy-to-reference and easy-to-use system that will remind you when you’re going overboard. You can update your budget regularly as you learn to trim excess, manage unexpected expenses and plan for the future.
- Ensure your goals are attainable. Your New Year’s resolution may have been saving one-quarter of your income for a new house, new car or lavish vacation. While it is easier to be austere in January, you may have realized that goal wasn’t attainable as the year progressed. While keeping goals in mind, adjust your budget to ensure it is livable and still incorporates opportunities for fun.
- Incorporate savings. If you do not already have savings that would cover about six months of living expenses, incorporate this important line item into your budget. You can start slow, dedicating just two percent of your monthly budget to savings, and expand as you are able.
- Be creative. You can get back on track with your budget and still have fun. If you notice that you are spending too much on meals out, focus on eating from your garden or pantry for a week or involving every family member in cooking a meal that costs less than $15, for example. If you have been traveling all summer, make a list of free or inexpensive local attractions that you can venture out to this fall. If you have kids, encourage them to get creative and brainstorm fun money-saving ideas as well.
- Give yourself a break. Summer is truly the season of enjoyment. If you went a little wild, you are not alone. Practice compassion, give yourself a break and then rededicate yourself to a more budget-friendly fall.
