Preparing Your Budget for the New Year
Want to take back control of your finances for the upcoming year? A budget can help.
The new year is fast approaching, and that means it's time to start setting some realistic goals. According to YouGov, nearly half (49%) of Americans are planning to make "save money" one of their New Year's resolutions.
If you're one of the millions of people hoping to improve your financial health in the upcoming year, a budget can be incredibly helpful. Here are some things to keep in mind:
Your budget has likely changed
If you have used a budget in the past, you probably can't reuse it. CNBC recently reported that 64% of Americans have changed their purchasing habits during the pandemic. They are spending less on travel and transportation, but more on education and home repairs.
It's important to update your budget with this in mind. Perhaps you're not planning on taking a vacation next year, but you should put aside some cash for creating a home office and purchasing work-from-home supplies. But it's not just these sporadic purchases that have changed, you have likely seen how your weekly spending is different; buying more cleaning supplies and food with the entire family home.
A banker can help you create the ideal budget for your unique situation.
Reasons to reevaluate spending for the new year
You shouldn't create a budget for 2021 just because your spending has changed. There are plenty of other reasons why planning your purchasing is beneficial. According to The Balance, the main reason many people utilize budgets is to stop overspending. This is ideal for individuals and families who want to control their monthly purchases and/or set aside a portion of their paychecks to pay off debts.
If you're saving toward a larger goal in 2021, like a new car, trip or renovation, creating a budget now is also helpful. Not only can you figure out how to reduce spending on some things, like eating out, you can also set aside a dedicated amount of money each month to meet a goal. It's never too early to begin thinking about a financial plan for the new year.
A banker can help you perfect your budget
With a personalized budget, you're in control of your finances, but it can often be difficult to know where to start. While you may immediately think of canceling your subscriptions and stopping eating out at restaurants, these are often only short-term saving solutions.
A banker can be your best asset when it comes to crafting the perfect budget for your needs. After analyzing your financials, like income and spending, alongside your goals they will help you identify areas where you can save. They are equipped with financial knowledge and understanding about budgeting, savings and investing, so you are on a pathway to comprehensive financial health. Furthermore, they know the tools that can help you manage and personalize your budget.
Budgeting is much more than simply saving money. It's about creating healthy spending habits so you can live comfortably in the moment, pay off your debts and have savings for the future. Contact your local Vectra Bank Representative today for more budgeting help.