Creating a spending plan that aligns with your income and expenses paves the way for short-term and long-term financial security. Experts at Coulee Bank recommend assessing your finances regularly so you can create a budget and save for your future.
Become Intentional with Your Money
Dan Motoyoshi, SVP Business Banking Officer at Coulee Bank, says, “Assessing your finances is important so you can become more intentional with your money.” When you are intentional with your money, it allows you to see dollar for dollar where your money is going. When you know where your money is going, you can create a plan with achievable goals.
When you are tracking your money, Motoyoshi says you are less likely to make impulsive purchases which can derail your financial goals. That is not to say creating a plan or budget means you can no longer purchase “fun” items or make donations to your favorite charity. Budgets are simply a way to track your money, ensure you have a safety net, and feel confident spending money on the things you enjoy.
Create a Plan
To create a budget, list your income. This can include normal paychecks, money from a side hustle, garage sales, freelance work, or any other form of income. Then, list your fixed expenses or the expenses that stay the same each month like your rent or mortgage. Next, determine any additional expenses known as variable expenses.
Once you know how much income you receive, you can subtract fixed and variable expenses. This shows you how much money you have left to use at your discretion. Once you have this data, it’s important to track all purchases throughout the month. Motoyoshi says, “Knowing where the money is going helps you save for short-term goals, like debt repayment, or long-term goals like buying a home or saving for retirement.”
Stick with Your Plan
Once you begin the budgeting process, determine a tracking method that works for you. Motoyoshi says, “Some people like to manually track their money, but if finances aren’t something that interests you, try using a budgeting app that automates transactions. Without a tool that works for you, sticking to your budget may be tough.”
Look at budgeting as a step toward financial stability and a way to achieve your goals. If you have a plan that aligns with your values, income, and expenses you can set yourself up for long-term financial security.
Creating a spending plan that aligns with your income and expenses paves the way for short-term and long-term financial security. Experts at Coulee Bank recommend assessing your finances regularly so you can create a budget and save for your future.
Become Intentional with Your Money
Dan Motoyoshi, SVP Business Banking Officer at Coulee Bank, says, “Assessing your finances is important so you can become more intentional with your money.” When you are intentional with your money, it allows you to see dollar for dollar where your money is going. When you know where your money is going, you can create a plan with achievable goals.
When you are tracking your money, Motoyoshi says you are less likely to make impulsive purchases which can derail your financial goals. That is not to say creating a plan or budget means you can no longer purchase “fun” items or make donations to your favorite charity. Budgets are simply a way to track your money, ensure you have a safety net, and feel confident spending money on the things you enjoy.
Create a Plan
To create a budget, list your income. This can include normal paychecks, money from a side hustle, garage sales, freelance work, or any other form of income. Then, list your fixed expenses or the expenses that stay the same each month like your rent or mortgage. Next, determine any additional expenses known as variable expenses.
Once you know how much income you receive, you can subtract fixed and variable expenses. This shows you how much money you have left to use at your discretion. Once you have this data, it’s important to track all purchases throughout the month. Motoyoshi says, “Knowing where the money is going helps you save for short-term goals, like debt repayment, or long-term goals like buying a home or saving for retirement.”
Stick with Your Plan
Once you begin the budgeting process, determine a tracking method that works for you. Motoyoshi says, “Some people like to manually track their money, but if finances aren’t something that interests you, try using a budgeting app that automates transactions. Without a tool that works for you, sticking to your budget may be tough.”
Look at budgeting as a step toward financial stability and a way to achieve your goals. If you have a plan that aligns with your values, income, and expenses you can set yourself up for long-term financial security.