Frugal Living

Tips for Budgeting in the New Year

The new year is just around the corner, and many people are starting to think about their financial goals for this upcoming year. One of the most popular resolutions is to create a budget, but it can be hard to know where to start. 

If you’re looking for some guidance on how you might want to set your new year budgeting goals, we’ve got you covered! In this blog post, we will discuss how you can set the right goals and succeed.

Identify Your Goals

It’s ideal to prioritize your financial goals and then figure out how much money will go into each goal every month. Rather than spread yourself too thin, focus on the most important things you want to accomplish this year and break them down by month.

You can then start to create a plan to pay for them. This will help you to find ways to save on monthly expenses.

Try prioritizing your needs and wants. Maybe you want the newest iPhone, which will set you back about $700. However, your car is starting to need repairs and you’ve been putting it off because it’s just so expensive! Decide which is most important and focus on budgeting for that first.

Create an Emergency Fund

Putting away an emergency fund is essential if you want to have money for a rainy day. Start small and then work your way up. 

If you are a salaried worker then you can set up your bank to transfer out money to an emergency fund as soon as your pay hits your bank account. If you are not salaried you should start thinking of your emergency fund as an employee you have to pay each month. Train yourself into thinking that there can be no excuses the money must be paid.

Use Budgeting Apps

A great way to set new year budgeting goals is to use one of the many budgeting apps out there. Most of these apps are easy to get started with because they do most of the work for you by categorizing your expenses.

Some other benefits are that budgeting apps help you identify areas where you’re spending too much money. They also help you to build realistic budgets based on your income and track your progress over time. The goal is to set up a system that is easy and works for you so that it becomes something you can stick with in the long term.

If you prefer to go low tech you can also buy a budget planner. Budget planners are inexpensive and will help you figure out what the future of your money looks like.

Start Budgeting

The new year is just around the corner so don’t wait, make sure that you start planning early how you will manage your finances in 2022. Starting early is a good way to ensure that you get a head start so that you will be up and running with your budgeting goals as soon as new year begins.

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