Getting your finances back on track can be a overwhelming. First Independence Bank provided a few expert budgeting tips to help you meet your financial goals and establish long-term financial security.
Try to track all of your spending for one month so you have a clear picture of where your money is going. If you can’t track for a whole month, don’t worry – even a few days can be eye opening.
Needs vs. wants: After you know where your money is going, you can decide what you really need versus what you just want. First, put your spending into one of the three categories below then think about how you can modify a few of them.
- Fixed essential expenses – Necessary expenses that are the same every month. This includes your mortgage/rent, car payments, student loans and insurance.
- Variable essential expenses – Necessary monthly expenses that might cost a little bit more or a little bit less each month. This includes things like gas, groceries, utilities and cell phone bills.
- Non-essential expenses – The other things you don’t necessarily need, such as eating out, going to the movies, daily trips to a coffee shop etc.
Changing non-essential spending habits can help you start decreasing your debt. Change variable fixed expenses by shopping around for less expensive car insurance, switching to a more economical cell phone provider, or taking public transportation.
Set savings and debt payoff goals.
Track your progress.
Visit https://www.firstindependence.com/ and check out the home budget analysis tool, retirement planner, or savings calculator to help create a budget that is manageable and will serve you well into the future.
First Independence Bank, Member FDIC, Equal Housing Lender