We understand that it can feel overwhelming, but budgeting doesn’t have to be complicated. Whether you’re new to budgeting or rededicating after a break, a few simple tips can help you feel more confident and put you in control of your money. With the right tools and information, building a budget can be quick, easy, and tailored to your specific goals.
Review and compare your income and expenses
Start by tracking your expenses for three months, which is the typical rule of thumb according to most budgeting experts. This gives you a picture of your current spending habits. Review your checking account and credit card statements to understand where your money goes. If three months of tracking feels daunting, start small and review.
Ideally, you’ll discover your income is more than your expenses. If you’re spending more than you’re bringing in or breaking even, now’s the time to make adjustments. Look for ways to supplement your income, or areas where you can save. A little breathing room in your budget feels great and allows you to build up your savings over time.
Assigning dollar amounts to expense categories
Separate your monthly expenses into categories. It’s recommended to be as specific as possible. But even broad categories are helpful. For example, instead of separating your expenses for groceries, work lunches and dining out, you can set a larger number for all your monthly food expenses.
Next, take a look at your spending habits. Use what you learn to assign dollar amounts to each category, including fixed costs, flexible expenses, and savings goals. This step can reveal opportunities to adjust your spending—especially if your expenses are outpacing your income.
Use technology
There’s no shortage of clever apps and other digital tools that can make it easier to manage your budget. Tools like our Golden 1 Mobile app and Online Banking help you create and manage budgets, track your spending, and set up automatic notifications when you spend more than your budgeted amount in any category. For extra guidance, check out our Learning Lab Budgeting Tool, designed to help you set up your goals and keep things on track.
Test different strategies
Some people like to keep things simple and stick to old-school methods, like the cash envelope system. With this approach, you take out cash at the beginning of the month and divide it into envelopes for each spending category—like groceries, gas, or fun money. It’s easy to see how much you have left: when an envelope starts running low, you know it’s time to slow down spending in that area.
Review and adjust
Even once your budget is up and running, you’ll want to review it regularly. The good news is that you can adjust easily when you have a well-formulated budget.
Budgeting may feel tricky at first. But it doesn’t have to take a lot of time or be overly complicated. At Golden 1, you also have access to a variety of financial wellness tools to help you improve your money management skills.
Join Golden 1 Today
When you belong to Golden 1, you’re part of a community built by members, for members. We offer all the banking services you expect with exceptional service and low to no fees. Join us by:
- Applying online
- Calling 1-877-465-3361
- Visiting a Golden 1 branch near you
