It’s that time of year again where everyone is talking about change and New Year’s resolutions. As many people already know, resolutions are easy to make but can be very difficult to keep. When it comes to your money, it is the same situation.
Every year families and individuals in Wisconsin try to make a realistic budget that will help them live comfortably and happily. But throughout the year, things change and unexpected expenses can occur and instantly change how you spend your money.
There are some quick tips, however, that can help you get a better hold on your money in terms of planning for the future. For starters, when people talk about planning out a budget they oftentimes don’t write it out.
It’s not good enough to estimate and have a general feel for your cash flow. Write down your specific amounts, and when it comes to predicting bills that are in constant flux, error on the high side so you’ll always be covered.
After everything is written out, the next step is agreeing with the items on the budget itself. If you are married, talk to your spouse and make sure you both agree on the expenditures, both those considered necessary and the funds allocated for fun. If money gets tight, you don’t want to breed contempt because one of you bought something the other person didn’t feel you needed.
The next step is looking at ways to cut. No one wants to do that, but there is always at least one area that could be limited or eliminated. A little self-sacrifice can go a long way when planning your budget.
Finally, try to keep a little money back. Some Wisconsin families live paycheck to paycheck, so the idea of trying to save money at the same time seems unrealistic. But even a little bit thrown into a savings or retirement account could really help you out of a jam later in life.