Start 2015 on Budget

January 20th, 2015  

By Craig Gocken, Vice President Onarga Facility

How a Budget Can Help You. A new year has just begun, which motivates some people to take a fresh look at their finances. Maybe you have financial goals you would like to achieve or are adjusting to a change in expenses or income. Whatever your circumstances, financial experts agree that a budget is a helpful tool across the board. If you are unconvinced that it is worth the time and effort to create a budget for yourself or your household, consider these specific ways a budget can help you:

Helps you know. A budget compels you to really look at your actual spending habits. Before really looking at the numbers, we can tend to over- or under-estimate certain categories. Creating a budget give you a true picture of both your obligations and your discretionary spending.

Helps you decide. Once you have the facts about your actual income, your actual mandatory expenses, and your actual spending history, you are able to see your choices more clearly. You can look at your values, your preferences, and your goals for the future to decide where you want to spend the money that you earn.

Helps you focus. Income and expenses may not vary much from year to year, but sometimes our goals will dictate a different focus in your budget. For example, you may want to get out of debt this year. Or you may be preparing for a child to enter college in a few years. A budget allows you to focus on these kinds of goals and make the appropriate adjustments to other areas of spending.

Helps you control. Most of all, a budget gives you control over your finances. Instead of just buying on impulse or reacting to each bill that comes in the mail, you are actually able to plan for known expenses and even save for the unexpected ones. You can compare your actual spending to your budget to see areas where you can make cuts or be more disciplined. In short, a budget puts you in the driver’s seat of your finances.

Yes, 2015 can be a great year for you financially, and you can get off to a great start by making a budget!