The Mortgage Corner with GreenState Credit Union: October is Financial Planning Month!

Did you know that October is Financial Planning Month? If you haven’t taken stock of your finances lately — specifically your household budget — it’s the perfect time to do so. A good household budget can help you better manage spending and save for your financial goals, like buying a home, paying off debts, or even just taking a much-needed vacation.

Are you ready to update your household budget this month? Take these steps:

1. Know your after-tax income. Before you can create a smart budget, you need to know how much money you’re bringing in each month after taxes. This will, of course, include your salary, but any extra income should be considered as well (for example, freelancing, pet sitting, craft sales, etc.).

2. Determine your budgeting strategy. There are several common methods for budgeting. The 50/30/20 plan has you set aside 50% of your income for needs, 30% for wants, and 20% for savings or debts. The zero-based budget helps you determine how to spend without any leftover money, and the envelope system is a way to physically split your income (in cash) among your expenses with labeled envelopes.
   
   

3. Have a plan for your money. Once you pick a budgeting approach, determine how your current spending fits into your strategy and what adjustments you’ll need to make to stick to it. Map out your expenses from the last few months to see how they align with your new goals. You may find that you’ll need to cut costs in certain areas and increase your spending in others.
   
   

4. Create a system for tracking progress. Will you have a monthly meeting about money? Use budgeting apps on your phone? Create a household spreadsheet? Figure out how you’ll monitor, track, and adjust your budget over time so you’re more likely to stick to the plan.

For additional information please contact one of our lending partners at GreenState Credit Union at www.greenstate.org/mortgage

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