Do you have many goals for 2025? Making New Year’s resolutions can be easy, but sticking to these resolutions can be far more challenging. One resolution that can help you in the new year is establishing a strong financial foundation by building a budget. Budgeting is an essential piece of your financial foundation because it enables you to know how to lower expenses, how to spend less, and how to save more. This all-around assessment of your finances can help you see what actions you need to take to improve your financial stability.
While sticking to a New Year’s resolution can be daunting, it isn’t impossible. It will take discipline and time to change your current habits and create new ones, but there are a variety of strategies and resources that can help you along the way. Remember, the first step in your financial journey is to start.
When starting your financial journey, you can be overwhelmed with knowing which financial goals take top priority in your budget. You might have debts you’ve been wanting to pay off, a trip you’ve been dreaming of going on, or you’re in need of a new car. Whatever goals you have in mind, you must be able to set the record straight about which ones are absolutely necessary.
While planning for discretionary spending is fun and exciting, putting what you need first before diving into frivolous spending goals is crucial. There is nothing wrong with wanting to be able to afford a spur-of-the-moment shopping trip or a last-minute weekend getaway, but it’s important that you can have enough money for your necessities first. Think of it this way: if you can’t pay off your debts or overspend on groceries, you won’t have enough money to travel or pay for an evening out. By keeping your priorities in line, you are helping yourself to excel in every area of your financial health by ensuring that your finances are growing.
Necessary Spending Includes:
Discretionary Spending Includes:
When setting a financial goal, you need to have a general idea of the final cost. This number will help you know how much you need to spend every month and figure out any interest you could earn while waiting. If you’re unsure how much to set aside, use a financial goal calculator to narrow your goal to determine your need.
Did you know you are 95% more likely to reach your goals with an accountability partner? Financial goals are no exception. Having someone to walk with you as you work to improve your financial health is essential to your success story. While seeing a financial counselor is a significant first step to help you plan how and what you need to do to reach your goals, asking a trusted friend or loved one to keep you accountable throughout your journey is a great way to keep you motivated.
One of the best ways to know if you excel in your financial journey is to have access to your finances 24/7. This could be through online banking with your financial institution or mobile apps. As you begin to access your finances with a touch of a button, you can check on your budget and any other information on the go, so if you’re out shopping or wondering how you’re doing on your savings goals you can check immediately. Here are some features you should set up to help you manage your expenses regularly.
Having these features ready for when you begin applying your budget to your everyday life can help you maintain consistency in your financial choices. It will take time and patience to build the skills you need to stay diligent, but with some practice and financial wellness tools, you’re already on a better road for your financial journey.
Since having the discipline to follow a budget can be tricky to learn, having resources to help you along the way can be beneficial. There are a variety of apps that you can download on your phone to assist you. Below are some financial apps and their features that you can choose from to help you maintain a realistic budget.
While most of these apps are free, some might charge for extra features depending on what you are looking to use. Keep this in mind when deciding which one you think will work best for your financial goals.
Budgeting is so impactful for every aspect of your life because it affects what you can and can’t financially afford to do. Since protecting your budget is essential, you must be aware of potential threats that could hinder your ability to carry it out. The best way to protect your finances is to establish an emergency fund. An emergency fund is a separate savings account you don’t use unless you are in a critical situation, such as a medical issue or natural disaster. This fund lets you know that you have a financial cushion in case some unplanned expenses occur, and it can protect you from disrupting your budget.
Are you ready to stick with your budget all year long? The Financial Champions at Leaders Credit Union are happy to help you with your financial goals and journey. It can be a challenge to stick with a new habit of budgeting, but our team is equipped to guide you in the right direction towards financial freedom. To learn more about how to create a budget, check out our free Smart Budgeting Toolkit.
Leaders Credit Union is federally insured by the NCUA.