Budgeting for beginners: A new year could mean you’re starting to plan new goals. And for some, that means how to better deal with finances. If you’re saving up for something big in the future, budgeting might be a new area you’re starting to explore. So, why is budgeting important? Our expert, Stephen Collie the Consumer Banking & Investments Regional Executive for Bank of America, shares a few tips to get us on the right savings track.
Tip #1: Your bank can help you set money aside each pay period
Start by prioritizing your savings. If you’re like me, remembering to set aside money each pay period to put into your savings is challenging. Your bank can actually work with you to split parts of your paycheck into different accounts automatically. That way you don’t have to set a reminder to set money aside every pay period! Your savings account will start to grow.
Tip #2: Set your goals now and adjust later – don’t wait!
If you’ve got a bigger financial goal in mind, Stephen says one thing is important: don’t procrastinate! Set a reasonable goal in the beginning, knowing you can always increase those goals later on in the year. Don’t set goals that are unachievable in the first month of the year. That’ll throw you off track!
Tip #3: Go into the New Year with a refreshed mindset
It’s a fresh start! Stephen says take a look at your budget from last year. What worked? What didn’t work? Use that as a starting point to help you plan for a new year.
Need more advice? Here are more tips from Bank of America to help get you started. Happy saving!