EMPLOYEE RESOURCES

Budgeting isn’t just for accountants—it’s a powerful tool that can help anyone take control of their money and reduce financial stress. Whether you’re saving for a big purchase, trying to pay off debt, or just looking to make your paycheck go further, a solid budget is the foundation.

Why Budgeting Matters?

Creating a budget helps you understand where your money goes each month. It’s easy to lose track of spending without a plan, and that’s where people often run into trouble. Budgeting allows you to set priorities, avoid unnecessary expenses, and build up savings for emergencies or goals.

Simple steps to start

1. Track Your Income & Expenses
   • Write down what you earn and everything you spend money on—bills, gas, groceries, entertainment, etc.
   • Pro Tip: Save your receipts in a Receipt organizer. It eliminates remembering to write the expense down.
2. Separate Needs from Wants
   • Focus on covering your essentials first, then decide how much to spend on extras like eating out or hobbies.
   • Pro Tip: When you’re unsure if something is a “need” or a “want”, ask yourself: “Can I live or work without this?” If the answer is yes, it’s likely a want. Prioritize needs first—like housing, food, transportation, and insurance—then see what’s left for extras.
3. Set Monthly Spending Limits
   • Once you know your averages, create realistic limits to stick to in each category.
   • Pro Tip: Use the following percentages as a starting point, if you don’t know how much you spend on areas:
     • Savings | Up to 15%
     • Housing | Up to 35%
     • Food | Up to 15%
     • Transportation | 10%
     • Utilities | 10%
     • Health & Medical | Up to 10%
     • Insurance | Up to 25%
     • Miscellaneous | Up to 5%
     • Personal, Entertainment, & Recreation | Up to 20%
     • Giving & Charitable Gifts | Up to 10%
     • Debts | Up to 10%
4. Plan for Savings
   • Even small amounts add up. Try putting aside a little from each paycheck into savings, even $10 or $20.
   • Pro Tip 1: Automate the process. Update your payroll method, so that $10, $20, or $50 each payday is going directly to your savings account. The gold rule is, if you don’t see if you won’t miss it and you’ll be less tempted to spend it.
   • Pro Tip 2: Establish separate dedicated savings accounts for larger irregular expenses if you are not well disciplined. Examples: Vehicle Maintenance (Oil Changes, New Tires, Wheel Bearings, etc.), Christmas, Veterinary Bills, Home Repairs and Maintenance, Vacations, etc.
5. Review & Adjust Regularly
   • Life changes, and so will your budget. Make it a habit to check in on your spending each month.
   • Pro Tip: Pick a consistent day each month—like the first Sunday—to review your budget. Look for patterns in your spending and update your plan if you got a raise, lost hours, or had an unexpected expense. Staying flexible keeps you on track longer.

Tools to Help

Budgeting doesn’t have to be complicated. You can use:

• A basic notebook or spreadsheet
• Financial Peace University Budgeting Forms & Debt Snowball
• Free budgeting apps, like EveryDollar
• Bank-Provided Tools through your online Banking App.

Budgeting can give you peace of mind and more freedom to enjoy life—without the worry of living paycheck to paycheck. Start small, stay consistent, and watch your financial confidence grow.

Click here if you would like more information about Financial Peace University and classes near you.