Simple Budgeting Tips

We don't often think about our financial health when we consider our overall health, but it plays a significant role. It's also an area that many of us can improve on, but it can feel overwhelming. Here are 7 simple tips to help you improve your budgeting skills.

1. Determine your monthly income. This is an important first step in determining the rest of you budget. You'll want to take into account all sources of income you receive in a month—salary, interest income, alimony, child support, etc. This may require some calculations based on your pay frequency. 
2. Determine your monthly expenses. Calculate all your monthly expenses, no matter how big or small. This can include rent, utilities, insurance, memberships, etc. Again, you may need to do some calculations to determine each expense per month. Do your best to categorize each of these expenses; this will help when making adjustments to your monthly budget. 
3. Keep a balance sheet. Using a balance sheet can help you see exactly where your money is going. You can track on paper, computer program, or mobile app—whatever works best for you. Make sure you record each expense, even the $4 coffee, and then group it into your more broad categories, such as food. This will help you see where you may be able to cut back. 
4. Make it a routine. The hardest part of budgeting can be creating a habit of tracking each income and expense, especially when it comes to little purchases. Carry around a small notebook with you or use a basic app on your smartphone. You can then transfer all the information to your balance sheet at the end of the day or week. This will also help you be more aware of your spending habits. 
5. Figure out what you can save. Now that you're keeping track of your money, you know exactly how much is being used by each pay check. Determine how much can be put into a saving accounts. This doesn't have to be a lot, and may vary from month to month. You could even set up different savings accounts such as retirement, car, or vacation. This will help you prepare for emergency situations or save for special occasions without having to tap into your entire savings. 
6. Make adjustments. The best thing about making a budget is that it's yours and you can make changes. If you want to increase the amount you save, look at where you're making unnecessary purchases. Are you buying a fancy coffee when you could brew some at home? Maybe you're doing really well and can start thinking about buying a home. You won't know if you don't start tracking.
7. Envision your future. What do you want your future to look like? Take the time to think about this question, and set some goals. Use your budget to make necessary adjustments to achieve these goals.

Free Online Tools and Resources

As a PacificSource member, you can access CaféWell, an online health engagement portal. To get started, sign into InTouch. Then, go to Benefits, and select Wellness - CaféWell.

Visit CaféWell to:

• Complete the health assessment to identify your potential health risks.
• Get your health and wellness questions answered by an expert health coach.
• Connect with coworkers, family, friends, and others with similar health goals.
• Access helpful tips and articles on health and wellness.