Everyone has a different financial goal. Some people look to the future, like saving for their dream home or investing long-term in their retirement. Others live more in the moment, looking to seize the day without exhausting their funds. Many people are working to pay down debts they incurred in the past. For most of us: It’s a mix of all the above.
The string that connects all these financial goals is stability — living the lives we want for ourselves and our loved ones without fear of falling too far into debt. And the foundation of every financially stable household is a budget.
Simply put, a budget is a plan based on how much money is coming in and how much is being spent. But it’s much more than two columns on a spreadsheet. A well thought out budget is the key to building savings, boosting credit, and eliminating debt. It’s also an anchor you can rely on in times of trouble and turbulence.
And with new technology, like mobile banking and budgeting apps, you have the power to monitor your spending and track your household finances in real time.
Of course, a budget looks different for every individual and family based on their unique circumstances. But the steps to building out a budget is pretty much the same for everyone.
Assess your finances — Look at your income now and for the foreseeable future — be sure to include all streams of revenue, including side hustles and gifts. Then make an exhaustive list of where that money goes each month, including necessities like rent or mortgage payments and utilities and nonessential expenses like trips, subscriptions, or nights out on the town.
Set your goals — Decide what you want to do with your money. Maybe that’s setting aside a certain amount for savings or investments. Perhaps you have a big-ticket item you want to eventually splurge on. Or maybe the goal is just to pay down your student loan or credit card debt. Prioritize your wish list and figure out exactly how much money you need to make those dreams a reality.
Adjust accordingly — Hopefully when you assessed your income and expenses, the former was greater than the latter. Even if it isn’t, here is where you take a hard look at your expenses and decide exactly what is a necessity and what you can eliminate or cut back on to put more money toward your goal.
Keep an eye on the future — Whether your goal is to pay down debt or buy a boat, don’t lose sight of the long view. Make sure you are getting the most out of any workplace retirement plans or pensions, and consider investments and interest-bearing accounts that can put your money to work for you. This will help you prepare for any emergency that looms on the horizon and/or your retirement.
Get some help from a community bank — Building a budget can be difficult, full of hard choices that can have a serious impact on your future and that of your loved ones. Fortunately, you don’t have to make these decisions on your own. For instance, Adirondack Trust Company has been helping people in and around Saratoga and Glens Falls manage their personal and business finances for more than 120 years.
With a community bank, you have a partner who understands your needs and cares about your financial wellbeing. They are your neighbors; their kids go to school with yours. And they want you and your business to succeed because it makes the community stronger.
At Adirondack Trust, the staff also has roots in this place, giving them extensive knowledge and experience in the area. And customers enjoy the bank’s responsiveness, consistency, and local decision-making. When you call Adirondack Trust, you are connected to a live person who works and lives in the same place you do.
But just because Adirondack Trust is built on tradition and old-fashioned customer service, that doesn’t mean they are behind the times. The bank recently upgraded its WebWise Online Mobile Banking platform, giving you access to your accounts at all times from the comfort of your home and the convenience of your laptop or smartphone. WebWise also includes a host of money-management tools that can be personalized to help you visualize your cash flow. The app can help you create your budget and stick to it, empowering you to take control of your money; pay down debts; pay bills; and monitor your credit, investment portfolio, and net worth.
And the app is free with any Adirondack Trust savings or checking account.
To speak with one of your neighbors at Adirondack about budgeting and setting yourself up for future financial success, visit www.adirondacktrust.com. Member FDIC.