How to Start a New Year Budget That Works!
Setting a budget for the new year is a fabulous idea. However, you need to stick to it throughout the entire year to make it worth your while.
Even though it seems like a daunting task, we're going to break it down step-by-step to help you make the budget that you've been dreaming about.
Step One: Create an Outline
‘Nah, that’s too much work for me…I keep my budget in my head!’, you might say. The problem is that you're working with complete estimates unless you have a visual representation of numbers.
The first step to creating a budget is to create an outline. Grab a pen and paper, open a Word or Excel document on your laptop and create a table or a chart. Tables and charts are easy to read and don’t require much time to make. Thus, you will also have something to refer to later.
Step Two: Review Your Spending and Income from The Previous Year
Take your time analyzing how much money you spent and how much of it you made last year. Make notes of the numbers you failed to achieve. Don't forget about the debts that you have to pay off this coming year as well.
Reflection is a key to success! Keep this rule in mind when creating your budget.
Step Three: Put the Numbers into Your Table
Now, put the numbers into your table. Make sure to include the income of all employed family members. If you receive any benefits, include them as well. You can leave out any expected bonuses your company provides, since this counts as a "windfall" and not your regular income.
Then, write down your expenses. Include everything from car payments, rent, food, childcare to credit card payments. It's a good idea to separate your weekly, monthly, and yearly payments by dividing them into different categories.
Before you move onto the next step, sum up your expenses. You need to ensure that your income exceeds your expenses.
Step Three: Budget for Unexpected Expenses
Unexpected expenses will happen, unfortunately. So, it’s better to budget for small, unforeseen scenarios as well. That way, you won't fall flat on your financial face when an emergency strikes.
Step Four: Budget for Savings
Saving money is a key to financial security. Regardless of how insecure you are financially at the moment; you should always set some money aside.
There’s always something people strive at achieving and purchasing. Whether it’s a new gadget, a house, or a new car, savings can help you achieve your financial goals.
Step Five: Find Ways to Cut Your Expenses
The trick here is to find the things you can go without. This way, you'll be able to have more disposable income to save or do whatever you want with it!
Step Six: Review It Each Month
Budgets aren't static. This is the main thing that people tend to forget. When you make your budget for the New Year, you'll need to review it at the end of each month. Why? Because then you will be able to make any necessary adjustments and analyze how well you’re budgeting.
How to Budget for Emergencies: Use a Title Loan
No matter how thoroughly you budget your finances, unexpected things happen. Whether they are unforeseen medical bills, car repairs, or home maintenance expenses, they are out-of-pocket expenses.
What Are Title Loans?
Title loans are short-term loans that can help you survive a rough financial patch. They're a great solution for those who have good, bad, or even non-existent credit scores.
What Are the Benefits of Title Loans?
- It takes as little as 30 minutes to apply
- You can keep your vehicle while you're paying off your loan
- It doesn't matter if you have good, bad, or no credit score
- You don't need a checking account to qualify.
How Do You Apply For Title Loans?
- Go to the New Mexico Title Loans homepage.
- Fill out the application form. This should only take a few minutes.
- Turn your phone on. A representative from one of our locations in New Mexico will call you back to confirm the information you provided and provide the list of required documents (your car, clear car title, and government-issued ID).
- Head to your nearest New Mexico Title Loans location. You can also Google title loans near me for the best search results. Make sure you bring all the necessary documents.
- When you arrive, a loan expert will look at your documents and inspect your vehicle. It should only take 5 minutes or so.
- As soon as you're approved, you will get your money on the same day.
It is really that simple! There’s no catch, no hidden charges. Just always keep in mind that the cash you get from the title loans is not meant for frivolous expenses but for emergencies – and you’re good to go! Apply for a loan today.
Note: The content provided in this article is only for informational purposes, and you should contact your financial advisor about your specific financial situation.