17. Budget better
As holiday spending winds down, the New Year is the perfect time to take control of your personal finances with a personal budget.
And the first step — according to Joseph Motisi, a financial adviser at ARMCO Credit Union — is a simple one.
“When it comes to a budget, diligence is the most important part of a budget,” he said. “You can make any kind of plan, but if you don’t stick to it, you won’t succeed.”
Motisi said the most important parts of budgeting in the new year are setting clear goals and “personalizing your finances.”
“Name your accounts what they are for,” he said. “For instance, if you have a savings account for a vacation, log into your online banking and nickname the account ‘Vacation 2024.’”
Motisi also recommended setting future dates and notifications for saving goals in a personal calendar or computer.
“When you see your finances as an extension of you — as something more than just a savings account or budget — then you are more likely to stick to the plan,” he said.
Motisi said he shares a guide of “Budget Tips” with clients, beginning with “recording information on past cash flow, both income and spending.”
“Paycheck stubs, check registers, canceled checks, copies of paid bills and recent income tax returns are excellent sources of this information,” according to the guide. “An individual may also want to keep a daily spending diary for a short period of time.”
His guide emphasized the importance of budgeting as both a “planning tool” and “a yardstick to measure progress.”
“The personal budget is often the first thing I discuss with clients when we meet,” he said.
