Resolve to Get Your Finances on Track

The holiday season is often filled with food, family and more than a few bills. If you’re like many people who made a New Year’s resolution, improving your financial health is on the list. Making a budget is a good place to start. Here are some tips to help you put a budget together and stick to it.

1. Distinguish between needs and wants. Understanding the difference between wants and needs is key to keeping a newly created budget on track. Needs are the necessities, such as food, clothing, shelter, insurance, gasoline, and rent or mortgage payments. These should be the first things that any budget addresses, and then, space permitting, add the wants.

2. Include all expenses. A key pitfall of many budgets is tracking only month-to-month expenses. This mistake can turn out to be quite costly, as there are often additional expenses such as car or house repairs that don’t occur on a monthly basis. Those expenses can show up without warning and derail your budget when they do. To be prepared, take into account all the expenses that could appear over the course of a year. Total them up and use that figure to calculate monthly savings goals. This way the budget will include all needed expenditures and help you plan ahead for the unexpected.

3. Stay within the budget limits. Self-discipline and tracking all expenses are important keys to building a good financial future. Splurging on items without first budgeting for them is a recipe for debt that can quickly spiral out of control, so train yourself to mind your budget.

4. Budget for entertainment. Entertainment may seem like an unnecessary expense. However, everyone needs some time off for fun, and planning ahead makes you more likely to avoid a splurge. Once all your needs are covered, set aside funds each month for entertainment. Renting movies or signing up for online video streaming services are budget-friendly ideas. Even better, check local community calendars for free things to do. Having fun makes sticking to a budget a little easier.

5. Use cash or checks to manage spending. Using credit cards can increase the risk of accidentally overspending, as you may not be aware of your spending until the monthly statement comes in. Using checks helps you keep track of your available balance. Additionally, the psychological impact is greater when you hand over physical cash or write a check instead of reaching for a card, which may help you spend less. Watching your money supply dwindle over the course of a week drives home how much you really spend, and on what.

Checks are still a good payment option. Costco Services provider Harland Clarke has many check designs and accessories available. Costco members save an average of 50% off typical bank pricing.* Harland Clarke features a large collection of high-security personal and business checks with security features to help protect you from check fraud. For more information, visit CostcoChecks.com or click here.

*Bank pricing is based on Shoppers’ View survey of national financial institutions in November 2021. Prices subject to change. Service is provided by Harland Clarke.