Simple

January is a good time to establish a one-year plan if you want to think more about your own spending than it is now. This means outlining how you want to spend money, where to reduce it, and where you want to save money for any major purchase or event. “Making a budget is a good way to help you plan these things,” said Urmilla Lagawan, Director of Consumer Deposits at Wells Fargo. “Once you know where your money is going, you can find a real place in the budget, where you can cut expenses and make room for emergency funds, savings and even investments.”
What to do now?
Scroll through your personal calendar or financial plan and write down upcoming trips, activities, major shopping, etc. Anything you may need to save money. Classify according to what is most urgent, important and what can be expected. Just paying attention to what you care about can motivate you to find funding.
Is there any extra time?
Find out where your money is going so you can look for adjustment opportunities and save money for greater expenses or savings. Just focus on your last month’s expenses. You don’t have to count every penny. Instead, think about the category. Track your expenses like this:
Last month’s bank and credit card statement.
Add up all your expenses this month.
Divide these expenses into two categories: necessities – absolute necessities to survive, such as food, accommodation, transportation, electricity, and insurance, and necessities – things you care about but can’t use, such as monthly subscriptions, memberships, entertainment, meals out of home, and travel.
Do you see any trend? Take a closer look at these needs, because there you can “find” funds to achieve the goals that are approaching this year.
Professional advice
There are a variety of budget management applications and online tools that can help you get organized and stay on track. For example, Wells Fargo customers can use my Spending Reports and Budget Remarks to automatically capture every deposit, purchase and payment they make with their Wells Fargo credit card, debit card, check and bill payment. Some credit card companies will even give you an annual report on where your money is spent. You can set your own spending goals and budget and track your progress over time.