You’ve heard the old phrase a million times—”a place for everything and everything in its place.” This maxim doesn’t just apply to keeping household clutter at bay, though. Every dollar you earn deserves a designated place. Budgeting and saving are really as simple as ensuring that all your money serves a specific purpose. However, the benefits these financial tasks provide go well beyond the basics. Here at Landmark National Bank, you’ll find the budgeting tips you’re looking for and associates in bank branch locations near you who can help.
Why is budgeting important?
No matter how much or how little you make, allocating every dollar to a category can help you reach your financial and life goals. Budgeting takes the guesswork and stress out of money management. It also offers the following benefits:
- Aids in avoiding debt
- Helps prevent overspending
- Is instrumental in planning for the future
Budgeting can even provide a new perspective on money. You’ll get a birds-eye view of how much money you have and where it all goes each month. This new vantage point will even give you a better idea of where your priorities lie from a financial standpoint.
What is a balanced budget?
You might be aware of this term in the context of government spending. However, personal finances can also benefit from a balanced budget. Basically, it boils down to having at least as much money coming in as you have going out. While making more money definitely helps you achieve a balanced budget, managing your finances is essential. Here are some ways to get started:
- Open a no-fee or high-interest checking account
- Choose a budgeting app, program or workbook
- Make funding your savings account part of your routine
These small steps will help you get excited about taking control of your financial health. They make it easy to build momentum and find more ways to work towards an exciting, abundant future.
What is the 50/30/20 principle?
If you don’t know where to begin your budgeting and saving journey, consider using the 50/30/20 principle. More of an approach to money than a strict plan, this concept allocates 50 percent of your money to needs, 30 percent to wants, and 20 percent to financial plans.
The majority goes to house payments or rent, utilities, and other necessities. Just under a third is assigned to budget categories like entertainment, eating out and traveling. The final fifth can include socking away money for a down payment on a house, contributing to your retirement plan, or any other form of savings.
While there are books about the subject, you’ll find no shortage of free 50/30/20 rule spreadsheets to help you get started.
Customized Budgeting and Saving
Whatever your style, there’s a budgeting solution for you. From apps and software to 50/30/20 rule spreadsheets, choose a format that suits your style. Once you’ve chosen a method, establishing and maintaining a budget is easier than you might think. You’re in charge of where your money goes, so you can create whatever categories you like—think weekly movie nights, saving for vacations or dining out monthly—to ensure that you’ll stay on track.
Budgeting is also flexible. You can shift money between categories as needed, with the caveat that you should leave your savings category alone.
Budget With Landmark National Bank
Budgeting and saving provide peace of mind, help you plan for the future, and reduce the likelihood of taking on more debt. Taking action also helps you focus on reaching your short- and long-term goals.
Landmark National Bank has the financial tools you need to stay on-budget, from interest-earning checking accounts and mobile banking alerts to a debit card that rewards you for banking with us. Stop in at your local Landmark National Bank location, or open an account online today.The content