Getting Started with a Budget

Whether you’re motivated by new life circumstances or just want to be more financially mindful, getting started with a budget can seem daunting. There are lots of resources out there to jumpstart your budgeting journey, but here are just a few of the basic principles.

Step 1: Begin with the end in mind. This is where budgeting gets fun and the why of budgeting begins! Are you wanting to save up for a vacation? Do you want to retire by a certain age? Do you want to pay off a loan by a certain date? Do you want to buy a house or donate to a charity regularly? Once you find your goal, figure out how much you’ll need to save to achieve those goals. Many financial planners recommend the 50/30/20 model, which just means 50% of your income goes to needs, 30% to wants and 20% to savings. If donations are important to you, you can play around with those ratios until it fits you!

Step 2: Figure out what you make each month (minus taxes). If you and your spouse share incomes, then add them together. This is your total monthly income.

Step 3: Find out how much you already spend. You can split this up into “fixed expenses,” or bills that don’t change from month to month (i.e. mortgage or rent, student loans, car loans, etc.) and “variable expenses,” or bills that change, like utilities, gas, groceries, personal care, etc.

Step 4: Set up a system of tracking expenses that’s easy and works for you. Golden Coil has pages dedicated specifically to budgeting. You can add the Budget page to the beginning of each month to easily see your income. There’s also a box to jot down goals, so you can keep the why at the forefront of your mind.

The Expenses page helps you keep a running list and total of what you’ve spent. Writing it out is a great way to stay on budget, because you’re more mindful. Instead of getting lost in an online bank statement, all purchases are right there in front of you!

Budgeting is all about what’s coming in and what’s going out. Golden Coil can help you keep track of both in one, easy-to-see place. Armed with your planner, a vision for the future, and a little consistency, you’ll be well on your way to budgeting success!