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1. If you have never done a budget before, one of the places to start would be to look back at your spending over the previous three months to help determine your average monthly expenses. If you currently use a budget, it might be a good time to verify if it is still relevant or if it needs to be updated.

2. Write down your monthly income and categorize all your expenses. Create categories that make sense for you.  Some examples of categories could be:

Household (Mortgage/Rent, Real Estate Taxes, Home Insurance)

Utilities (Electricity, Gas, Water, Phone, Internet, Cable)

Food (Groceries, Dining Out)

Transportation (Auto Loan Payment, Gas, Repairs, Auto Insurance)

Personal (Clothing, Entertainment, etc.)

3. Once you have determined your average monthly income and expenses, now you can create your budget.

Start with your monthly income and subtract your expenses for the month. It is a good idea to start with the expenses you know you will have, such as loan payments, rent, utilities, phone, etc. Next allocate how much you will spend on the remaining expenses. Is there a category you are spending more than you realized and could reduce your spending going forward? It is also important to put a little into savings each month for any unexpected emergencies and/or to prepare for retirement.

Now you have your budget set up. Check your expenses each month going forward to ensure you are staying on track. Also, as things change, such as income or loan payments, don’t forget to update your budget.  You don’t want to be saying to yourself a few months into the new year, “where did I spend my money?”

TIPS & IDEAS

Now that you know where your money is going each month, here are a few other ideas to consider:

Do you have your paycheck automatically deposited into your account? This will save time and reduce the hassle of making a deposit. If you still receive a paper check, are you utilizing mobile deposit? This would allow you to make a deposit without having to drive to your financial institution.

Do you have your loan payments set up to be automatically paid? This will eliminate the need to remember to make your loan payment each month. Some types of loans allow you to set up monthly, weekly or bi–weekly payments to coincide with your paycheck, so they work for you and your schedule. 

Did you know it is possible to create multiple savings accounts at your financial institution? You could create a savings account for an emergency fund, the vacation that you want to go on or the major purchase you are looking forward to. This is a great way to separate your savings from your everyday spending or checking account.

Have you checked to see if your financial institution allows you to have deposit splits? When your paycheck gets automatically deposited, you could have a certain amount of money deposited into your different savings accounts, with the remainder going into your checking account. Also, depositing a little money each month into a savings account or an Individual Retirement Account (IRA), can really add up over the course of a year. ($50 every other week would be $1,300 a year)

Do you have any alerts set up on your account or VISA® card? You can set up alerts to let you know when a loan payment is due, when you have a low balance or when various transactions have occurred. You can also set up alerts on your VISA® debit or credit card to notify you via email or text on certain transactions, based on the criteria you set.

Dakotaland Federal Credit Union offers its members a mobile app that provides the ability to make inquiries, mobile deposits, transfers, loan payments and many more features. 

Stop in to your local Dakotaland Branch location to see how our mobile app could benefit you.