It’s a New Year, Don’t Forget to Create a New Budget!
Have you been using the same budget for the past year – or for even a longer period of time? Having a budget is better than have no budget, but an outdated budget isn’t doing its job as well as it could be! Since it’s a new year, now is a great time to sit down to not only review, but also adjust your current budget and here’s why:
- Your spending habits change. Throughout the year, you may have decided to give up that expensive morning coffee, or you may have started spending money on things that aren’t in your current budget. When budgeting, it’s essential that all data you’re putting into it is honest and accurate.
- You may have taken on new debt. Did you get a new credit card, buy a home, or a new auto? If you bought a new home or auto, did you remember to include costs such as insurance and maintenance into your budget? Oftentimes people will remember to put the big costs into the budget, but will forget about the smaller associated costs with a new purchase.
- Your software may not be the best for your situation. When you first started using budgeting software, whatever you picked to start with may have fit your lifestyle then, but does it fit now? As technology has advanced and people have become busier, it’s a good idea to use software that you can access from anywhere to make things easier.
- You may have had a major life event. If you’ve become a parent, started a business, lost a job, or gone through any other major changes in your life, you have additional costs that need to be added into your budget.
Life changes and so should your budget! Whether you’ve gone through small changes over the past year, or you’ve gone through major life events, a budget will work best when it’s kept up to date and when it’s 100% accurate. The new year is a good time to do a little budget upkeep because it’s a time when a lot of people decide to make new financial goals, but whether you choose the new year, or some other time, the key is making sure it gets updated regularly.