Well, back to reality. The holidays are officially over…did you survive? Recovering from the holidays isn’t always easy, but it sure does happen pretty fast. Whether it leaves us rejoicing or nostalgic, it’s inevitable. Before we know it, we’re back into those daily routines and normal rhythms of life.
On the flip side, it’s sort of nice, isn’t it? Getting back into a rhythm can be helpful; it creates balance and consistency in our lives. Those two ingredients can make a huge impact, especially when applied to budgeting.
So, with the new year in full swing, are you feeling balanced? How about your budget? Has it been easy to be consistent? My guess is that this time of year throws a wrench into the operation. Things don’t always go according to plan, and it sometimes is difficult to follow the budget despite our best intentions. But honestly, is there a better time than right now to hit that reset button if we’ve gotten off track financially? I think not.
If we find ourselves in that not-so-pleasant spot, take a moment to reboot and shift that perspective.
- Remember why you started. Often times, we don’t feel the need to change something until it becomes uncomfortably painful in its current state. We get sick and tired of being sick and tired, so we finally make a change. The same applies to our financial situation. What circumstances caused you to set those specific financial goals in the first place? Was the feeling of being broke, or living paycheck to paycheck too overbearing? If we’ve lost sight of why we started, let the pain serve as the driving force to motivate us once again. Remember your financial goals and reignite that passion to do things differently!
- If you’re lacking balance, reconfigure it. There are two parts to balancing a budget. First things first, the main components of our budget should be in alignment: income, expenses, saving, giving, and debt. According to Fidelity Investments, it’s recommended that 50% of each paycheck goes to essential expenses, like housing, food, and transportation. The easiest way to realign this is to take a look at the expense category and see where we spend our money. For a detailed layout of needs versus wants, check out my post here. Second, the budget actually needs to balance, meaning it needs to equal zero after each line item has been entered. Income minus expenses, savings, giving, and debts must equal zero. Check out the detailed budget breakdown below to use as a reference.
So consider this your fresh start, your clean slate, your blank canvas. Rebound from the money mishaps of 2018 and move forward with confidence. Paint the picture of the new year with the new-and-improved plan. Accept and expect the setbacks, but don’t lose sight of where you are headed. And remember, financial struggles can be your past, but they don’t have to be your future.