We often start diets in the new year to try and achieve better health, but many of us could also use a “spending diet” after holiday shopping. If you are looking for ways to update your budget and save money in the new year these tips can help.

Setting a Budget

A spending diet is really just a funny way to talk about budgeting. Budgeting is a great way to help you see where you are spending money, decide what is a need vs want, and how you can achieve your financial goals.

Budgeting Step 1: Track Your Spending

There are a lot of different ways to create a budget and track spending, but we are fans of keeping it simple and using a format that makes sense to you on a monthly or weekly basis. If you are a fan of technology, take advantage of secure spend tracking features within mobile and online banking platforms. If old school is your jam, track with an Excel sheet or another document. There is no right or wrong way to track as long as it is secure…and you actually do it. Once you see where your money is going you can set up a budget.

Budgeting Step 2: Keep it Realistic

Now that you know where your money goes you can create a budget. Conventional wisdom is to pay your bills first and then see what is left over. Another way to look at it is to define wants and needs. You need to pay your bills, which is why they should be paid first. Wants can be broken down into what your priorities are. If you are looking to reduce stress and have a larger emergency fund, see if you can cut down on things like coffee runs or eating out. Those funds should then be put in a savings account that you designate as your emergency fund. The same philosophy can go towards saving for vacations, medical expenses, educations costs, paying off debt, and more. Just like caloric diets be sure to factor in some money for fun whether it’s an extra treat while grocery shopping, a new book, going to a movie, or eating out once a week. This way you meet your goals for the future without feeling deprived in the present.

Budgeting Tools

There are a multitude of great tools available to help in creating a budget, understanding your wants and needs, calculating interest rates, and tracking your spending. Finding what works best for you is key along with making it a habit you can keep. If you are enrolled in our online/mobile banking check out the tools available to you there! If you prefer to use Excel or other hard copy documents, we have some nifty templates for tracking your expenses and budgeting.

Simple Monthly Budget-FILLABLE.pdf

Download PDF • 102KB

Monthly Budget for Saving Goals-FILLABLE.pdf

Download PDF • 226KB

Monthly Budget to Pay Down Debt-FILLABLE.pdf

Download PDF • 182KB

Excel - Budget Template.xlsx

Download XLSX • 73KB

Excel - Monthly Family Budget.xlsx

Download XLSX • 66KB

Another set of helpful tools are financial calculators which are helpful tools for budgeting because they allow you to easily estimate savings over time factoring in interest rates, look at buying vs leasing, see monthly payments for simple loans, and more.

Bringing It All Together: Achieving Financial Wellness Through Smart Budgeting

Starting the new year with a spending diet can set you on the path to reaching your financial goals and building better money habits. Remember, the key is to find a budgeting method and tools that work for you, whether it’s using online banking features, financial calculators, or a simple Excel template. By tracking your spending, keeping your budget realistic, and making use of helpful resources, you’ll be well-equipped to save more, stress less, and enjoy your money with confidence in the year ahead.