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VCNB Blog

Turn Money Resolutions Into Manageable Goals

With a new year upon us, many Americans are thinking about New Year’s Resolutions. The problem with a resolution is that it’s just a goal without a plan. If you wish to get your finances in order, we can help you make a plan that supports your goal.

Face The Facts

Are you a list maker? We hope so because the first thing you’re going to do is make four lists.

  1. What are your financial goals this year? Here are some examples:
    1. Pay off debt
    2. Save a down payment for a home
    3. Start an emergency fund
    4. Take a dream vacation
    5. Stop living paycheck to paycheck
    6. Save for your child’s education
    7. Increase retirement savings
    8. Curb impulse buying

You may have more than one goal but you can’t focus on everything at once. What’s most important? Which goals will work together?

  1. How do you spend your money?
    1. Include all regular bills including mortgage, rent, car insurance, health insurance, utilities, cell phone, property taxes, subscriptions, gasoline, money to savings, etc.
    2. Include all inconsistent categories like fees for your children’s extracurricular activities, back to school shopping, Christmas and birthday gifts, vacations, weekend entertainment, hobbies, etc.
    3. List those “walking around” expenses like lunches out, gas station snacks and the host of other small things you buy while out and about.

Add that all up and take a good look at how much you are really spending. If you wonder where your paycheck goes, here’s your answer. Did you know your lunch spending adds up to $200 a month and streaming services are over $100? How much are you spending every Saturday because shopping is a fun pastime? You may be fine with most of your choices but there could be opportunities to trim. Regardless, awareness is an important and healthy part of money management.

  1. How much money do you make?
    1. Itemize your income and include things like child support and side hustle cash.
    2. Add up your income and compare that amount to what you’re spending.

Now that you know how your earning and spending stack up and have faced the reality of how you’re really using your money, it’s time to do some soul searching. Place the list of financial goals next to the list of income and expenses and ask yourself some questions.

  1. Does my spending support my goals?
  2. How can I make my spending better support my goals?
  3. Where can I trim?
  4. Do I need to make more money?
  5. Do I earn enough but blow my savings potential on things that work against my goals?
  6. Who in my family do I need to get on board?

Think It Through

Your answers to these questions will determine what happens next. Most people think it’s enough to just make a budget but there’s so much more to being financially healthy. That’s because a budget is simply a plan for how to use your money. It’s a living, breathing document that can be changed as often as needed but it’s also easy to ignore. That’s why it’s important for you to stop and think about your WHY.

WHY do you want to pay off debt? WHY do you want to own a home? WHY is financial security important to your family? Visualize the WHY before moving to your last list.

  1. What sacrifices can you and your family make to help you reach your goals?
    1. Ask everyone if there is something they can do without. Cuts may not be as painful as you think.
    2. Can you get a raise or a side hustle?
    3. Are there ways to cut bills?

All of this inspiration and information will help you budget.  Click here for a story about budget building. 

 

Next Steps

Now that you have your priorities and budget in order, it’s time to look at your bank accounts. Are your current accounts serving your needs? Are you earning uChoose® Rewards points on your everyday purchases? Do you have separate savings accounts for your emergency fund and for your goals?  If your goal is to build or buy a home, it’s never too early to chat with a lender who can help you prepare for the process. In fact, even in this age of online banking, it’s important to have a relationship with a banker so you have someone to call when need arises.

Also, are you using VCNB tools to help you stay informed about your money?

  1. VCNB Mobile allows you to check balances, pay bills, transfer funds and more right from your phone!
  2. Automatic transfers make saving easy. No more forgetting or choosing to skip it “just this one time!”
  3. Spending insights in the app provide a snapshot of your spending habits.
  4. Account Alerts can be set for each of your VCNB accounts and for different reasons. Receive a text or an email each time your card is used. Set a minimum balance notification so you don’t overspend.

Finally, come up with a plan for when you want to veer from your budget and your goals. Mistakes happen but you don’t have to abandon your plan. Remember, a mistake isn’t fatal. It’s an opportunity to start again!

 

Resource Guide

Budgeting 101 https://www.vcnbfamily.bank/Why-VCNB/VCNB-Blog/budgeting-101

Sticking To A Budget  https://www.vcnbfamily.bank/Why-VCNB/VCNB-Blog/sticking-to-a-budget

Why Your Budget Doesn’t Work  https://www.vcnbfamily.bank/Why-VCNB/VCNB-Blog/why-your-budget-doesnt-work

Get Your Finances On Track With A Spending Fast  https://www.vcnbfamily.bank/Why-VCNB/VCNB-Blog/get-your-finances-back-on-track-with-a-spending-fast

31 Ways To Save Money https://www.vcnbfamily.bank/Why-VCNB/VCNB-Blog/31-ways-to-save-money

Ways to Save On Food  https://www.vcnbfamily.bank/Why-VCNB/VCNB-Blog/nine-changes-to-save-on-food

Emergency Fund 101 https://www.vcnbfamily.bank/Why-VCNB/VCNB-Blog/emergency-fund-101

 

 

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