January seems to be the time when we all have a big desire for change and improvement. For example, we may set a goal to be more financially sound in 2020.
Not everyone likes to talk about money, but if we give money a job to do and make it work for us instead of the other way around—we can reap the rewards now AND later.
Here are 5 tips for Improved Family Budgeting through Amanda Christensen, Assistant Professor at Utah State Extension.
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Create a zero-based budget –act like the CEO of your own income. The idea is to have zero dollars left doing nothing for us. Every dollar is accounted for. Every dollar is assigned a job to do such as: to go towards a summer vacation, braces, clothing etc.
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Categorize spending expenses. Each expense needs to fit somewhere. If something doesn’t become a category, in your budget, such as a vacation, you will never prioritize it.
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Make personal allowances. We all work hard on our money and we want to be able to spend it on what we’d like (within a limit)
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Power pay debt. For example, when you’re done making a payment on your #1 debt you can then begin putting down money towards your #2 debt and so forth.
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Educate yourself. Plan ahead to succeed. Go to your local extension office such as www.finance.usu.edu, or you may check out these further websites within the USU extension website: www.utahmoneymoms.com, www.powerpay.org
Furthermore, there is a great idea from Amanda Christensen at the USU Extension called the “’52 Week Money Challenge.”
She suggests, “You can start now, at any week. The challenge doesn’t need to begin in January.”
By the end of 52 weeks, you’ll have saved over $1,300. Now, that’s something to be excited about!
Here’s how it works: Beginning with week 1—you save $1.00. Week 2 you save $2.00
Week 3 you save $3.00
Week 4 you save $4.00
When you reach week 52, you’ll have saved over $1300.00
A more detailed plan can be to:
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Create a separate savings account at your financial institution just for your 52-week challenge.
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Involve your entire family-explain to your children about the challenge and how the money will be spent
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Make a chart detailing your progress with 52 spaces to track the money growth and keep you motivated. Visual reminders are so helpful
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Variation=pick your amount each week
Lastly, here are some money tips for newlyweds. My own daughter recently got married and these tips would be helpful to her but, they can also apply to all of us.
Newlywed Financial Tips
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Talk about your money history, career, aspirations and communicated them with each other. What do you expect about your financial future?
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Talk about your budget together. Maye someone in your marriage is going to be the “money manager” and assess what income comes in and what expenses go out.
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Talk about credit. Things such as student loans, education, buying a car, your first home and more. Both of you need to be comfortable with how you will choose to spend your credit in the future.
For more tips and guidance on money management and budgeting, please go to www.finance.usu.edu
