Develop A Winning Budget Strategy On Any Income

It happens every year. As the snow melts, people everywhere turn their collective attention to basketball tournament brackets in hopes of winning big in the office pool, or pulling for WVU & FSU. But what if you could extend that rush of winning to last all year?

With a little planning, you can prioritize your budget to score big by creating your own budget bracket! To do that, it’s important to identify your “Fixed Expenses” and “Flexible Expenses.”

Fixed Expenses

Fixed expenses are those payments that you make each month that you have little-to-no control over. Examples of these payments include: Rent or mortgage,

health insurance, car insurance, student loans, etc. These can be adjusted when you sign up or switch services, but otherwise these payments do not change and must be paid.

Flexible Expenses

These are the things that you spend money on monthly that you can be changed. It’s important to understand Need vs. Want in this situation. There are things that you need to survive (groceries) and then there’s things that you want but can live without (fun money). Why aren’t the Needs in the Fixed Expenses category? Because you can adjust what kind of groceries you pick up, how often you eat out at restaurants, etc. But hobbies and a social life can also be as important.

Bracket Time

To create a bracket, you will first need to determine your monthly income: how much do you make each month? The next step is to subtract all your Fixed Expenses from that total. What remains is what you will be working with for the bracket.

Then sit down and write out as many monthly flexible expenses as you can think of, and aim to have at least 16. Flexible Expenses examples include: groceries, hobbies, going out, internet, new clothes, gas for your car, cellphone, savings, etc. Place them randomly into a selection bracket, and run through each section. Is “cellphone service” more important than “new clothes?” How about “groceries” over “happy hour?”

The winner doesn’t necessarily get the rest of your monthly income, but those who make it further in your bracket are your priorities - the things in your life that matter most. Start with the winner and determine your spend towards that each month, then work backwards from there. Usually the important things like food and internet will be at the top, and the things that are not as important filter to the bottom. It should be the same for budgeting.  

It gives you some perspective on where your money goes each month, and it can also give you a cap on how much you want to spend. If you give yourself a budget and follow it, you can limit yourself from overspending on things that may not be an actual priority for you. Having some money left over to go into your account is also a good idea for any unexpected payments or emergencies.

March Madness doesn’t need to end with March, and you can do this exercise year round. And you’re not alone if you’re looking to save big. Fairmont Federal Credit Union is courtside with you. Visit us at  www.fairmontfcu.com, call 304-363-5320 or stop in the nearest branch location today!

Sources:

https://www.daveramsey.com/blog/march-madness-budget-basketball

https://www.consumer.ftc.gov/articles/pdf-1020-make-budget-worksheet.pdf

https://www.mycreditunion.gov/tools-resources/Pages/Personal-Budgeting-Worksheet.aspx

Learning to Love Budgeting

Most people cringe when they hear the word “budgeting.” But when it boils down to it, budgeting is just a plan for your money. Budgeting means you’ll be spending with purpose before the month begins, and it won’t limit your spending freedom, but give you more. Budgeting is all about being intentional about where your money goes, and will give you a clear plan and picture about where your money is going.

1. Budget to zero: This means that before the month even begins, you’re making a plan and giving every dollar a name. It doesn’t mean you have zero dollars in your bank account, just that your income minus all your expenses will equal zero.
2. Budget together: If you’re married, you and your spouse should sit down and make sure you’re on the same page about your budget. Remember, since you’re a single unit, it’s not your money or my money, but our money.
3. Every month is different: Some months you’ll need to save for school supplies, and others you’ll have to save up for a vacation you’ve been wanting to take. Make sure you’re adjusting your budget accordingly to accommodate for these changes.
4. Start with important categories first: Giving and saving should be at the top of your list, along with food, shelter, utilities, basic clothing and transportation. Once those necessities are taken care of, you can fill the rest of the categories in your budget.
5. Pay off your debt: If you have debt, paying it off needs to be a top priority. You can use the debt snowball method and Baby Steps to get rid of debt as fast as you can, and stop letting it rob you of your income and budgeting plan.
6. Trim things out: If you’re on a tight budget, you can start to cut certain things out, such as your cable or dining out. You can also shop at discount clothing stores, and budget out meals before you go grocery shopping.
7. Cut up your credit cards: If you have a credit card, and are really committed to sticking to your budget, you need to ditch the credit cards. Having no credit card debt will mean no more minimum payments you need to make each month.
8. Make a schedule: Set specific dates to pay bills, and buy your groceries on a set day every week, or twice a month. When you know what to expect and when to expect it, you take a lot of stress and potential pitfalls out of the picture.

Let Fairmont FCU help! Use online banking and schedule your payments to pay your bills on specific dates and to set-up savings goals.  You can also open club accounts for specific items like insurance, auto expenses, education, etc and the best part is the club account is tied to your membership ID/account number making it easy to transfer funds or set-up automatic transfers to each designated club. For details or to apply online visit www.fairmontfcu.com, stop in any full service office or call 304.363.5320, option 1.  #WeAreFFCU #wvcreditunionscare #onceamemberalwaysamember

How to Declutter Your Life in 2018

What do you like to do in your down time? Perhaps you enjoy settling in on the sofa and reading a good book. Maybe you prefer to go on a walk or take a bike ride in your neighborhood. Whatever your favorite method of relaxation is, one answer we don’t hear a lot of is cleaning or organizing the house. Let’s face it—there’s a bunch of other things we’d rather be doing in our spare time than scrubbing our bathrooms or cleaning the kitchens. But you have to admit it, once you actually do, doesn’t it feel amazing?

There’s really no better time than now to de-clutter your life; after all, a new year means a new you.  Having a closet in your home full of mystery contents or a drawer with too many miscellaneous items is so last year. This is 2018; this is going to be your year where your life has minimal chaos and excessive order.

It sounds a lot scarier than it is; after all, we’re always afraid of some potential, hidden problem we’re going to find. But getting your finances in better shape, particularly with tax season right around the corner, is going to be the most therapeutic and beneficial way to get a fresh start in 2018.

Here are a few things we consider to be helpful to declutter your financial life in 2018:

Pay Bills Immediately

Never receive a bill, set it aside, and pay it later. Not only are you adding extra steps to your process, but you are just adding more paper to an already growing list of bills. Instead, open your mail as you are in your home office, and pay your bills immediately with a computer in front of you. Better yet—set up automatic online payments as you work on that computer.

Buy a Shredder

Bills like credit card statements and bank statements don’t need to be saved; often your bank will easily be able to access that information online for you. We recommend you go for a cross-cut shredder to help declutter your files.  

Ditch Paper Receipts

There’s an app we are loving right now that will easily declutter your life in 2018. Foreceipt Receipt Tracker is a great way to take pictures of your receipts and organize them digitally, set budgets, and track your spending. It’s an easy way to both store the information you need while significantly cutting down on paper.

Organizing your storage, re-evaluating your financials, or cleaning out your closet doesn’t have to mean that book that you’ve been reading gets abandoned. Decluttering your life and sorting out your bills means bringing a renewed balance between your professional life and your personal life. For more information on how to start the new year right by better financial organizational tips, contact your friends and experts at Fairmont Federal Credit Union.  Call 304-363-5320 or visit one of our locations today.