Getting started
What kind of a budget do you think would be most helpful for you? Weekly, monthly, quarterly, yearly? This might depend on your goals. Identify short-, medium-, and long-term goals. Start with an aspirational brainstorm and tailor it down to tangible action items. It could be helpful to follow the Consumer Financial Protection Bureau’s SMART method, which ensures goals are specific, measurable, achievable, relevant, and time-bound.
Gathering information
You’ll want to review your after-tax income and your variable and fixed expenses. Fixed expenses are often easier to calculate on the spot—these include your rent or mortgage, phone bill, etc., while variable expenses include things like groceries, dining out, shopping, etc. Try tracking your spending for a month to gauge these fluctuating expenses so you can get a general idea of what your spending habits look like. This can also be a great time to find an extra subscription to cancel or identify any areas where you’re spending more than you thought.
Calculations
What’s coming in? What’s going out? Simple math, but not always the simplest of solutions—especially if you find yourself with a deficit. If this is the case, you’ll want to think about what you can do to either increase your income or decrease your spending. We know, easier said than done, but a necessary step to avoid going into debt.
If you find you have money left over, you’ll want to look into savings strategies. Consider automating funds into a savings account or opening a CD with extra savings to earn more interest.
Find your balance
Whatever your equation adds up to, there are strategies and solutions to help you manage your finances. Online banking tools can be especially helpful. Wintrust’s mobile banking app,1 for example, offers spending insights, budgeting tools, and savings trackers. You can also aggregate all of your accounts, credit cards, investments—any type of account at any institution. This way, you can monitor everything in one place to get your full financial picture.
Another helpful strategy is to speak with an expert—your local banker. We’re here to help you set up budgeting strategies that work for you. Find a branch near you.
