How to Start a Budget for The New Year

December 23, 2020 | Louis Tully

step-by-step new year budget tips

Step-By-Step Guide for Setting Up Your Budget in 2021

Step 1: Figure Out Your Reasons for A Budget

If you decide to budget, you are far less likely to incur a load of money-related stress. It's always a great decision. But with that being said, it's a good idea to think about the reasons why you want to get started with budgeting.

Here are a few reasons that you might relate to:

  • Decreasing overspending
  • Figuring out ways to save more money
  • Staying on track for your financial goals
  • Avoiding living paycheck to paycheck
  • Ending money-related arguments

Step 2: Face Your Current Spending Habits

Once you have defined what motivates you, it's then time to take a look at how you currently spend money. This will allow you to create a realistic budget for the new year. Since, if it's not viable, then it's simply a wish.

Take a look at the past 30 days or few months (depending on how in-depth you want to go) to see how much you've been spending and what you've been spending it on. Some of this will be monthly expenses, while other things might be takeaways and other non-essential items.

Step 3: Make Use of Your Calendar

Not every single one of your expenses will be regular — although, we wish they were as this would be so much easier to budget for! To ensure you cover all of these erratic expenses, you should use your calendar.

Some of these irregular expenses might be some of the following:

  • Professional due
  • Property taxes
  • Birthdays
  • Christmas or other holidays that require gift-giving
  • Annual veterinary exams
  • Annual medical bills
  • Car inspections and taxes

Step 4: Calculate Your Income

When we say income we mean all of the following:

  • Alimony and child support
  • Business income
  • Income from any investments
  • Money from your side hustles
  • Wage income

Basically, "income", in this scenario, means everything you earn. As long as you know exactly what you (and your partner, if you have one) make, then you can set out a realistic budget for your household.

If your income is pretty irregular, then you could always make a budget based on the amount you earned the previous month. However, this is very time-consuming.

Step 5: Figure Out How Much You Want to Save

Now, you need to figure out how much you plan to save. This will largely depend on the savings goals you have in mind. Whether it's a certain item you want to acquire or a once-in-a-lifetime trip you want to take, you need to be able to save every month for it.

To do this, take a look at your income and how much of it is spent on non-negotiable expenses. Then, once you know this figure, determine how much you can (or want) to save out of this disposable income.

save money with budget

Step 6: Hold Yourself Accountable

After all of that, you need to consider how you're going to take accountability for your money. This will help you to truly stick to your budget and not fall off the money horse. The best way to do this is to use automation. Make all your recurring bills and debt payments automatic so you don't even need to think about it. You can also automate moving money between your current and savings account.

Step 7: Review Your Budget Every Month

The final stage of creating your budget for the new year is to make sure you review it every single month. Set a date in your calendar so you don't forget. Your budget will never be static. Revision is a necessity to being monetarily successful this coming year.

Okay, But What If Emergencies Strike?

While you should always have an emergency fund included in your budget, if you get stuck, we can help you out by giving you online payday loans.

Put simply, a payday loan is a short-term loan that allows you to receive up to $550 to cover unforeseen medical bills, car repairs, and other unexpected events.

payday loans

Payday Loans Can Get You Through A Financial Emergency

What are the Advantages of a Carolina Payday Loan?

Great question! They are many advantages for taking out a payday loan. They are:

  • It's easy to apply.
  • You don't need to have exceptional credit to gain approval.
  • You only need a driver's license (or ID card), a blank check, and your most recent pay stub.
  • You can receive up to $550 to cover your crisis.

How Can I Apply For An Online Payday Loan?

  1. Navigate to the CarolinaPaydayLoansInc.com homepage.
  2. Complete the form on the website. We only ask for basic information.
  3. Wait for one of our loan experts to get in touch. They will explain the rest of the process.
  4. Head to your local Carolina Payday Loans Inc office with your driver's license, a blank check from your checking account, and your most recent pay stub.
  5. Wait for an associate to conduct an evaluation.
  6. They'll answer any questions that you have next.
  7. Then, complete the application and you'll receive your cash on the same day!  

Follow the step-by-step tips to set up a budget that will see you through the whole year and get you off to a great start. If an emergency intervenes and you need financial help now try a payday loan to get you the cash you need right away. Apply today for a payday loan.