Budgeting resolutions to last through 2023

January is a month full of resolutions and optimistic goal-setting. A new year makes people motivated to give themselves a fresh start, and they are determined to achieve endless possibilities. Unfortunately, many of these resolutions fall by the wayside after a month or so. If you’re trying to create some financial or budgeting resolutions for yourself, it’s important to keep it realistic!

There’s no shortage of money goals we can set for ourselves, but they won’t serve much purpose if they’re not achievable. Here are some realistic goals we think everyone can reach in 2023!

Start, or revamp, an emergency fund

You’ve likely been told before to have backup savings or a “rainy day fund.” You also probably know the value of setting this up, but may have pushed it aside as a project for down the road. If you’re trying to improve your budgeting, the time to put those plans into action is now. You never know when you will need emergency savings ready for use, but everyone will likely need to use backup savings at some point in their lives. Whether your car breaks down, your dog gets sick, or you need to visit the dentist for a broken tooth, having these emergency savings will help cushion the financial burden. You can start small, adding a little bit of money every month to your account. The key is to be consistent. If you commit to putting in 20 dollars per month, hold yourself to that promise. Over time, your little savings account will grow into something you can rely on in an emergency.

Start saving for a future goal

Most of us have money goals, and they can be big or small. Maybe you’re trying to save an extra 50 dollars each month to set aside for a future purchase, like a new phone or vehicle. Perhaps you’re thinking along the lines of saving up for a home and contributing to a down payment fund. Whatever the case, a great budgeting goal for 2023 is to start actively saving up for the future expense you’re looking at. Depending on the urgency of the purchase, and the cost, you can start saving in small or larger amounts. For example, a home will take a while to save for, so your savings period will be longer than if you are saving up for a new phone. You can take your time with this goal and only contribute as much as you can without putting yourself into financial trouble. Saving for the future is great, but don’t forget about the present!

Test out a budgeting app

Budgeting apps can be a great way to help you organize your money in 2023. As our world becomes increasingly digital, so does the way we handle money. Using an app can help you keep track of your finances in a more easy and accessible way. There are several budgeting apps, and they all have their own unique features, but the overarching theme is the same: to help you manage your money and feel in control of your finances. If you need some suggestions, we wrote a blog on the best budgeting apps not too long ago. Take some time to research different options to find one that’s best for you.

Use less credit

Everyone loves using credit cards. You can buy whatever you want with no immediate consequences, so you can push off the time when the financial burden will come down. However, sometimes we overuse credit and end up in debt trying to pay back what we used. If you’re an over spender, this might be a good time to commit to using less credit. When you buy items with debit cards or cash, you’re forced to spend your own money right away, and watch it leave your account immediately. This can feel more real than charging everything to a credit card, where actually paying for the expense is delayed. When you go shopping, you’re forced to consider what you really need, and what you’re willing to spend your money on. Odds are, this will result in you buying fewer items and saving more money.

Don’t ask too much of yourself 

Finally, an important part of budgeting is to take things slow and don’t expect too much from yourself right away. It’s easy to set lofty goals, then feel bitter when you fall short, and this makes it more likely you’ll give up. You can divide your goals into manageable chunks, so you’re achieving one little bit at a time. Take a moment to congratulate yourself on your progress when you reach an important milestone. This could be reaching the halfway mark when saving for a down payment, or increasing your credit score enough to qualify for better products. Most importantly, give yourself a break and don’t be hard on yourself if you experience a setback. It’s normal to make mistakes so you can learn from them!

Budgeting can be challenging, especially if you don’t have a clear idea of how to do it or where to start. Everyone’s budgets are different, which means everyone’s goals will be different. However, you can take things slow and create a personalized budgeting path for yourself. If your goals involve homeownership, that’s where we come in! Mortgage brokers are an invaluable resource for buyers, and we can help you with your finances and budget to find the best product. If you plan on entering the market, contacting a broker should be on your list.

If you have any questions about your mortgage, give us a call at Centum Home Lenders! You can reach us at 506-854-6847, or get in touch with us here.