Budget and Spending

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How can you maintain healthy finances for yourself, your family and/or your household?

The suggestions below will get you started, and you can also contact your local Goodwill® for help with achieving your financial goals.

Creating a budget helps you take charge of your finances and save money each month. It identifies all income and expense sources, allowing you to track your spending.

Benefits of Budgeting

  • Keeps your finances in order
  • Allows you to see where your hard-earned money is going
  • Helps you check for spending problems
  • Provides a glimpse of your financial future

Building Your Budget

  • Calculate your net income each month.
  • Determine current expenses: Ask others in your household to save receipts for a week to show their purchases.
    • If there is a family goal (e.g., a vacation, a new car, college) let the budget symbolize the steps needed to achieve it.
  • Determine which things are your wants (things that can wait) and which are your needs (things that can’t wait). Eliminate as many wants as possible and prioritize your needs.
  • Plan for future expenses.
  • Place your budget on your refrigerator door for everyone to see and keep in mind.

Maintaining Your Budget

  • Control expenses.
  • Pay off debt when you can.
  • Spend wisely.
  • Exercise will power and don’t indulge in unnecessary purchases.
  • Develop a record-keeping system.
  • Constantly evaluate your performance and stick to your goals.

Make the Most of Your Savings

After you’ve made the changes to your budget, it’s important to put money away. A savings plan guarantees some reassurance about future expenses and goals, and prepares you for unexpected financial hardships. The recommended savings cushion for most individuals is $500, but try to save what you can each paycheck.

When you get ready to create your savings plan, contact your financial institution to determine what types of products are best for you. Common products include savings accounts, CDs (certificates of deposit), 401k plans and IRAs (Individual Retirement Accounts). Be sure to comparison shop in order to find the right fit for you.

For more help with budgeting and financial education, visit the Goodwill in your community.