Tips to help you financially plan in the new year
Average American has a median balance of $1,200 in savings
(InvestigateTV) — According to a 2023 Empower study, more than half of Americans say budgeting and tracking expenses is the most valuable way to manage their finances – and experts say the new year is a perfect time to start or update the process.
Nathan Grant, a senior finance industry analyst with MoneyTips, said a fresh start is helpful, even if you have a budget from last year.
Grant suggested several steps to begin a plan:
- Identify specific, personal, financial goals
- Track monthly expenses like rent and utilities
- Review flexible expenses
“That can be things like your grocery habits, maybe you want to think about where you shop, what brands you’re buying, you know, things like that you can kind of cut down,” Grant said. “But then you also want to revise things like your entertainment expenses. So that could be streaming services that you’re paying for or not really using anymore. Maybe not going out as often and of course limiting all your discretionary spending.”
Grant said consider “savings” an important line item in a new budget. Set aside money each month – even if it’s just $25 dollars, it will add up.
He suggested that a good place to cut could be the costs of convenience.
“You really can free up more money in your new budget if you’re cutting out things like food delivery or rideshare services,” Grant observed. “You know, they’re certainly helpful, but you’re always going to be paying for that convenience and those fees and tips and stuff like that can really add up.”
He urged people to track their progress each month.
Grant finished by saying there is no shame in speaking with a professional, whether it’s a personal banker, a credit union or a financial advisor to help stay on track.
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