Learn how to make a budget to manage your expenses while saving for your goals to help set up a solid future.
Are you among the many who plan on including budget planning in your list of 2019 New Year’s resolutions? If so, congratulations. If not, there’s still time.
Budgeting your money is about more than just watching what you spend; it’s also about paying yourself first. This means getting the most out of your money by balancing your current expenses and future goals, while still enjoying your lifestyle. Retirement, for example, may seem to be a long way off, but budgeting today can help you stay on track toward your ideal future.
Here are a few budgeting tips and ideas as you start the new year.
Budgeting your money can help you plan ahead and get on firm financial footing. Think about all the things you spend your money on in a month. You probably have a general idea of your expenses, but have you ever been left asking, “Where did all my money go?” The 50/20/30 rule is one effective way to gain more financial control over your expenses.
The 50/20/30 rule can help you determine how much to spend and how much to save each month. Suppose your take-home pay (after taxes and 401(k) contributions) is $50,000 annually. That’s $4,166 per month.
There are several steps you’ll need to take in order to come up with a budget that works for you and your lifestyle. You’ll need to track your income versus spending, see where your money is going now, and then determine what changes you might make based on the 50/20/30 rule.
There are a few different ways to track your spending, such as recording your purchases in a notebook or using one of these third party apps on your smartphone.
Mint // A popular budgeting app, Mint combines an all-in-one approach to track your finances, help you make budgets, check your credit, and send alerts right to your phone.
Quicken // Personal finance software with a variety of features that allow you to personalize your approach, whether it’s a general household budget or managing more detailed spending habits.
EveryDollar // This app allows you to create budgets, manage money, track your spending, and split transactions with overviews of your planning, spending, and remaining funds.
Wally // An app that helps you track personal expenses by taking a picture of your receipts instead of requiring you to manually log them.
PocketGuard // This simple app cuts to the chase about what users want to know: how much they have to spend. It provides a snapshot of how much money you can use at any particular moment, given your budget.
It’s easy to talk about budgeting your money, but it takes discipline to follow through on your plans and find the funds to support your spending and saving goals. Here are some initial things you can do to stay on track toward retirement and other goals:
for thinkMoney ®
Financial Communications Society 2016
for Ticker Tape
Content Marketing Awards 2016
Mint, Quicken, and EveryDollar are separate from and not affiliated with TD Ameritrade, which is not responsible for their services or policies.
Market volatility, volume, and system availability may delay account access and trade executions.
Past performance of a security or strategy does not guarantee future results or success.
Options are not suitable for all investors as the special risks inherent to options trading may expose investors to potentially rapid and substantial losses. Options trading subject to TD Ameritrade review and approval. Please read Characteristics and Risks of Standardized Options before investing in options.
Supporting documentation for any claims, comparisons, statistics, or other technical data will be supplied upon request.
The information is not intended to be investment advice or construed as a recommendation or endorsement of any particular investment or investment strategy, and is for illustrative purposes only. Be sure to understand all risks involved with each strategy, including commission costs, before attempting to place any trade. Clients must consider all relevant risk factors, including their own personal financial situations, before trading.
This is not an offer or solicitation in any jurisdiction where we are not authorized to do business or where such offer or solicitation would be contrary to the local laws and regulations of that jurisdiction, including, but not limited to persons residing in Australia, Canada, Hong Kong, Japan, Saudi Arabia, Singapore, UK, and the countries of the European Union.
TD Ameritrade, Inc., member FINRA/SIPC. TD Ameritrade is a trademark jointly owned by TD Ameritrade IP Company, Inc. and The Toronto-Dominion Bank. © 2019 TD Ameritrade.