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Budgeting Basics

November 25, 2015 We should all be budgeting our money, no matter what our financial goals. Time to get that brand new car? Down payment on your first house? What about just creating a savings cushion or paying down some credit card debt? As you start budgeting, we’ve laid out a few basic rules to get you on your way. You never know how much savings you can find by starting now.

1. Find out where you stand. 

It is best to discover where exactly you are financially. Begin by determining your total monthly income, including salary, investments, part-time work, etc. Then subtract all of the bills that you know reoccur every month (e.g., rent, car payments, insurance, utilities, phone bills). With the remaining amount, you can actuate a realistic amount to save each month. Don’t forget to consider other purchases you’ll need to account for, like groceries and gas.

2. Go direct. 

A great way to rack up savings is direct deposit. Remember the old saying, ‘you don’t spend what you don’t see?’ Exactly. Start with a set amount (i.e., five to ten percent of each check) to automatically deposit into a savings account and it will add up before you know it. Extra points if you invest in a mutual fund, a professionally managed basket of diversified holdings. These accrue more than a savings account over time, and prevent you from withdrawing funds early, as there are typically penalties that incur.

3. Break bad habits, not the bank. 

Take a look back at your monthly bank statements, receipts or all the times you dined out right after grocery shopping. Where can you cut back? Try to really make your spending trends “lean” and eliminate any extra spending. It can help by allowing one “fun-purchase” a month like a bigger gym bag, a new watch, or those must-have boots. This will help keep impulses in check and allow you to have fun along the way!

4. Cut the debt. 

It’s easy to let your credit card debt pile up. Do your homework and identify which of your credit cards has the highest interest rate. Pay off as much as possible each month on it and meanwhile, make minimum payments on any other cards. Once the first card is paid off, choose another one as priority, continuing to make minimum payments on the others, and so on.

5. Set goals! Both short AND long-term. 

Goals are huge. They can serve as inspiration when we get off track, and as a benchmark to measure progress. Try to set both a short-term and long-term goal immediately. This could be saving enough cash for a winter vacation and putting a down payment on a new home. The short-term will give you confidence with quick success and the house payment will keep you in it for the long haul. There you have it! Establish these basic budgeting tips and don’t forget to check out   for more financial tips. You might also be interested in Financial success isn’t how much money you have — it’s feeling good about what you’re doing with the money you have. Here are some tips on how to prioritize your debts and bills, negotiate with creditors and get your late payments back on solid ground. Even in these challenging times, there's  whole lot of good happening! At Summit, we've always believed financial success happens together and that's been truer than ever this past month. Here's what "together" has meant for our community. Navigating finances after college is hard, but you can take it one lesson at a time. Get tips for managing money and paying off student debt after graduation. Navigating finances after college is hard, but you can take it one lesson at a time. Get tips for managing money and paying off student debt after graduation. If you’re not sure if something is a scam, it’s ALWAYS better to act like it could be! Fraudsters are always coming up with creative new ways to steal from you and quick to take advantage of a crisis. Here are some of the most popular recent scams to watch for. With a little planning, you may be able to actually save a little money during the holidays. Check out these tips to keep costs down without missing out on the holiday fun. Some scams go right for your money; others try to get you to part with personal information – like account numbers, Social Security numbers, passwords, and personal identification numbers (PINs). Find out what you should look for and how to protect yourself. The holidays can be stressful & that’s why it’s important to prioritize your self-care. Use these tips to reduce stress without draining your bank account. Your home is your castle, your refuge and—let’s face it—a place where it can be very easy to sink a big chunk of money. Which is why you’re always on the lookout for “sweet spots”:  those home improvements that add comfort, safety or a little zing of style while you’re living in your house and will boost the asking price when it’s time to sell. And if you can find a way to save money on those improvements or cut home expenses at the same time, well that sweet spot just got a little sweeter! Featured Products Certificates Checking Accounts Home Equity Loans Home Loans Business Banking Certificates Checking Accounts Home Equity Loans Home Loans Business Banking Financial Education Upcoming Events Programs Tools & Calculators On-demand Webinars Podcasts Upcoming Events Programs Tools & Calculators On-demand Webinars Podcasts About Equity in Money™ About Summit Careers News Community Giving Equity in Money™ About Summit Careers News Community Giving Help & Support Contact Us Member Support Center Schedule an Appointment Find a Branch Contact Us Member Support Center Schedule an Appointment Find a Branch Please read the following before proceeding to: The website you are about to visit is solely the responsibility of the merchant or other party providing the site. The content of this third-party site, including materials and information, is solely the responsibility of the provider of the site. The Credit Union is not responsible for any such third-party content. Any transactions that you enter into with a vendor, merchant or other party that you access through this third-party site are solely between you and that vendor, merchant or other party. The Credit Union does not endorse the content contained in this third-party site, nor the organization publishing the site, and hereby disclaims any responsibility for such content. The Credit Union Privacy Policy does not apply to this third-party site, and for further information you should consult the privacy disclosures of the third-party site. NCUA Insurance Estimator Privacy, Security & Accessibility Rates, Fees, Terms & Disclosures Routing Number *  The Wisconsin's #1 Mortgage Lender designation is based on the number of loans in 2022, gathered from the Home Mortgage Disclosure Act data compiled annually by the Consumer Financial Protection Bureau. The results of the data were obtained through the LEI: 254900NTAC4H10MGSU23 **  SBA Lender of the Year Award for Credit Unions as awarded by the Small Business Administration of Wisconsin in 2023. Copyright 2024 © Summit Credit Union. All rights reserved. If you are using a screen reader and are having problems using this website, please call 608-243-5000 for assistance. Insured by NCUA