Financial Education
Building a monthly budget
Everyone knows budgets help you save. But creating a budget you can actually stick to? That’s the real challenge.
Whether you’re saving up for an emergency fund or a dream vacation, a budget helps you see where your money is going each month. And with more control over your finances, you can save and spend with confidence.
Ready to get familiar with your finances? The experts at Origin are here to help you track your spending and create a budget that suits your needs.
A budget built around you
From reviewing transactions to trimming expenses, these helpful budgeting tips make it simple to stay in-the-know.
- Calculate your monthly income. The first step is to calculate how much money you have coming in each month. Also known as your net income or take-home pay, this is your total wages after taxes and employee benefits. For salaried workers on a regular pay schedule, your total will be the amount deposited into your account each pay period. If you’re a gig worker or contractor with varying hours and income, keep track of your invoices to avoid over- or underestimating.
- Keep track of your spending. After you’ve calculated your monthly take-home pay, it’s time to see where your money is going. Start by looking back through your payment history and categorizing your expenses. Credit card or bank statements are particularly helpful here because they break out spending into categories, but old-fashioned pen and paper also work. Start by calculating your fixed expenses like utilities, rent or mortgage, and car payments. These expenses are often recurring bills, and they don’t change much, if at all, from month to month. Next, calculate expenses that do vary, like groceries, dining out, or gas. These may be areas where you can cut back.
- Do the math. Now, subtract your expenses from your monthly intake. This number should be more than zero. If it’s not, you’re spending more money than you make, and you’ll need to cut back.
- Cut back where needed. Whether it’s dining out or online shopping, most of us have areas where we overspend. This step requires you to take a step back and look at your spending with a critical eye, separating your wants from your needs. If all little luxuries feel like needs, consider whether that “need” might just be a “hard to part with.” Do you eat out multiple times a week or buy a coffee every day at work? Whittle it down to just once a week, and watch your savings snowball.
- Set savings goals. Saving is easier and more rewarding when you have a clear goal in mind. Whether you want to make a down payment or take a dream vacation, you need a savings or money market account that matches your needs. Origin Bank’s flexible accounts help you grow your funds with confidence. Save and invest for your family’s future, an upcoming purchase, or retirement with one of our savings and investment accounts. With a variety of interest rates and withdrawal allowances, you can choose the one that best suits your needs.
A better way to budget
A budget you can stick to is your ticket to financial freedom.
Plan smarter with expert advice and financial tools built into your Origin Bank account. Schedule bill payments, make space for savings, and view spending patterns to stay on target. For even more tips to help you save, visit our blog.