The Crusader Newspaper Group

Pick a budget style and set it for 2022

Thanks to the global pandemic, our financial environment is ever changing. Some have been able to save, while others are experiencing financial hardships. People are resigning at record numbers to stay at home or enter other career fields or develop business ventures. 

No matter the circumstance, you are in need of a budget for 2022! It’s one of the first pieces of financial advice many of us hear as we approach adulthood. Budgeting isn’t a one-size-fits-all exercise, however. Fortunately, there are several options out there to help you get started or refine your budgeting journey! Here are just a few:

The Line-Item Budget This is the most basic budgeting method. Simply list all of your expenses, both necessary and discretionary. This includes housing costs, transportation, insurance, utilities, food, fuel, clothing, entertainment, and savings. This approach may work best for those who need to get spending issues under control.

The 50/30/20 Budget 50/30/20 splits your budget into three big categories: Necessities (50 percent), Wants (30 percent), and Savings and Debt (20 percent). This method is great for getting a high-level view of your spending habits. It’s also great for giving you a benchmark. Spent too much on necessities in 2021? Look for opportunities to cut back to get back to the 50 percent level in 2022.

The 60 Percent Budget method is like the 50/30/20 method but zeroes in on keeping your necessary spending at the 60 percent threshold or lower. Debt payments, retirement savings, emergency funds, and fun money make up the remaining 40 percent. This method can work best if you suspect your household’s spending habits could be a problem.

The “Pay Yourself First” Budget You got paid. Now pay yourself! This method is great for those who have a hard time building their savings/emergency funds. Start by setting aside the money you wish to save each month. Then, spend the rest of your money as needed. The catch is that you cannot dip into your savings to cover any spending that exceeds what you budgeted for.

You’ve likely tried one or two of these budgeting strategies. If they didn’t work for you, it may be that they weren’t the right fit for the way you work. That’s okay! Everyone is different. The important thing is that you find the right tools and strategies that help you reach the financial goal you want to achieve in 2022. 

If one didn’t work in the past, try another! Most of all, don’t feel frustrated, budgets are always a work in progress. Atled Financial is here to help, if you need us, just call! Happy Holidays!

Connect with Delta Jones-Walker and Atled Financial on Facebook, Twitter: @Atled_Financial and LinkedIn! To schedule a complimentary consultation or a presentation to your group or organization, call 219-513-3710 or email [email protected] and mention this column. Topic ideas for this column are welcome!

 *Securities and advisory services offered through Woodbury Financial Services, Inc., member FINRA/SIPC.  Insurance services offered through Atled Financial Group 3801 Ridge Road, Highland, IN 46322, which is not affiliated with Woodbury Financial.

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