Budgets are helpful for a lot of different reasons. They provide you with the answers to what you should be spending in a given time and how much you’re saving. Learning how to create a budget is a logical first step—but sticking to that budget is a different story.

For DEXSTA, budgets are what we do. Although, they’re certainly not the only service that Delaware’s top credit union offers.  So, where do you start and what are some strategies for sticking to your budget?

First Things First: Create a Budget Within Reason

It may be surprising to some, but recent reports suggest that over 27% of Americans don’t think they need a budget. Skipping out on financial planning may work for some, but what about the 73% of Americans who think having a set budget is a good idea? Some of them may just not know where to start. 

If that sounds like you, it’s time to sit down and grab a cup of exceptionally strong coffee. Developing a sound budget for the upcoming spending year can take a lot of time and effort. With a little help from DEXSTA, you’ll be set up for success by writing down these five key strategies.

Step 1: What’s Your Actual After-Tax Income?

Do you know those pay stubs that come with every paycheck? It’s probably a good idea to keep track of those bearers of financial information. There’s more information than just the “net pay” directly deposited into your checking account. Those pay stubs tell you exactly how large of a “tax dent” your last paycheck received. They’ll also show you how much you’re taking home, which is essential for creating the foundation of your budget. 

Step 2: Choose Your Ideal Budgeting Plan

Separate a certain percentage of your income. For example, if you’re taking home $3000 a month after taxes, you should spread that out using a 50/30/20 system—50% ($1500) towards necessities, 30% ($900) towards your wants and wishes, and 20% ($600) towards savings and paying off debt. Different plans work for different folks. Choose what works best for your current situation. 

Step 3: Track Your Progress

There are a variety of online budgeting and saving tools that allow easy tracking of your income and expenses. Some free apps like Mint keep track of your budget for you by easily linking your bank and credit card accounts.

Step 4: Pay Off Your Debt Then Automate Your Savings

Once you’ve paid off all your current debt, consider signing up for automatic deposits in your DEXSTA shared savings account. They’ll give you a better idea of how much you’re saving every month without any extra work on your end.  

Step 5: Revisit Budget and Adjust Over Time

Things change over time. Jobs come and go, while financial emergencies can happen instantly. Maybe you’ve even decided it’s time for a family. If that’s the case, make sure you check in with your budget so that it knows you still care about it too. Move things around as needed—your wallet will thank you for it later. 

Creating a logical budget gives you back control in your own life while saving you money where it counts. Contact DEXSTA today, and we’ll help you not only create a budget but help you stick to it too.