By Evan Vitale
Congratulations! You’ve made it one month into 2016 and, hopefully, you’re still on track with your personal budget resolutions.
Of all the resolutions you may have made on January 1 – losing weight, finding a new job, breaking a bad habit, etc. – your budget resolution may be the most important one.
A recent study conducted by the University of Scranton shows that more than half of those who set budget resolution goals give up within the first three months. However, those who made it to the six-month mark, stayed on track for the entire year.
If you haven’t created a persona budget for 2016, it’s never too late to get started. If you have a budget, now is a good time to review it.
Here some other things you should consider when creating or reviewing your personal budget:
- Try to put a little bit aside as an emergency fund. This way, you’ll always be ready for the unexpected. Typically, an emergency fund covers approximately three-to-six months of daily expenses. Hopefully, you’ll never need to tap into those funds, but it will give you peace of mind knowing emergency funds are available if such an emergency arrives.
- Be it computer software or paper, make sure you set up a system for your budget that you are comfortable with using. Daily remembers on due dates and other action items will help you pay bills on time and avoid penalties and late fees.
- Review your retirement plan, investments and benefits, whether you are employed or self-employed. It might be a good time to have an “update” meeting with your financial planner and/or a meeting with your benefits supervisor at your office.
- Try to save. Adjust spending, cut back on a few extras here or find other ways to bring in more income.
Keep going on your budget resolution!