Tag Archives: sticking to a budget

Creating a Budget You Can Stick To

FTSB savings tips
Rainy-day funds, savings for college, or just making your rent payment can all be made easier with a budget. FTSB supports its customer’s efforts to budget and save by offering expert guidance.

Putting together a household budget requires time and effort. Here are some suggestions as you get on the budget track:

  • Be a Spending Sleuth. Track every penny you spend for a month. Keep receipts and write everything down. This will be an eye-opening experience and will help you see where you can cut back.
  • Count Your Money. Determine the total amount of money coming in. Include only your take home pay (your salary minus taxes and deductions). Your income may also include tips, child support, investment income, etc.
  • Itemize, Categorize, Organize. Review the records and receipts you’ve been collecting over the last month.
  • He Shoots, He Scores. Set a realistic financial goal and develop your budget to achieve that goal. Subtract your monthly expenses from your monthly income. Find ways to cut spending and set limits on things like entertainment expenses.
  • Save, Save, Save. Make one of your financial goals to save a certain dollar amount each month. Start an emergency fund if you don’t already have one. You never know when you may need it.
  • Stick to it. Keep track of your spending every month. Update your budget as expenses or incomes change. Once you achieve your financial goal, set another.

Financial Traps to Avoid as a New College Graduate

kidsavings

As college graduates start their careers, financial responsibility should be a top priority. There are many traps new grads can fall into, and we hope avoiding the below points will help build a healthy financial lifestyle and good habits as they advance through the next stages of life.

  • Not having a budget. Simply put, don’t spend more than you make. Calculate the amount of money you’re taking home after taxes. Then figure out how much money you can afford to spend each month while contributing to your savings. Be sure to factor in recurring expenses such as student loans, monthly rent, utilities, groceries, transportation expenses and car loans.
  • Forgoing an emergency fund. Make it a priority to set aside the equivalent of three to six months’ worth of living expenses. Start putting some money away immediately, no matter how small the amount. An FTSB savings account is a smart place to stash your cash for a rainy day.
  • Paying bills late – or not at all. Each missed payment can hurt your credit history for up to seven years, and can affect your ability to get loans, the interest rates you pay on loans and your ability to get a job or rent an apartment. Consider setting up automatic payments for regular expenses like student loans, car payments and phone bills.
  • Racking up debt. Understand the responsibilities and benefits of credit.  Shop around for a card that best suits your needs, and spend only what you can afford to pay back. It’s a great tool if you use it responsibly.
  • Not thinking about the future. It may seem odd since you’re just beginning your career, but now is the best time to start planning for your retirement. Contribute to your employer’s 401(k) or similar account, especially if there is a company match. Invest enough to qualify for your company’s full match – it’s free money.
  • Ignoring help from your bank. FTSB offers online, mobile and text banking tools to manage your account night and day. Use these tools to check balances, pay bills, deposit checks, monitor transaction history and track budgets.

These tips are provided by the American Bankers Association and the Iowa Bankers Association.