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Make 2022 Your Best Financial Year Yet

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Make 2022 Your Best Financial Year Yet

If your New Year's resolution was to take control of your finances, you’re in the right place. We’re here to give you some ideas on how to make 2022 your best financial year yet. All it takes is some time, discipline and lots of motivation! 

1. Figure out your monthly income. 

Begin by determining exactly how much money (after taxes and deductions) you have coming in each month. If your monthly income varies, be conservative and estimate it on the lower side to be safe. 

2. Create a list of all monthly expenses. 

Write down every monthly expense you have.   Start with the fixed expenses that do not change each month.  These include things like rent/mortgage, car payments, and insurance.  Next, estimate what you spend on variable expenses such as gas, food and entertainment. 

3. Look back at your spending history. 

Now’s the time to look back at your previous months’ bank statements and credit card statements to determine your spending history.  What have you been spending money on and can you break those expenses down into specific categories? This step can be eye opening to see exactly where your money is going.  

4. Adjust your budget. 

Once you’ve looking back at your spending history, decide how much you want to spend on each of these expense items and categories going forward.  A budgeting app can help you do this.  Make it a goal to track your expenses and monitor your budget until it comes naturally. 

5. Build up your emergency fund. 

An emergency fund is a separate savings or bank account used to cover expenses of an unforeseen nature.  You never know what 2022 is going to throw your way, so establishing or adding to your emergency fund is crucial.  If you don’t have an emergency fund quite yet, this is definitely the year to start one! 

6. Do regular budget check-ins and adjustments. 

Once you’ve completed the above steps, it’s important that you continue to do regular check-ins. With time comes financial changes, so adjusting your budget every so often is also important.  

If you want to take your finances seriously this year, these steps are a great place to start.  You work hard for what you earn and want to do all you can to make sure you spend, save, and invest wisely.  Questions?  Feel free to contact  Peoples Bank of Kankakee County  and we’d be happy to help!