Budgeting For the New Year
As each New Year approaches, social media accounts and casual conversations are often flooded with talk of resolutions or goals for the upcoming year. People resolve to lose weight, get fit, or to spend money wisely. All of these goals are important in the moment, but the importance seems to quickly fade. What is the key to fulfilling resolutions or goals?
The answer to those questions lies within the words written by Antoine de Saint-Exupery: “A goal without a plan is just a wish.” There is a stark contrast between goal setting and goal reaching. Those two concepts seem to lie worlds apart, but are easily united by simply creating a plan.
A very popular New Year’s resolution is to create and adhere to a budget for the following calendar year, with hopes of spending less and saving more. Though this concept is popular, it can be quite challenging to attain because it is usually prepared with zeal and comprised of lofty, unrealistic goals. Therefore, it is imperative to set goals that are S.M.A.R.T.; Specific, Measurable, Attainable, Realistic, and Time-bound.
Calculate your income, fixed expenses (expenses that are a set value each month), and variable expenses (utility bills, groceries, etc.) based off of a twelve month average. This will paint a clear picture of your disposable income (money that is available after needs are met). From there, set a specific, attainable, realistic savings goal and set a time limit for achieving that goal.
Now that you have a budget and savings plan in place, it’s time to execute it. Utilizing products available through your local financial institution will greatly improve the success of your savings plan. For instance, if you are saving for a vacation, Centennial Bank offers a Vacation Club Savings Account that allows you to earn interest while maintaining a dedicated savings account for your vacation. Maybe you are still reeling from all of your Christmas expenditures and have resolved to be better prepared for Christmas next year. If so, a Christmas Club Savings account at Centennial Bank would be ideal for you. Centennial Bank offers a variety of savings accounts which are sure to accommodate your short or long term savings goals.
Whether you are saving toward a vacation, to purchase a boat or to make sure everyone has a Merry Christmas, it’s important to be S.M.A.R.T. and start planning today. Call on the friendly, knowledgeable staff at Centennial Bank to help you find the perfect savings account to fit your banking needs.