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A12 BUSINESS
Thursday 25 augusT 2022
Budgeting can be a challenge.

Here are 5 tips to get started

By ADRIANA MORGA
Associated Press
NEW YORK (AP) — Budget-
ing is key to managing your
finances, whether you’re
trying to pay off debt, start
a rainy day fund or deal
with the consequences of
inflation.
Creating a budget is much
like trying to eat better or
exercise more — everyone
tells you it’s good for you,
but it’s hard to get into the
habit, said Colleen Mc-
Creary, consumer financial
advocate at Credit Karma.
“A lot of people think it’s In this June 15, 2018, file photo, cash is fanned out from a wallet
in North Andover, Mass.
over-complicated and a Associated Press
hard thing to do,” McCrea-
ry said. “Much like going to years. If 50/30/20 isn’t realistic for
the gym, the hardest part “It helped me to see how you, there are still ways to
is showing up, so you just beneficial it is, and that save and tackle debt. Start
have to decide that you’re we have more discretion- setting aside small quanti-
going to try it out.” ary funds when I follow this ties of money every month
Even with prices high due method,” said Rogers, an or set small goals, such
to inflation, Elena Pelayo, intake coordinator for a as choosing a restaurant
educator at How Money nonprofit organization. where you won’t spend
Works, a financial literacy Websites such as Nerd- more than $40, McCreary
organization, said there are Wallet or Money Fit offer said.
small steps you can take 50/30/20 calculators to “Small steps lead to prog-
to manage your money. help. ress,” she said. “It’s really
These include looking at This method works for many about progress, not perfec-
how many online subscrip- people, but it might not be tion.”
tions you pay for or how right for you if necessities McCreary recommends
often you eat in restaurants eat up more than 50 per- starting with one goal each
and cutting back where cent, in which case you’ll week, whether that’s sav-
you can. Here are five im- need to allocate less for ing a certain amount or
portant steps when you’re savings or things you want reducing the amount you
ready to create a budget: to do or buy. spend on non-necessities.
1. WRITE IT DOWN 2. BUDGET FORMAT “Don’t overcomplicate it,
Writing down all of your Writing down your after-tax don’t make it too hard for
expenses is crucial, said salary and then adding your yourself,” she said.
Pelayo. She suggests re- expenses in a notebook or Rogers, for example, usu-
cording every penny that a blank spreadsheet might ally tries to save as much
you spend rather than try- be enough to make a plan. money as possible when
ing to approximate, which But if you need help visual- buying groceries.
can lead to errors. izing what’s coming in and “I get the sales papers and
Pelayo recommends using going out, there are re- mark what we need and if
whatever method fits you sources available. it’s on sale. I try to do a tri-
best, whether that’s writing “There are lots of online angle of the stores to save
it down on paper, creating templates that’ll help you time and gas” she said. She
an Excel spreadsheet or us- look at spending catego- also buys in bulk, sticks to
ing a website. ries and expense catego- her grocery list, and goes
Next, she recommends ries for personal finance. shopping by herself to
categorizing where your in- And they’re really helpful,” avoid her son and husband
come should be spent. Al- Pelayo said. convincing her to buy ex-
ways start off with covering The Federal Trade Commis- tra items. Websites such as
your basic needs. sion offers a budget tem- Flipp, which shows digital
A well-known budgeting plate in a PDF format that flyers from major retailers
system is the 50/30/20 rule, can be printed, and Micro- around you, and Groupon,
where 50% of your income soft offers Excel templates where you can find cou-
is allocated for necessities for special occasions such pons for products and ser-
like food and rent, 30% for as saving for a wedding or vices, can make it easier to
things you want, and 20% home construction. If you save money.
for savings and debt repay- prefer apps, Mint, Pocket- But keep in mind that this
ment. Guard, and EveryDollar are only works when you use
Wiltrice Rogers of Allen among Bankrate’s top five coupons for items that you
Park, Michigan, has used budgeting apps. really need or were plan-
this system for more than 30 3. MAKE A REALISTIC PLAN ning to buy anyway.q