There is truly no better time to reset your budget than a New Year! The beginning of a year brings fresh new vibes and a renewed sense of hope for the future. Plenty of my successful clients got a nudge to change their finances over the holidays, and made a fresh start in the new year.
If you are ready to change at the beginning of the year, you are in great company!
Budgets tend to get a bad rap, so as I am writing this, I understand that you might not be super excited about creating a new one for January. LOL! But it is important to really think about what a budget actually means. Of course it is a plan for your money so that you can make wise choices.
But it’s actually more than that…
A budget is the plan or sketch of a commitment you are making to yourself.
Of course, this doesn’t mean that you can plan for every single outcome, but it is your intention with your money. The more your actions match your plan (budget), the more confidence you have with yourself and money. And a person who is confident with money feels much more powerful than someone who feels out of control with their finances.
So let’s create a budget for January that sets you up for success. Many times, clients become overly optimistic about their new budget. I don’t recommend this at all. Let’s get realistic about your expenses, budget and priorities and make a plan that is in step with your current life.
Let’s get you Winning!
Our main focus with a new budget is to carefully begin making small changes that will have a big impact over time. We are going to make a plan that is similar to your previous months’ spending, but with small, impactful changes.
Let’s get started!
Here, you will find a January budget that you can print and complete. But start thinking through these numbers with me.
Total Income for January:
Mortgage/Rent:Groceries:
Debt payoff (auto loan / student loan / credit card):
Sinking Funds (Travel, Home Maintenance, etc.):
Utilities:
Insurance:
Subscriptions:
Restaurants:
Personal Spending:
Household Expenses:
Emergency Fund:
Miscellaneous:
I find that it is helpful to go through your banking statements over the past couple of months to see what expenses you may have forgotten about, but need to add into your budget.
Next, you will want to keep track of these expenses and check in each week to see how your spending and budget are lining up. You may want to keep a Notes app on your phone to save ideas and changes you would like to make in February.
One last thing–before you start the month, I want you to look at the funds that excite you (for me it is Travel fund and Investments), and total up how much you could put into those categories if you stayed on budget for the entire year! What about two years?! What is possible for you and your family?
Now I want the vision of that to be the flame under you throughout this first month! What kind of Emergency Fund could you have? Imagine the relief of paying off Debt! Could you start planning for that Family Vacation?
If you have a spouse, do this activity with your spouse so that together you can decide your family’s priorities and vision together.
In January, I will be opening up just a couple of coaching spots. If you want to know more, click HERE to Schedule a Free Call.
