Atlantic Blog

Credit cards are the ultimate go-to for modern consumers, allowing us to shop around the clock - but they can also take a toll on our finances if we're not careful.  

Budgeting can help defeat never-ending credit card debt in two ways:  

• Identifying and planning for your recurring monthly expenses like rent, utilities, food, and gas with a budget can help you reduce your reliance on credit cards. 

• A realistic budget will help you put aside money so that you can begin repaying your outstanding credit card balances more aggressively.  

Keeping track of debt can be a challenging task that only gets amplified with each new debt you acquire. Consider a debt consolidation loan if you are in this situation to make tracking your monthly payments much easier. 

4. Build Your Savings 

Finances that are out of order can severely dent your savings goals. Just as you believe progress is being made, an unexpected bill sets your plans back to square one.  

A budget allows you to prepare for all your recurring expenses ahead of time. This organization makes it much easier to save because: 

• You know precisely how much money will be available after your monthly expenses. 

• You can automate the savings process through payroll deductions or automatic transfers. 

• You can put money aside at the beginning of the month, eliminating the temptation to spend the money frivolously.  

With many different ways to store your savings, our Free Kasasa Saver is a great place to start. If you do not require access to your savings money in the short term, consider getting a certificate to have your money grow for you.  

5. Identify If You’re Living Beyond Your Means 

Creating a budget helps to create clarity and understanding of your financial situation. Many may be surprised when they realize how little money is available for savings, or even worse, that their expenses exceed what's coming in each month!  

To ensure long-term stability, it's important to strive towards putting 10-15% of take-home pay into savings. Of course, this process requires hard work and diligent tracking, but the reward far outweighs any challenges. A balanced life ensures you stay on track financially now and down the road.  

Take a look at your budget and see where you can make some cuts. It's also important to reflect on why we sometimes spend more money than necessary, such as feeling bored or stressed out - small changes in our lifestyle could have substantial financial impacts. 

6. Improve Your Mental Health 

Most people don't think of increasing their happiness level through budgeting. However, creating and maintaining a budget can lead to two significant mental health benefits: 

• Financial Stress:  

Being financially disorganized can lead to unwanted stress and anxiety. From being unsure whether you can pay your monthly bills or cover an unplanned expense to postponing fiscal goals because of a lack of savings – money matters can weigh heavily on people.  

• Rest & Relaxation: 

At the other end of the spectrum, maintaining a proper budget can do more than reduce stress. When your finances are organized, and you're actively saving money, you can put funds aside for relaxation. Whether it's a rejuvenating massage or a weekend getaway with friends, a budget can provide the stress-free, guilt-free retreat you need to recharge and enjoy life. 

Quick Tips for Creating & Maintaining a Budget 

Following a budget can lead to many significant financial benefits. And while there are many types of budgets and ways to track your money, the best advice is to keep it simple. Here are a few tips to help you create and maintain a realistic budget. 

• Use a spreadsheet, like Microsoft Excel, to create a budget for the entire year. It helps to see how specific expenses affect your finances over a year vs. a month. 

• A year-long view also helps to plan for one-off expenses, such as birthdays, holidays, and vacations. 

• Review several months of account and credit card statements to identify recurring expenses and spending habits. 

• Monitor your spending regularly through online and mobile banking. 

• Schedule a time on your calendar each month to balance your budget and make any necessary adjustments.