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How to Create a Budget You Can Actually Stick With

March 4, 2021 by Katie E. Moore, CDFA®

A man and a woman sit together reviewing their household budget.

Do you feel like your finances are out of control? Are you charging too much on credit cards each month? Do you sometimes wonder where you are going to come up with enough money to pay your bills? If any of these describe your financial situation, putting a budget in place could help. Here are five easy steps to take to start the process of creating a budget that you can stick with:

1. Get an accurate picture of all of your income and expenses

The best way to start developing a budget is to begin tracking your current spending. For the next month, track every cash and credit card expenditure. You could use an excel spreadsheet or any of the online and app-based trackers available from your bank or a third party. This will give you the most accurate picture of where your money is currently going and will be helpful later in deciding what spending habits you can reduce or cut out altogether.

Create a list of your monthly bills. The names of each bill, the estimated amount ($20 rather than $19.95), and the date it’s due on. Make sure you also include quarterly or semi-annual expenses in your budget if you have them, such as real estate taxes, life insurance, and homeowner’s or renter’s insurance. Write down or enter your monthly income, as well as the total amount of your bill expenses.

2. Figure out your disposable income

Your disposable income is money left over after your monthly bills have been paid. This is the money that can be spent on your wants, not needs. To figure out your disposable income, add together your total monthly expenses and subtract that number from your total monthly income.

Total Monthly Income – Total Monthly Expenses = Disposable Income

If discretionary spending is too high, this is the best place to start cutting items from your budget.

3. Cancel or lower some of those monthly bill expenses

Aside from discretionary spending, such as dining out, shopping for clothing, or toys and housewares, there may be a way to reduce other bills. You can save more money by canceling that subscription service you rarely use or look for ways to save on your cell phone bill and car insurance. You can often log in to your account online or call your service providers and ask for current promotions and discounts.

4. Include savings in your budget

Budget a designated minimum savings amount as an expense. Based on what remains after monthly bills are paid, what of your disposable income can be moved into your savings? For each paycheck, set aside anything from $25 to $150 (or more) that you are certain can remain in your savings account each paycheck. Existing savings may help you prioritize bulking it up for planned or unexpected future expenses.

5. Double check that your budget is realistic

Don’t set your budget (and yourself) up for failure. Trying to trim your expenses is good, but do not try to trim it to the point that you won’t be able to live within that budget. For instance, if you don’t allow yourself any spending cash during the month for eating out, you may find it too restrictive. It then becomes easier to say “Oh well, I already spent $40 so what’s $30 more?”.

Instead of cutting out “fun” expenses entirely, budget them in—but at a lower level than before. Check your bank statement or receipts, can you spend less on that morning coffee run? Do you eat out every day for lunch? Try to cut that down to dining out only once per week—it will save you money and give you something to look forward to.

A great way to help stay on track is to continue to use that online budgeting tool that is linked to not only your banking and bill payment accounts but also incorporates your progress towards achieving your financial goals and plans. Some websites and apps include charts and graphic breakdowns of your monthly spending habits that will give you a better visual than a page of numbers.

One extra tip? Hang a picture or write down what you are saving for (big or small) to stay focused on your savings goals.

Do you have a meaningful goal that seems distant, or maybe don’t know where to start? Our team at Finivi is prepared with comprehensive guidance to help you achieve your financial goals. From budget and savings to college and retirement planning, and more.

Take a minute to fill out this form or call us at: (508)-870-0440 to find the best way to reach your financial goals!

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Filed Under: Personal Finance Tagged With: budget, budget tips, planning, saving, tips

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Eric C. Jansen, ChFC

Fun Facts About Me

When he is not researching the next great stock to add to client portfolios, you can find him travelling frequently with his family to Jackson Hole Wyoming.

  • Hometown: Chicago, IL
  • Birth Month & Year: November, 1964
  • Favorite Hobby: Goldmining in Nome, AK
  • Favorite Food: Steak at Charley’s Steakhouse in Orlando FL
  • Can't be interrupted when: Watching the Discovery Channel
  • Hidden Talent: Finish Carpenter
  • Something on bucket list: Obtain Helicopter Pilot License
  • Family Pet: Goldfish

Steven C. Johnson, ChFC

Fun Facts About Me

Steve would tell you that one of the best parts of the day is spent talking to clients and relationships that result from it. When away from the office, he loves to travel the back roads of New England enjoying all the great sites that can be found off the beaten path.

  • Hometown: Townsend, MA
  • Birth Month & Year: December, 1967
  • Favorite Hobby: Playing Hockey
  • Favorite Food: Chicken Caesar Salad
  • Can't be interrupted when: Watching the Bruins
  • Hidden Talent: Cooking – Makes a great Thanksgiving turkey
  • Something on bucket list: Travel to Italy and Greece
  • Family Pet: Max – our Pomeranian

Frederick M. Lane, ChFC, CASL

Fun Facts About Me

When not managing client portfolios, Fred can be found relaxing with family and friends.

  • Hometown: Nutley, NJ
  • Birth Month & Year: July, 1954
  • Favorite Hobby: Dog Walking
  • Favorite Food: Italian
  • Can't be interrupted when: Listening to Pink Floyd
  • Hidden Talent: Landscaping
  • Something on bucket list: Space Flight - Tourism
  • Family Pet: None

Catherine M. Gareri

Fun Facts About Me

When not caring for her clients Cathy enjoys relaxing in her yard at home.

  • Hometown: Bellingham, MA
  • Birth Month & Year: July, 1957
  • Favorite Hobby: Cooking and Entertaining
  • Favorite Food: Steak at the Capital Grille
  • Can't be interrupted when: It's family time
  • Hidden Talent: Dog Whisperer
  • Something on bucket list: Spending a couple months on the Almalfi Coast
  • Family Pet: In Between Mastiffs now so a little blue fish “Willy”

Katie E. Moore, CLTC

Fun Facts About Me

When Katie is not busy taking care of her clients, she spends her time being a mom to her two little ones, Owen and Isla.

  • Hometown: Modesto, CA
  • Birth Month & Year: September, 1982
  • Favorite Hobby: Swimming
  • Favorite Food: Mexican Food
  • Can't be interrupted when: I'm cooking
  • Hidden Talent: Climbed Yosemite's Half Dome, twice - no fear :)
  • Something on bucket list: See the Northern Lights and Potty Train my 2 year old
  • Family Pet: Caddy and Sierra – our two cats

Hesper Duval

Fun Facts About Me

Loves spending time with 2 daughters and enjoys participating in 5k obstacle races throughout the year.

  • Hometown: Charlton, MA
  • Birth Month & Year: October, 1981
  • Favorite Hobby: Running
  • Favorite Food: Cheesecake
  • Can't be interrupted when: Reading a good book
  • Hidden Talent: Interior Design and furniture restoration
  • Something on bucket list: To travel cross-country in an RV
  • Family Pet: Charlie and Nora, both black labs from the same litter

Donna Fournier

Fun Facts About Me

When not cheering for the Patriots, Donna spends her free time travelling throughout the United States looking for new haunted places to explore. She loves to wear her cowboy hat and boots when travelling out west.

  • Hometown: Swansea, MA
  • Birth Month & Year: February, 1961
  • Favorite Hobby: Exploring haunted locations
  • Favorite Food: Pizza
  • Can't be interrupted when: Eating my pizza
  • Hidden Talent: Rollerblading
  • Something on bucket list: Travel to Australia
  • Family Pet:  Had a pet skunk

Danielle Drew

When Danielle does not have her head in a book studying to expanding her financial planning knowledge, she enjoys anything active and outdoors, including visits to the beach and hiking.  

  • Hometown: Dennis, MA
  • Birth Month & Year: November, 1985
  • Favorite Hobby: Working out, concerts, and exploring wineries
  • Favorite Food: Lobster pot pie, cheeseburgers, BBQ, the list goes on...
  • Can't be interrupted when: Working out 
  • Hidden Talent: Country line dancing
  • Something on bucket list: To hike the 48, 4000 footers of New Hampshire
  • Family Pet: none, hopefully a big dog someday

Jay Willwerth, ChFC

Fun Facts About Me

Jay’s days are spent helping clients achieve their financial goals, followed by nights and weekends typically watching his daughters play competitive volleyball.

  • Hometown: Melrose, MA
  • Birth Month & Year: September, 1959
  • Favorite Hobby: Golf
  • Favorite Food: Anything at a Patriot’s Tailgate
  • Can't be interrupted when: Watching the Patriot’s Game
  • Hidden Talent: Competitive Volleyball Watcher (Mostly his 2 daughters)
  • Something on bucket list: Play a round of Golf at Pebble Beach
  • Family Pet: Bella, our Shih-poo
 

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