"According to First National Bank, Living within your means doesn’t have to mean eliminating the things you love in life. Creating a detailed budget, tracking your spending, saving for unexpected expenses, and finding simple ways to enjoy your favorite things for less can help you avoid building up debt and struggling financially.
Be aware of all income and fixed expenses. Evaluate your current financial situation and create a budget containing an itemized list of your income sources and amounts (paychecks, pension, freelance, etc.) and all of your monthly bills (from your cell phone bill to your mortgage payment).
Create a list of essentials. Essentials include expenses that are necessary to live your daily life such as groceries, gas or transportation costs, and personal hygiene and health products. Make sure to separate your ‘needs’ from your ‘wants’ and do not include costs associated with entertainment, dining, or splurges on clothes or electronics.
Set a savings goal. Ensure that you are saving a portion of your income each month to prepare for unexpected expenses, as well as future purchases such as a family vacation or a new car or home. Use our online calculator‘What will it take to save for a vehicle, home, etc?’ to set a goal and help determine how much you should automatically transfer to your savings account each paycheck.
Track your spending and saving. Track all income, spending and saving contributions to stay on track. First National’s online banking allows you to monitor your accounts 24/7, easily pay your bills, and manage your finances.
Stick to a fixed monthly budget for your ‘wants.' Be smart when spending your discretionary income. Do you really need a latte every morning before work? Maybe cut back to once a week. Or instead of treating your family of four to an afternoon at the movie theater, rent a movie and spend some quality time together in the comfort of your own home. Setting monthly budgets and ensuring you don’t go over will only help you in the long run.
Constantly re-evaluate your finances. Your income, expenses, needs and wants can, and will, change over time. Major lifestyle changes such as marriage, starting a family, buying a home or starting a new job can all affect your finances. Make adjustments as needed to ensure you are still covering your expenses while saving for the future.
Keeping your goals in mind and making small changes to your spending and savings habits can make all the difference when it comes to comfortably living within your means now and providing a secure financial situation for your family for years to come."
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