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Just like starting a new diet and swearing off carbs, making a household budget can be a New Year’s resolution that may be hard to accomplish. 

According to Ohio Credit Union League, only two in five adults said they had a budget and kept close track of their spending throughout the year.

If it’s so important to track personal finances, then why do we have such a hard time doing it?

The Journal of Consumer Psychology, talks about how humans can only restrict ourselves so long before they indulge.  Just like starting a new diet, we tend to see budgeting as restrictive and therefore struggle with the motivation to stick with it.

Trying changing the way you look at budgeting…instead of thinking what am I cutting out? Ask yourself, what are you saving for? That way you are more successful at sticking to it

As you ramp up your resolutions for 2020, here are some tips to help you exercise some good budgeting habits and overcome the craving to spend.

Start Small. It takes weeks to form a new habit, and the same thing applies to tracking your income and expenses. In the beginning, keep it simple. If your spending plan is too complicated or restrictive, you will not stick to it.  Mobile apps such as our Online Banking App can cut a lot of the work and help you track your spending habits.

Pay Yourself First. Put away a specific dollar amount each paycheck into a high-yield savings account.  Make sure this is done before you pay bills.  Using direct deposit or our Remote Deposit Capture can help streamline the process.

Consolidate Debt. Take a look at the interest rates on your credit cards and transfer balances to lower interest rate cards. This can help you save money and lower your monthly payment. Our standard rates start as low as 8.99% APR with an average rate of 10.99% APR, which is 38% below the industry average.

Increase Cash Surplus.  Shop around for the lowest possible rates on utilities, insurance, TV, internet and mobile plans. Check to see if these providers are offering any long term discounts.

Keep your daily expenses in check by packing lunches instead of eating out.

Invest in a good coffee maker to help reduce the craving from splurging on fancy coffee.  Take advantage free or low-cost entertainment options. A few examples are parks, beaches, hiking trails, and free library programs.