Is your New Year’s resolution to be more mindful of how you spend your money? Budgeting is a practical way to stay in charge of your money – even when life gets unpredictable. Having a budget means knowing exactly how much is coming in and going out each month and planning where and when to spend. Better Business Bureau Serving Eastern Carolinas (BBB) has tips on how best to curate a budget for 2026.
“Creating a budget at the start of the new year will be vital for success,” said BBB President and CEO Mallory Wojciechowski. “Start by calculating your income and expected expenses. Find a budgeting system that will work best for you and your lifestyle.”
BBB’s Tips for Creating a Budget for the New Year:
Calculate your income. Figure out your monthly net income after taxes and deductions so you know how much you bring home. If you have several sources of income, you may need to check your bank accounts and pay stubs or consult your accountant on this step to be sure you start accurately.
Track your spending. Whether you prefer an app on your phone, computer software, or simply a notebook to jot down your expenses, keeping track of your spending is critical. You can use this budget worksheet from the Federal Trade Commission to calculate your income and expenses. Nerdwallet (a BBB Accredited Business) suggests trying the 50/30/20 rule. Allow 50% of your income for your needs, 30% for wants, and use 20% to pay down debt or save.
Choose a budgeting system. Consider your financial goals and select a budgeting system that works best for you. For example, a cash-based system can help curb overspending. A zero-based budget, where you account for every dollar you earn each month, is great for people who love to plan.
Contribute to your retirement. Ensure you contribute enough to your 401K plan to get the full matching contribution from your employer. If you get a raise at your job, try putting that extra money into your retirement account. You survived on that income for this long so that you may not miss that extra cash, and your retirement account will significantly benefit. The U.S. Department of Labor offers ways to prepare for retirement.
Save for the big things. Big purchases, such as vacations or holiday gifts for the whole family, can easily blow your budget. Avoid going into debt for these expenditures by saving up ahead of time and only spending what you were able to save. Many banks and credit unions offer savings clubs that might help.
Build an emergency fund. Car repair, home repair, unexpected medical expenses, or job loss can easily throw you off track regarding budgeting. Financial experts suggest setting aside an emergency fund for six months of living expenses. If that seems too ambitious, start smaller. An emergency fund of even $500 can get you out of many financial scrapes.
For more information, the BBB’s Financial Wellness HQ has more tips on how best to spend and save your money.
For Moore news delivered straight to your inbox, please click here to sign up for the free Sandhills Sentinel e-newsletter.
Contributed. Feature photo via Canva Stock Images.
