Rookie Budgeting Playbook

In order to secure a "win" and retire comfortably someday, you need to become a seasoned pro in the fundamentals of personal finance. Your first drill? Budgeting!

By Laura Mellett

 

With so much that goes into saving and planning for retirement, it can be hard to know where to start. Early in your career, a good first step is making sure you’re a seasoned pro in the fundamentals of personal finance.
Here are a few tips for getting your budget into winning form:

Set Goals for the Season

Build a successful budgeting game plan by identifying and writing down some short- and long-term financial goals. Make sure they are specific and measurable to ensure the best shot at success. And don’t be afraid of setting deadlines for achieving them.

Keep Score

Keep track of all expenses. Yes, all of them. When you track every purchase, you have a clear picture of where your money is going, and your true spending habits will start to emerge.

Stick to the Game Plan

Every good coaching decision starts with a solid game plan. Creating a budget allows you to allocate funds for necessary expenses and stick to your savings goals. Being realistic here is key, so review your playbook often and don’t be afraid to make adjustments so you can stick to your overall spending plan.

Practice, Practice, Practice

Strive for continuous improvement by looking for opportunities to become more financially savvy and practice good money habits. Read books, check out courses and take a little time to learn about your TCDRS retirement benefit, too.

Play by the Rules

While a little splurging within budget is totally okay, avoid getting sidelined by major impulse purchases by shopping with a plan in mind. Learn from mistakes and stick to the budget like a well-disciplined athlete following the rules of the game.

Don’t be Afraid to Call an Audible

Be on the lookout for tactical adjustments that can save you money. Look for ways to reduce monthly bills, such as managing subscriptions and negotiating with service and insurance providers.

Be Smart with Your Play Calling

Set up automatic transfers to your savings accounts. Like plays in a game, stick to the fundamentals. Setting up automatic bill pay can also help you avoid late fees. By setting it and forgetting it, you can begin reaching your financial goals without thinking about it.

Play Defense

Building an emergency fund ensures that when life happens, you are prepared. Squirrel a little away when you can, and when you get an unexpected windfall, consider putting most of it here as well.

Build a Winning Team

Stay committed to your budget and financial goals by surrounding yourself with people who understand them and will help you achieve them. A budgeting app can also help you see the progress you are making.

Celebrate Wins

Reward yourself for meeting financial goals in a budget-friendly way. Get that latte you’ve been craving. See a movie with some friends. The name of the game is balance!

Personal Finance