New Year’s resolutions often include financial goals, which can help with general living and unplanned expenses.
A study from Fidelity Investments showed roughly 65% of respondents considered starting money saving habits.
Ohio Department of Commerce Financial Institutions Deputy Superintendent Rob Rutkowski says there’s a percent rule individuals can follow.
“Put five percent of your money into a safe account for unexpected expenses, fifty percent of your money should go toward your big expenses that establish your way of life, your rent, utilities, and then fifteen percent should go into retirement accounts.”
The overall goal when setting up a budget, notes Dover Phila Credit Union’s Katy Steinebrey, is to have financial stability.
“Have control of your current and your ongoing financial responsibilities and obligations. Being able to manage your finances effectively and understand what your finances actually are. Knowing where all of your income is coming from. Where’s your money going? What debts do you have? What’s the difference between a debt and an expense? Identifying those categories and really trying to build a budget on what someone’s expenses already are.”
Other tips include having positive discussions about finances, planning, and organize spending.
She points out that budgeting and dealing with money is a personal journey and individuals shouldn’t compare their situation to another’s.
“What someone else may be budgeting for or saving for might not be what you are trying to achieve so identifying your own goals and what steps you want to take in your financial journey will keep you on the path when you’re not comparing yourself with what other people are doing.”
An online resource the bank provides is Banzia, which covers financial topics from saving, insurance, retirement, housing, and other life expenses. Available at www.dpfcu.org, find the wellness library under the resources tab.
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