SAN DIEGO (KGTV) — Right now finances are top of mind for many people as they work to pay off their holiday debt. We checked in with a financial coach to see what the best practices are to keep your budget in check.
It starts with figuring out your financial road map — it's like playing Monopoly. What's your goal? Do you want to put money into savings, pay off debt, or save up for something specific?
Joy Hunt is a financial coach who owns her own business called Debt Free Joy Financial Coaching. She says first, list your expenses, but do it for each month because each month will be different.
"I would just start by laying out, this is what income I'm expecting to come in this month. And these are my priority expenses. We call those the four walls, your basic essentials, your food, your utilities, transportation, that kind of a thing. And then from there, any other things that I'm planning to do, planning to spend money on," Hunt said.
After you do the math, if your expenses are more than how much you're bringing in, then you have to make decisions. Either find more income or cut costs.
"Price out your phone, your car insurance. Those are the bills that we're kind of stuck with but you may not be stuck with that price tag. And it doesn't require a behavior change," Hunt said.
She also suggests using cash to pay for certain things so you can physically see and feel how much you are spending.
"I'm not going to pay my electric bill in cash I'm going to use my debit card but for restaurants for me is always tricky. I try to use cash if I've noticed that I've been struggling in that area. I'll just that amount for the month out. Some people do it by paycheck and say I want to take this amount out and put it in an envelope. When it's gone it's gone," Hunt said.
The last recommendation is to revisit your spending each week. She suggests using an app, a spreadsheet, or a budget planner. See how much you spent for the week and see how much you saved so you'll see if you're staying within your budget or if you have to tweak that month's plans.
And lastly, Coach Joy says make sure you celebrate your wins. Even the smallest win means progress.
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