Let’s get your financial priorities sorted for 2021. This is your budgeting 101 for the year ahead.
As we enter 2021, many community members shared that budgeting would be a major focus this year. Some plan to adjust previous budgets due to the financial challenges of 2020, while others aim to craft entirely new budgets to enhance retirement savings or make a home purchase. For some, this will be their first official budget, offering a clearer view of their spending habits.
Though reflecting on the past year is important, it’s also a reminder of how much is beyond our control. Many faced job losses or income drops, but these hurdles present an opportunity to reassess our financial decisions. Where is your money going? Are you on track for your long-term goals? What do you envision for the next year or decade?
This week, we welcome Peter Polson, founder and CEO of Tiller Money, to discuss essential budgeting choices. Tiller Money streamlines your personal finances by automatically updating Google Sheets and Microsoft Excel daily, eliminating manual entry — and we love that convenience! With numerous clients, Tiller Money empowers many to take charge of their finances with a system they can adhere to.
Join us as Jean and Peter explain budgeting fundamentals, including its true definition and how to initiate the process. We explore why many begin budgeting in January and what a fresh start means for our finances after evaluating what succeeded and what didn’t in the past year.
“It’s a moment to be deliberate,” says Peter. “Where should I allocate my money in the coming month, and what outcomes do I wish to achieve?”
We also discuss advancements in budgeting technology and how spending methods have evolved. “We can tap, click, or subscribe, and expenses can occur automatically. It’s effortless to spend money. Without intentional practices in managing and monitoring your finances, your hard-earned cash can easily slip away. That’s the essence of a budget: a purposeful approach to your finances,” shares Peter.
Jean and Peter highlight the significance of visualization in maintaining a healthy budget and how to enhance your chances of sticking with it. Tracking your income and expenses may seem straightforward, but it’s crucial.
Peter guides us through a step-by-step approach to crafting a budget for those starting anew and discusses the core components that comprise an effective budget.
In our Mailbag segment, we address inquiries about donating to those in need, assisting a first-time homebuyer overcoming past homelessness, and the process of getting pre-approved for a mortgage. In Thrive, we cover the new 2021 guidelines for negotiating job offers.
