New Year, New Budget
December 28, 2023
Did you start thinking about New Year’s resolutions before the holidays even began? You’re in good company.
Many people start thinking about how to get a better handle on their finances in the year ahead while they gear up for holiday spending. In fact, better budgeting is a top 5 “achievable” New Year resolution. But where to start? And what type of budget should you use?
The good news is there are several easy, effective budgeting techniques that can help you spend smarter and save money. The secret is to find an approach that works for you—one you’ll stick with over time. The more you do it, the easier it becomes.
We’ll explain some of our favorite budgeting methods in the weeks ahead.
There are a few important basics that are the foundation of a successful budget, which you can start on today.
- Set short-term or long-term financial goals. Goals can motivate you to stick to your budget and help you measure progress. Are you aiming to pay off debt as quickly as possible, saving to buy a house, or planning for retirement? Different goals need different spending and saving plans. Goals may change as circumstances change, so it’s good to revisit them periodically.
- Track income and expenses for a few months. Some jobs have predictable salaries, while freelance, contract, and gig work provide variable income. Expenses can also be fixed (rent, for example) or variable (think groceries). Be sure to track all of your purchases (even cash!) in addition to bills and credit card payments.
Understanding your income and expenses is essential for a good budget. You may even find things you can cut back on right away. Sometimes just tracking what you spend can help you be more mindful and even small adjustments can add up to big savings.
Take time during the holidays to prepare, so you’re ready to budget better as of January 1. You’ve got this!
Visit RCU’s Financial Education Center to find more useful resources on achieving your financial goals.
PPP Forgiveness Application Deadline
Congress passed The Economic Aid Act which changed the deferment period from 6 months post covered period to 10 months post covered period. For example, if your covered period ended June 30, 2021, under the new guidelines the earliest your first loan payment wouldn’t be due until April 2022, and you have until then to request forgiveness. Please use the following calculation to help you identify when your forgiveness will be due:
- PPP borrowers may select a covered period anywhere from 8 weeks to 24 weeks.
- RCU is automatically calculating your loan due date based on a 24-week covered period, if you intend on using a shorter covered period please inform us immediately as this will impact your due date.
- Your correct deadline will be reflected in your online banking account.
If all or part of your PPP loan is not forgiven, your first loan payment will be due the first of the following month after a decision is made by the SBA.
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