I'm always a little short at Christmas when it comes to extra dollars, and that reminds me that it's a good idea to budget for a good year so that you're not short at times that matter. So today, I'll budget for 2022, and I'll start that budget with the priorities.
What do you really need?
January is a good time to look over all the bills you pay in hopes of eliminating bills for services and items you don't really need. I'll begin with Internet services that are no longer necessary--so often you may subscribe to a service, use it once or twice, and then forget that you're paying a monthly fee for that service. Cancelling those subscriptions and other unused or under-utlized services and subscriptions is a quick way to save a few dollars.
What do you really want?
It's important that the money you spend is focused on what you really want and need. For example, we enjoy our home, so bills associated with keeping our home up to date, warm and welcoming are necessary for us. We also love the good times we spend with our closest family members--so we'll save up for a few of those good times.
What can you spend less on?
We all have areas of life where we can spend less money. For example, as a retired educator, I don't need a lot of clothes. I can save money there. Also, during our daily life, we eat and live simply--that's another place where we can spend less. Further, we don't need a lot of fancy items at this stage since it's more important to be with our loved ones and share a few nice experiences instead. So we can mostly stay out of the stores and focus our dollars on experiences rather than things. And, during the COVID limitations, we became quite good at growing and preparing our own foods, so we don't need to eat out often--we'll save that as a special treat now and then.
Can you make more money?
Financial security is a balance between not spending too much and making more too. We may sign on to a few jobs and efforts that earn us a few dollars too. We're on the look-out for the right fit of time and money.
What's your priority short list?
Knowing your priority short list will help you to be fiscally responsible and ensure that you have the dollars you need for the special events you desire. Our short list this year includes the following:
- Pay the important bills: college tuition, insurance, taxes, repairs
- Save for a few special occasions: graduations, children's sports events, simple vacations, holidays
- Save for long term dreams: house updates/travel/celebrations