Budgeting: Staying Flexible is Key to Successful Planning

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Welcome to the next installment of our budgeting series! In this article, we’ll discuss Adapting to a Changing Financial Environment.

Want a budgeting refresher? Check out our Budgeting 101 article.

So, you built a budget. You carefully planned out your expenses, savings, and debt reduction strategies. You thought, Hey! This isn’t too bad; let me start looking to the future! You invested in index funds, bonds, or an IRA to make Future You proud. Then, life throws a curveball.

Life has a funny habit of messing up even the best-laid plans. Sometimes, it feels like you’re on a financial roller coaster, and the track keeps changing. You need to stay on course, but you don’t know how. Don’t worry—we excel at adapting. After this, you will, too!

Adaption Strategy 1: Reevaluate Expenses

We may sound like a broken record, but the first and most important step is reevaluating your expenses.

Your budget is a living document, much like a garden. Some plants (your fixed expenses) remain constant, while others (your variable expenses) require regular pruning. By revisiting your expenses and adjusting your budget accordingly, you can identify what's effective and what's not. You may not be able to eliminate some costs, but you can mold them to fit your budget better.

Pro Tip: Shop around for auto insurance! You might be surprised at how much you can save by comparing different providers.

Adaption Strategy 2: Optimizing Costs

Next, let's explore ways to optimize your costs.

Remember when you used to have piles and piles of DVDs at home? You'd sift through mountains of movies before you found the one you wanted to watch. Today, we have streaming services. The sifting has turned into scrolling, hopping from service to service, but we still struggle with what to watch. And our wallets feel that struggle.

Look at your subscriptions—we’re talking streaming, food delivery, and even pet prescription services. Did you sign up for a month-long trial three months ago and are now paying the full subscription fee? Is there a service you bought during the pandemic lockdown, but now that you’re going out more, you rarely use it? Can you have a watch party with a friend or family member who has a service you own but never use? Even a couple of dollars a month adds up!

Speaking of upgrades, let's talk apps. Take a look at your smartphone—are there any apps you're paying for but not using? It's time for a digital declutter! Usually, free or low-cost alternatives can do the job just as well.

Pro Tip: Here's an oldie but a goodie that never goes out of style: coupons! Using coupons is the golden ticket to long-term savings. And why stop there—become a price-aware shopper, no matter what you’re buying! Compare prices at different stores and online to get the biggest bang for your buck.

Adaption Strategy 3: Holiday Planning

The holidays may be the happiest time of the year, but if you’re not careful, they can also be the saddest for your wallet. Preparation is key to cruising into the new year stress-free. Make a plan and start setting aside money for holiday expenses now.

Pro Tip: We’re happy to help make the holiday season jolly with our Holiday Club Account. With systematic deposits, October 1st disbursement, budget control, and more, you’ll have plenty of savings to use during the gift-giving season.

Do you have more questions or want to dive into a topic we didn’t cover in this series? Check out our Financial Education resources from GreenPath. You can find fantastic tools to help with retirement planning, investing, debt reduction, and everything in between. Whether you’re looking for in-depth advice or on-the-go practical tips, EdiFi is here to help you grow your financial knowledge!

Because when you know more, you grow more.