New Year, New Budget: Your Guide to Financial Confidence

It’s a new year and many people are setting goals and making resolutions. Why not start with your money and setting goals to find a budgeting method you can stick to.

Budgeting isn’t about restriction; it’s about freedom. It’s the key to reducing stress, reaching your goals, and feeling confident about your finances. But here’s the reality: most people abandon their budget by February. Let’s change that.

Why Budgeting Matters

Budgeting gives you control. It helps you say “yes” to what matters most—whether that’s travel, paying off debt, or saving for something big. Without a plan, money slips through the cracks. With a plan, you can make intentional choices and avoid financial surprises.

And here’s something powerful: 47% of U.S. adults say money negatively impacts their mental health, and those with low financial well-being are three times more likely to experience anxiety or depression. Building a budget isn’t just about dollars—it’s about peace of mind and better overall health.

Four Popular Budgeting Methods

Not all budgets are created equal. Here are four approaches to consider:

1. Zero-Based Budgeting

Every dollar you earn gets a job—bills, savings, fun money. At the end of the month, income minus expenses equals zero.

• Pros: Total control, intentional spending, great for detail lovers.
• Cons: Time-consuming, challenging if income fluctuates.

2. 50/30/20 Rule

Split your income into 50% needs, 30% wants, and 20% savings or debt payoff.

• Pros: Simple, easy to remember, flexible.
• Cons: Harder if fixed expenses are high or income is irregular.

3. Envelope System

Traditionally, you use cash envelopes for categories like groceries or entertainment. Today, there are digital versions.

• Pros: Visual, helps curb overspending, forces discipline.
• Cons: Awkward for online shopping, requires planning.

4. Pay-Yourself-First

Prioritize savings before anything else—automate transfers as soon as you get paid.

• Pros: Builds savings fast, great for long-term goals.
• Cons: Requires consistent income, can feel restrictive if cash flow is tight.

How to Stick With It

Start small. Pick one method and try it for 30 days. Track your progress and celebrate wins along the way. Gamify the process—set challenges, reward yourself when you hit milestones.

Ready to Begin?

Budgeting isn’t about perfection—it’s about progress. Use the tools in our Digital Banking platform to set goals and monitor your spending. Your future self will thank you.

Here’s to a financially confident—and healthier—new year!