4 Essential Budgeting Tips You Should Know

There’s no other way to say it —there is a very real possibility that we may be facing a recession soon. Whether or not it comes to pass, it’s important to start preparing—after all, it’s better to be safe rather than sorry. The best way to go about it? Budgeting.

At RMLEFCU, we make it our business to keep ourselves in the loop with the latest and greatest budgeting tips and tricks. Here are four essential tips you should start implementing in your budget to keep yourself and your family protected during these uncertain times.

Create a Realistic Budget

If you don’t already have a budget in place, it’s important to take action to change that. Having a budget that you can rely on is an instrumental tool to ensuring you’re making the most out of your money.

Regardless of if you’re starting from scratch or you have a budget you’ve been using for some time, take a few minutes to review your monthly income and expenses to ensure that all the money going towards your bills, rent, and savings is still sustainable. Cutting out non-essential expenses—like streaming subscriptions, eating out, or those morning Starbucks coffees—is also a great way to save money. Make sure to track your expenses in a spreadsheet or an an app (we really like Mint) to keep yourself on the right path. You can even login to the RMLEFCU app and check out the Financial Planning section to track your spending and set savings goals!

Build an Emergency Fund

With the uncertain times ahead, it’s important to build an emergency fund to help cover unexpected expenses. Start saving a small amount each month towards an emergency fund until you have three to six months’ worth of expenses saved. We strongly recommend setting up a separate account for your emergency fund to avoid dipping into it for non-urgent expenses.

Create a Debt Repayment Plan

If you have any debt, it’s important to have a repayment plan in place. Start by prioritizing high-interest debts and pay them off as soon as possible. Once you pay off your high-interest debt, move on to the next highest and keep going until you are debt-free. This will not only help you save money on interest but will also help improve your credit score.

Seek Professional Financial Help

If you are struggling to manage your finances, we strongly recommend seeking help from a financial expert. Whether it’s one of our very own Certified Financial Counselors or it’s a financial advisor, you have resources at your disposal that can make this process easier. You’re not alone!

If you’re an RMLEFCU member, you can take advantage of our financial education center for help with budgeting, financial advice, and more!

RMLEFCU is Here to Support You

Preparing financially for a recession can seem daunting, but with the right budgeting tips and tools, it can be done. Creating a sustainable budget, building an emergency fund, creating a debt repayment plan, and seeking professional financial help are all great steps to take to weather a possible recession.