2011 is here! Many people are making resolutions to start new habits in the New Year. This is a great time to create new financial habits. Look back at 2010 and see how much you spent and set a budget for 2011. It is easy to sign into your account via Advantages Online™ and look over where you spent money in 2010. Here are some items that are important to remember and can sometimes be forgotten when creating a budget:

1. Your every day expenses will most likely not decrease. It is a good idea to keep the cost the same or allot even more than you used in 2010. Make sure to include all items like utilities, all loans, insurance, gas, car services, groceries, medical expenses, and even things like a turnpike pass.
2. I have a few subscriptions that renew monthly or yearly for items like newspapers, magazines, movie rentals, and satellite radio.
3. Entertainment is often overlooked and can be expensive. I always like to put dining out into this category instead of groceries. Movies, concerts, and shows are important to include in this category as well. I noticed late in 2010 that I was spending $1.50 every time I visited the vending machine at the Credit Union for my afternoon caffeine fix. I was able to purchase the same soda (or pop -depending where in the U.S. you are) for $10.00 for 60 cans. I save myself about $1.33 per can by taking my own beverage to work every day.
4. Clothes and shopping can be overlooked when setting up your budget.
5. Vacations should be budgeted and this is a great time to open a Vacation Savings Account if you don’t already have one. I visit my brother a few times a year in Ohio and go to the beach at least once in the summer for a long weekend. These are trips I make every year, so it is easy to predict what the costs will be for the year.
6. When I looked over my expenses in 2009-2010 I noticed an increase in expenses for celebrations like birthdays, bridal showers, baby showers, weddings, and christenings. Fortunately for my friends and the economy (and unfortunately for my savings), I am at the age where all of my friends are getting married and having children.
7. Last, but not least (this list could go on and on) it is very important to save for the future and the unexpected. This is a great time to take a look at what you are contributing to your retirement accounts like an IRA and calculate what you may need for retirement. Also, make sure you automatically contribute to your savings every pay period. Unfortunately, the unexpected can happen. Last week, I was out doing some holiday shopping and someone backed into my car. Lucky for me, their insurance is going to cover this or I would have to pay my insurance deductible at “the most wonderful time of the year.”

After you have completed your 2011 budget, let us know how we can help. It might be a good time to refinance your home equity or auto loan with us to reduce your payments and give you a little extra savings. You may want to improve your credit score and we can help with REACH™ credit counseling. I want to thank you for a great 2010 and I look forward to an even better 2011. One of my many financial resolutions is to improve this blog. I could use your help. Let me know what topics interest you. I look forward to hearing from all 40,000+ members of UECU.

“Your savings federally insured to at least $250,000 and backed by the full faith and credit of the NCUA, a United States Government Agency.”

Written by Jaime B.