Financial Literacy Lead Offers Advice on Budgeting
With access to online shopping and banking, it can be difficult to budget properly and inflation just adds an increase to what you normally spend.
“A budget is really the primary tool to help you achieve your financial goals and know what’s going in versus what’s going out,” said Lance Lance Hill, head of financial literacy at Bank of North Dakota.
Also, unexpected life situations happen, which is why an emergency fund should be created before an emergency occurs.
“You could potentially lose a job, you could have a medical issue, a vehicle issue, it’s just good to have some padding in your life,” Hill said.
Hill said it’s simple, after you pay your bills, keep track of what you spend on your monthly income.
“The more clarity you have to achieve your goals, the more likely you are to achieve your goal. Fuzzy goals don’t really come true if you can be clear about what you want, what your financial goals are,” said Hill.
Let’s not forget those credit cards that can be an easy way to get into debt, but Hill has some advice on that too.
“Talk to people you owe money to; your creditors. They don’t want you to be left behind, they want to help you as best they can. Talk to your creditors to keep that communication open,” Hill said.