Creating a Budget

Creating a budget is a necessity for every household, regardless of size and income level. A budget will help you keep accountability of your money.  The budget will also serve as your roadmap for financial success, enabling you to set and obtain financial goals and make informed decisions about how you spend your money.  

Building a Budget in Three-Steps

1. Know your situation: Gain a strong understanding of your income and expenses. Ensure that every expense is listed in your budget, accounting for all financial obligations. Aim to balance your budget to reach a total of "$0" at the end of each month. We recommend utilizing a spreadsheet format for better organization. Our OFF Budget tool generates a customized spreadsheet based on your inputs, illustrating the impact of each expense on your overall income.

2. Set Goals and Prioritize: A budget without goals is like a ship without a destination. Your first goal should be an emergency fund- we recommend a $500 fund for single Service Members and a $1,000 fund for families. Once you have an emergency fund, your goals should revolve around paying debts off early. Once you are debt free your goals should be split between pleasure and investing.

3. Stay Fluid: Remain adaptive, flexible, and open to change as your budget progresses. You will have setbacks- things will break and unexpected expenses will come up; keep moving forward and stick to the fundamentals.