The new year is often associated with New Year’s resolutions and changes in one’s habits. Whether your New Year's resolutions are big or small, creating financial goals is a resolution that many should consider at the start of the new year. Here are some budgeting tips to start off the new year:

Review Last Year’s Expenses

At the start of the new year, it is important to review your expenses from last year. Maybe you noticed that you spend a lot of your income on buying takeout food or maybe your subscriptions to your streaming services are adding up. Realizing what you are spending your income on is important to determine what you can do to reduce your expenses. You can now reduce your expenses by ordering less takeout and simply cooking at home or you can choose to cancel the streaming service that you use the least. Reviewing your previous year's expenses is important in money management and can help you save money in the new year.

Set and Track your Monthly Budget

No two months may be the same and that also goes for your monthly budget. It is important that when you are setting your budget, you review it monthly and make changes according to your life changes. Sometimes there will be months where your income may change depending on the hours you were able to work. Your digital expenses may be higher other months depending on your usage or you simply had unplanned expenses come up. When events like this happen in your life, it is important to review your budget monthly and update your budget accordingly.

Set Up a Savings Goal

Setting up a savings goal is a great way to put your savings to good use. Whether you are setting a savings goal for a trip or for a big purchase, it is important to know how much you want to save, and when you would like to meet your savings goals. For example, if you are planning on going on a trip to visit your family in November, you can set a savings goal now to successfully reach your goal. Let's say a flight back home during the month of November typically costs you $300 round-trip and you are able to contribute $50 towards your savings goal each month. This means that you would meet your savings goal of $300 for your trip home in six months. Setting up a savings goal allows you to determine how long and how much you will need to save in order to reach your desired goal.

Plan Ahead

It is never too early to think about the future and plan ahead. It is important to be prepared for life events and any emergencies that may come your way. Planning ahead is important in order to ensure that you have enough money to pay for your regular expenses and be able to afford big expenses like going to college or purchasing a car. If you know that you will have a big expense down the road, such as buying a car, it is important that you prepare financially. When you plan ahead, you are able to understand the expenses and fees you should expect when making your purchase and you will be better able to budget accordingly. Planning ahead allows you to be prepared for any expenses that may come your way down the road.