Saving With Seth: "Creating a budget"

WEST LAFAYETTE, Ind. - Saving money isn't always easy. That's why News Channel 18 is bringing you tips each Wednesday to help keep more "green" in your pocket. This week we're focusing on how taking a second look at what you spend, could surprise you. 

"The first step into making a really realistic budget is track your spending for a week, or a few weeks a month, just to see where your money is currently going," said Elizabeth Kiss, Purdue Consumer Science Extension Specialist. "Then you can analyze that and decide if that is how you want to be spending your money."

Kiss says it is important to set your budget goals and write them down. Although many people may already know how much they spend each month on the big payments, they may not plan for unexpected bills or other everyday expenses. Kiss said planning ahead could mean saving money.

"If you know where your money is going you can then make a decision," she said. "Are you spending your money in ways that are consistent with your values and that will help you achieve your long term goal?"

Kiss says it's often hard to admit the differences between your needs and your wants. She says people must plan ahead if they want to build their bank account.

"Put money in savings first," she said. "Don't leave it to the end of the month thinking 'Oh, yeah, I'm going to save whatever I have leftover.'"

Kiss added, "There's not always a lot of money left over."

She also suggests people start saving for what she calls "seasonal" purchases. She says putting money aside all year long can come in handy for Christmas, birthdays, and other holiday spending.

We have linked additional resources including worksheets to help you plan your budget here.

Kiss also points out that next week is "America Saves Week." The program encourages Americans to pay off debt or put money aside in savings. For more on the program click here.