How to Budget for the Coming Year

An annual activity in my calendar involves looking at my finances and refreshing all my budget excel spreadsheets. I love doing these, it makes me feel in control of my present and my future; whilst I review the previous years spending and think about if my goals align with the way that I spent. This helps me think about where I want to focus my spending, saving and earning in the coming year.

This is a great tool for giving direction to your goals and for reviewing your purpose, its an activity I look forward to doing and will review every quarter to ensure that I am not losing sight of my goals...

1. Assess your current financial situation

Review your income sources
Evaluate your monthly expenses
Analyse your savings and investments

2. Set financial goals

Short-term goals (e.g., saving for a vacation)
Medium-term goals (e.g., buying a car)
Long-term goals (e.g., retirement savings)

3. Create a detailed budget plan

Choose a budgeting method (e.g., zero-based, 50/30/20 rule)
List all sources of income
Categorize your expenses (fixed, variable, discretionary)

4. Track your spending

Use budgeting apps or spreadsheets
Monitor your expenses regularly
Adjust your budget as needed

5. Plan for irregular expenses

Identify annual or semi-annual expenses (e.g., insurance, taxes)
Allocate funds monthly to cover these costs

6. Build an emergency fund

Aim for 3-6 months' worth of living expenses
Set aside a specific amount each month

7. Review and adjust regularly

Schedule monthly or quarterly budget reviews
Adjust for changes in income or expenses

8. Stay motivated

Celebrate small milestones
Stay focused on your financial goals
Treat yourself

Conclusion

Budgeting for the year 2025 requires careful planning and regular monitoring. By following these steps, you can create a realistic budget that helps you achieve your financial goals. If this is something you have thought about but don't know where to begin - contact us!

Do you budget for the New Year?

0%No that's scary!
0%Of course! Me and my spreadsheets are inseparable
0%I don't know how - would love to learn
0%Yes :)

How to Budget for the Coming Year - 2025