Do you follow a budget each month? Roughly 74% of adults in the United States claim to use a budget each month, which sounds pretty good. Yet according to a Harris Poll conducted in March 2023, only about 29% of the adults in the United States actively review their budget each month. Why is it so important to review your monthly budget? Well, for one thing, if you are not reviewing your monthly budget and spending habits, you're missing details that could help improve your financial well-being and are simply looking at: What you earned vs what you spent, period. Without further analysis of your spending habits, you are hindering your ability to stabilize your financial foundation.

Luckily, Town & Country Credit Union provides members with access to a free Credit Score tool located within TCCU Online! One incredible feature within this tool is the Financial Checkup Summary. This summary provides an overview of your general financial wellness score, credit score, debt-to-income ratio, and spending ratio. Some of these scores will not be available until you scroll down and begin entering your Budget Breakdown information.

The Budget Breakdown is a handy tool on its own. It gives you more control over your spending by allowing you to document your income and expenses and hold yourself accountable, converting from a mental budget to a monthly budget review. This process can sound daunting and like a lot of work, and well, it is when you are first getting started. Tracking your budget and understanding your spending categories is extremely important for a healthy financial foundation, so the work will be well worth it.

Within the Budget Breakdown itself, you can review your spending in critical categories such as Housing Costs, Debt Payments, Groceries, and more. Each category is assigned a percentage target, which compares your current spending in that category to the target, helping guide you in the right direction. Having access to that categorical information helps define where your money goes each month, which gives you a real opportunity to make adjustments when possible.

Perhaps you want to know if you are in a good position to get a loan for the new car or boat you've been eyeing? Well, with categorical data within the Budget Breakdown mixed with the Simulation features within Credit Score, you can easily determine if you are ready!

Overall, taking the time to regularly review your budget isn’t just about tracking numbers it’s about understanding your financial habits and using that insight to make informed decisions. Whether you're working toward paying down debt, building savings, or preparing for a major purchase like a car or boat, tools like the Budget Breakdown can empower you to take control of your financial future. At Town & Country Credit Union, we’re here to support you every step of the way because better budgeting leads to better borrowing, and ultimately, better peace of mind.