Your Priorities Shape Your Budget

Raise your hand if managing your money feels more challenging than ever. The current economic landscape has left many people feeling stretched thin. According to a 2025 Intuit consumer survey, 61% of 18-to-35-year-olds are feeling financially stressed. And why wouldn't they be, with skyrocketing inflation, rent, groceries and other essentials?

Getting your spending under control in these challenging times is a priority, but budgeting may seem to be too restrictive to be an effective tool right now.

Budgeting doesn't mean you can't have fun or spend money on yourself. It is about prioritizing spending to ensure you have money for what matters most to you, whether that's streaming services like Netflix or Spotify, gaming, online shopping, or just socializing with your friends.

You may think you don't make enough money to worry about budgeting. However, if your income is tight, budgeting is crucial for identifying waste, cutting out unnecessary costs and ensuring you have money to enjoy the things you want.

A personal or household budget is an important tool for reaching financial goals, enabling people to better adapt to changing conditions and withstand periods of financial stress. Knowing how to track expenses and budget effectively is an essential skill that enables people to live within their means and feel in control of their finances.

Budgeting is about awareness more than anything else. When you understand where your money is going each month, you can create a budget to reduce your financial worries. For many people, the hardest part isn't following a budget; it's taking the first step and getting started. Once you have a clear picture of your finances, building a budget becomes a much more manageable process.

Sunrise Credit Union is happy to provide two simple sheets to help you track expenses and get started with creating a budget. The monthly budget tracker and the annual budget tracker work together to give you a clearer picture of where your money is going. Once you understand your spending habits, it'll be easier to adjust and ensure your dollars go toward the things you view as a priority. This includes setting financial boundaries and saying NO to spending that doesn't align with your priorities.

The first step is to use the monthly budget tracker to track your expenses for a month. We suggest tracking for three months before settling on what your monthly budget for the various items would be. Once you have the data for three months, transfer the average into the Annual Budget Tracker (BUDGET/MONTH Column). The BUDGET/YEAR Column should automatically calculate. Then, you can add your monthly data into the spreadsheet as well to give you a head start on tracking your revenue and expenses. From there, you can adjust your budget allocations as you see fit.

If you are looking for a guideline for budgeting, a great, simple framework for budget beginners is the 50/30/20 rule:

• 50% to NEEDS: Food, rent, phone, and utilities.
• 30% to WANTS: Subscriptions (Netflix/Spotify), clothes, gaming.
• 20% to SAVINGS/DEBT: Unexpected expenses or paying a credit card bill.

The nice thing about the 50/30/20 rule is that you can determine which items go into which categories, giving you the freedom to prioritize how you spend your money. But be careful not to "cheat"; make decisions on what goes where without wavering on the percentage of your income that falls into each category.

One final thing to consider in your budgeting process is an emergency fund. Not only will it cover tough situations like home or vehicle repairs, but it will also save you stress and give you peace of mind.

Prioritizing how you spend your money will help ease anxiety and set you up for long-term financial success.