Budgets aren鈥檛 just for businesses and governments 鈥� families need them too. But in 2025, keeping one was no easy task. From furloughs to inflation, many personal budgets were pushed to the brink, Harrine Freeman, CEO of H.E. Freeman Enterprises, told 海角社区app.
鈥淎 lot of things have happened this year to kind of throw people off their square and it makes it difficult to stay on track with your budget,鈥� Freeman, leader of the D.C.-based financial planning company, said.
She said many families faced reduced income, medical issues and new caregiving responsibilities, which made budgeting even harder. Some had to cut holiday costs by asking relatives to bring food or stay in rental houses instead of hosting for a week.
For those who went off track, Freeman said the priority now is getting back on track and learning from mistakes.
Start by deciding why you want a budget, she said. Do you want to manage spending, recover from a financial crisis or save for something big?
鈥淚t鈥檚 easier to create a budget or stick to it when you have a goal associated with it,鈥� Freeman said.
Goals should be realistic and tied to something tangible, such as saving for a vacation or a down payment on a home.
Once you鈥檙e ready, she suggested beginning with a clear account of how much money your family brings in and spends.
鈥淪tart with how much money you make after taxes, and then look at all of your monthly expenses, and then any other expenses you have,鈥� Freeman said.
Include utilities, rent or mortgage and subscriptions. Check for automatic price increases and cancel 鈥済host charges鈥� or subscriptions you no longer use.
鈥淚f you have any of those, you definitely want to cancel those immediately and make sure that they’re actually canceled,鈥� Freeman said.
Go line by line and cut what you can. Reducing coffee shop visits, for example, frees up money for savings.
Don鈥檛 make your budget too confining.
鈥淵ou don’t want to make it too restrictive, because you want to allow to have some fun with your money,鈥� she said.
Always include savings. Freeman recommended automating deposits into accounts you can鈥檛 easily access.
鈥淵ou want to have at least three to six months’ worth of savings in your budget. And the best way to do that is to make it automatic,鈥� she said.
Plan for inflation by assuming expenses will rise 5% to 10% next year.
Freeman also said reviewing your budget regularly is critical.
鈥淩eview it at least every two weeks 鈥� so you can catch any areas where you need to adjust,鈥� she said.
If you鈥檙e tackling debt, choose a method that motivates you: Pay off the smallest balances first for quick wins, or start with high-interest accounts to save money long-term.
And don鈥檛 treat credit cards as extra cash, she advised.
Freeman said budgeting can feel overwhelming but remember: Changes are temporary and mistakes happen.
鈥淒on’t give up on yourself. Don’t beat yourself up if you make a mistake. Don’t beat yourself up if you overspend, learn from your mistakes, grow from them, and set up a plan so you don’t make those same mistakes again,鈥� she said.
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