Budgets aren\u2019t just for businesses and governments \u2014 families need them too. But in 2025, keeping one was no easy task. Here are financial tips for 2026.<\/p>\n
Budgets aren\u2019t just for businesses and governments \u2014 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 WTOP.\n<\/p>\n
\u201cA 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,\u201d Freeman, leader of the D.C.-based financial planning company, said.<\/p>\n
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.<\/p>\n
For those who went off track, Freeman said the priority now is getting back on track and learning from mistakes.<\/p>\n
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?<\/p>\n
\u201cIt\u2019s easier to create a budget or stick to it when you have a goal associated with it,\u201d Freeman said.<\/p>\n
Goals should be realistic and tied to something tangible, such as saving for a vacation or a down payment on a home.<\/p>\n
Once you\u2019re ready, she suggested beginning with a clear account of how much money your family brings in and spends.<\/p>\n
\u201cStart with how much money you make after taxes, and then look at all of your monthly expenses, and then any other expenses you have,\u201d Freeman said.<\/p>\n
Include utilities, rent or mortgage and subscriptions. Check for automatic price increases and cancel \u201cghost charges\u201d or subscriptions you no longer use.<\/p>\n
\u201cIf you have any of those, you definitely want to cancel those immediately and make sure that they\u2019re actually canceled,\u201d Freeman said.<\/p>\n
Go line by line and cut what you can. Reducing coffee shop visits, for example, frees up money for savings.<\/p>\n
Don\u2019t make your budget too confining.<\/p>\n
\u201cYou don\u2019t want to make it too restrictive, because you want to allow to have some fun with your money,\u201d she said.<\/p>\n
Always include savings. Freeman recommended automating deposits into accounts you can\u2019t easily access.<\/p>\n
\u201cYou want to have at least three to six months\u2019 worth of savings in your budget. And the best way to do that is to make it automatic,\u201d she said.<\/p>\n
Plan for inflation by assuming expenses will rise 5% to 10% next year.<\/p>\n
Freeman also said reviewing your budget regularly is critical.<\/p>\n
\u201cReview it at least every two weeks \u2026 so you can catch any areas where you need to adjust,\u201d she said.<\/p>\n
If you\u2019re 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.<\/p>\n
And don\u2019t treat credit cards as extra cash, she advised.<\/p>\n
Freeman said budgeting can feel overwhelming but remember: Changes are temporary and mistakes happen.<\/p>\n
\u201cDon\u2019t give up on yourself. Don\u2019t beat yourself up if you make a mistake. Don\u2019t beat yourself up if you overspend, learn from your mistakes, grow from them, and set up a plan so you don\u2019t make those same mistakes again,\u201d she said.<\/p>\n