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5. KEEP IT SIMPLE A successful budget must be easy for you and everyone in your family to manage, Nauta says. The key is to set up a plan that’s very easy to follow and doesn’t lose
momentum. That’s why he discourages complex spreadsheets for family budgets. Instead, Nauta suggests creating key categories for savings accounts — like vacations and house improvement funds
— where automatic transfers are made every month. His credit union allows him to do this with no charges. 6. REVIEW SERVICE CONTRACTS No family budget is complete without a thorough,
annual review of all service contracts, says Gregory Kurinec, a CFP in Downers Grove, Illinois. These include subscriptions, insurance policies, landscaping, warranties, Amazon Prime, cable
TV and health club contracts. It’s also a good time, he says, to review all lending contracts, including mortgage, car, lines of credit and credit cards. 7. PAY YOURSELF FIRST The single
most important “bill” you pay in your monthly budget is the one you pay to yourself, says Jordan Benold, a CFP in Frisco, Texas. That means you should set your investments and savings on
autopilot so that they automatically get paid at the beginning of the month. And if, perchance, you receive a bonus or raise in 2022? Well, the first place to consider stashing that — or at
least part of that — is in your investments or savings. 8. CHANGE THE BUDGET BEFORE A MAJOR PURCHASE Sometimes there are budget hiccups that surprise you — and sometimes there are budget
hiccups that delight you. In either case, if you kinda, sorta know they’re coming, work them into your 2022 budget, Nauta says. For example, if you’re thinking about buying a new car, factor
the monthly payments into your budget before making the purchase. Maybe the $700 monthly payments put a serious nick into your home improvement budget — or maybe you ultimately decide to
purchase a cheaper car. 9. CONSIDER THE UNKNOWN It’s hard — and not very fun — to plan for the unknown. But if you fail to factor this into your annual budget, it’s bound to happen. You
know, the neighbor’s tree that falls on your house. Or the septic tank that backs up. Or both. “Give yourself some wiggle room,” advises Andrew Houte, a CFP in Brookfield, Wisconsin. “There
are going to be ebbs and flows that aren’t predictable.” How to Build a Budget for Your Goals 10. COMMUNICATE MONTHLY If you’re working on your budget with a spouse or partner, you want to
make sure to set aside at least an hour — or so — each month to discuss finances, Nauta says. The goal is to have a certain amount of spending that is agreed upon ahead of time, so that you
don’t argue over the little stuff. Both people need to be engaged and part of the conversation. 11. CHECK WHAT YOU’RE DOING There is nothing magical about an annual budget. The magic is in
sticking with it. The best way to stick with a budget is to check spending progress each week against the target budget amount, says Sallie Mullins Thompson, a CFP in Washington D.C. She
suggests doing this for at least the first six months of the new budget year. If you’re staying on budget, congratulations! If you’re off budget, readjust.