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Creating a budget and sticking to it can be difficult for anyone. Money always seems tight, and there’s always something you need to pay for. Creating a budget requires discipline but is much easier when you have a specific savings goal in mind. You could create a budget to save for: 

• A family vacation 
• A child’s wedding 
• A new car 
• A down payment for a new home 
• A rainy-day fund for future expenses 

If you’re not sure where to start when it comes to creating and sticking to a budget for a large upcoming expense, The Middlefield Banking Company has collected some ideas for you.  

Budgeting Tip #1: Open a CD Account 

While many of us choose to save using a traditional savings account, a certificate of deposit (CD) account is actually a better choice for a long-term saving strategy. With a CD account, you receive a better rate than you will find on traditional savings accounts. CDs also limit access to your money by making you pay a penalty if you want to withdraw your money before the term is up. With better rates and limited access, you can grow your money faster. 

Budgeting Tip #2: Eliminate Unnecessary Expenses 

We all pay for things that we don’t need. We go out to eat too much when we can make something at home, we pay for subscription services we don’t need, we buy items online that we want, but don’t necessarily need, to name a few examples. If you evaluate all those things, you could potentially save hundreds of dollars per month toward your savings goal. 

Budgeting Tip #3: Use a Budget Tracking App 

Embracing technology will help you visualize where your money is going. There are a lot of budgeting apps out there that can help you create a budget and allow you to track your progress as you work toward your goals. Some of our favorites include: 

• Mint – An all-purpose budgeting app to create a clear snapshot of how to reach your budget goals. 
• NerdWallet – This app can help you integrate budgeting throughout your finances by helping you choose the right credit card, insurance company and much more. 
• Honeydue – This is a great app choice if you're looking to create a budget with your partner that you can follow as a family. 

For more tips on how you can create a budget that will help you reach your savings goals, please contact The Middlefield Banking Company to speak with our team.