Build a Strong Budget Using Online Money Management Tools

A budget is a powerful tool that does more than simply track expenses; it sets clear, practical guidelines to help you keep your finances in order. A budget offers valuable insights into areas where spending can be reduced and savings can be aligned with your financial goals. And when you maintain your budget through money management tools like myTrustmark^® online banking, you can monitor your account daily and take action if you detect unusual or suspicious activity. In this article, we’ll provide tips for creating a strong budget and share common signs of fraud.

At its core, a budget makes use of two pieces of financial information: your available income and all known expenses. Your income sets the limit for your budget, while your expenses create a roadmap for using it. Establishing a budget customized to your needs doesn’t have to be complex—just make sure it is tangible, so you can keep yourself accountable and make adjustments as needed.

Review recurring expenses

Documenting your recurring transactions is fundamental to having an accurate budget. Start by recording your consistent, essential monthly expenses that cover basic living needs, like utilities, mortgage/rent or car payments.

Next, focus on identifying any ongoing subscriptions, dues or membership fees and evaluate if they are really necessary. These types of expenses can put a strain on your ability to save money and are easy to overlook if you’ve forgotten about them. If you choose to cancel a service, be sure to note the cancellation date and watch for subsequent charges. Should you notice that charges are continuing, you can report them as unauthorized payments and potentially fraudulent.

It is worth noting that some recurring expenses may offer incentives for less frequent billing, which is a sound method to save money. These payments are typically tied to longer service terms such as quarterly, semiannual or annual plans. That said, non-monthly payments have a way of sneaking up on you, so don’t forget to include them in your budget.

Categorize daily expenses

You will also want to account for your day-to-day expenses to provide a clear picture of where your money goes each month. To make reviewing transactions easier, consider categorizing similar items in groups, like entertainment, dining out, general maintenance and pet care. Doing so will help ensure that you are not underestimating costs or assuming certain expenses take up a higher percentage of your paycheck than they really do.

Once your transactions are categorized, examine them closely to determine areas where you can scale back, allowing more funds to be saved or directed elsewhere. Areas to look at could include the frequency of dining out, making impulse purchases online or spending money on luxury items instead of generic or less expensive options.

Save for the future

When you invest time into tracking your expenses, it can seem responsible to prioritize immediate costs over future savings. Managing costs is certainly a priority, but your budget should also include savings for unexpected expenses like urgent car repairs or medical bills. It is a good idea to add an emergency fund to your budget to help prevent taking on new debt.

If you haven’t started an emergency fund, begin with a small goal, like $500. Dedicate a specific amount of your monthly budget to your emergency fund and keep contributing until you reach your goal. Then, continue to save until you reach the equivalent of three to six months of living expenses, which is the amount most experts recommend for a healthy emergency fund. If you need to dip into the fund, prioritize rebuilding it as soon as possible to stay prepared for any future emergencies.

Another important savings goal to consider is building a retirement nest egg. If your employer offers a 401(k), pension or other retirement plan, you should take full advantage of it. If you do not have these options, consider setting up an Individual Retirement Account (IRA) or money market account. Enrolling in a direct deposit option to withhold a certain amount of your paycheck, is a great way to automatically direct dollars towards your retirement.

Monitor account activity

Tracking all your expenses also helps you easily recognize irregular or potentially fraudulent activity. By spotting signs of fraud early, you can quickly act to secure your account and minimize losses. Below are a few fraud indicators to watch for:

• Suspicious/unauthorized charges appearing on your accounts.
• Bills/statements for new loans or services for which you did not apply.
• Unauthorized withdrawals on your bank accounts.
• Unexpected overdraft or late charges.
• Payments posting earlier or later than expected.

If you believe there has been fraudulent activity on your account, immediately report it to your financial institution. For more actions you can take, review our article What to Do if You Are a Victim of Fraud.

With myTrustmark^® online banking, you can manage all of your accounts in one convenient place and take advantage of powerful personal financial management tools to help you feel more confident about your financial health. You can create custom budgets, categorize your purchase history and track spending and savings trends. You can also set up account alerts to receive notifications of fraudulent or suspicious activity, posting of transfers or debits to your account, low balance notices and more. Learn more about the features of myTrustmark and enroll today.

At Trustmark, we believe the privacy and security of our customers’ information is of utmost importance. We will never request confidential information via email, text, phone or social media; however, we may ask you for your information to verify your identity if you call us.

If you receive any unsolicited emails, text messages or phone calls allegedly from Trustmark requesting confidential information, contact us immediately at 800.243.2524, Monday - Friday, 8 a.m. - 5 p.m. CT.