Feeling overwhelmed by the idea of budgeting? You’re not alone! Taking control of your money does not have to be complicated. HPCU is here to help, and we’ve broken down the budgeting process in five simple steps. Let’s build a brighter financial future together! 

Step 1: Start with your Net Income! Now you may be asking yourself what is “Net Income”? Net income is the money you are left over with after all deductions, such as taxes, benefits, etc., are subtracted from your Gross Income.  

         Gross Income – Taxes – Benefits – Other Deductions = Net Income

Step 2: You then want to subtract your Essential Expenses from your Net Income. These are expenses you can’t avoid, such as your rent or mortgage payment, utilities, tolls or gas, and groceries.

         Net Income – Essential Expenses  

Step 3: Pay Yourself First! Subtract the amount of money you want to put into your savings account. This will ensure you hit your savings goals!

 Net Income – Essential Expenses – Savings

Step 4: Subtract your lifestyle expenses. These are the expenses you can live without but enjoy, such as subscription services, gym memberships, etc.

Net Income – Essential Expenses – Savings – Lifestyle Expenses

Step 5: Finally, some money for you! Once all those deductions have been made from your Net Income, you now know what you have left over, which will be considered Disposable Income, which is money you can spend as you wish.

Net Income – Essential Expenses – Savings – Lifestyle Expenses = Disposable Income 

Congratulations! By following these five simple steps, you've successfully created a budget!

Ready to take the next step? Explore the "Savings Goals" feature within your Online Banking (Tools→Savings Goals) or HPCU mobile app (More → Tools → Savings Goals) to further enhance your budgeting journey and make those financial dreams a reality. Start building that brighter financial future today!