Budgeting for Beginners

Who needs a budget? According to WaterStone Bank’s Caleb Quakkelaar, just about anyone! A Community President who gets requests for budgeting advice from customers of all ages and income levels, Quakkelaar sees firsthand how committing to a budget can improve financial outcomes. His experience has taught him some practical strategies that hold true across a wide variety of budgeting scenarios.

Step 1: See the Big Picture
The first step is getting in the right mindset. “Budgeting isn’t about cutting out all the fun,” Quakkelaar says. “It’s really about making sure your money is aligned with your priorities. That way you can reach your goals without feeling stressed.”

Quakkelaar recommends that his customers start with WaterStone Bank’s Digital Banking tools, available online and through the mobile app. By linking checking, savings, credit cards, and even outside accounts, it’s easier to see all your finances in one place.

“It’s hard to manage what you can’t see,” Quakkelaar said. “Once people connect their accounts in the app, everything is in one place. People are often surprised when they see where their money is really going.”

Step 2: Set Realistic Categories
If the idea of tackling every line item at once is overwhelming, grouping similar expenses can make the task a little easier. One popular approach is the 50/30/20 method:

• 50% Needs – housing, groceries, utilities, transportation, insurance, and other essentials you can’t skip.
• 30% Wants – dining out, travel, entertainment, hobbies, shopping, and all the extras that make life enjoyable.
• 20% Savings & Debt Payoff – contributions to retirement, building an emergency fund, or paying down loans faster

Quakkelaar says assigning categories removes some of the guesswork that is inherent in any spending plan. “If half your income is covering the basics, about a third goes to the fun stuff, and a solid chunk is growing your future, then you’ve got a healthy balance,” he says. As a bonus, if you’re using the digital banking tools, it’s easy to see if you’re staying close to those percentages.

In some cases, the 50/30/20 categories can seem too broad, so Quakkelaar says guidelines that define the “buckets” differently can help:

• Housing: 25-35% for rent or mortgage, taxes, repairs, or HOA dues.
• Food: 5-15% for groceries, dining out, and takeout.
• Insurance: 10-25% across life, auto, renters/homeowners, and health.
• Medical & Heath: 5010% for uncovered medical expense, prescriptions, or wellness.
• Transportation: 10-15% including car payments, insurance, fuel, and upkeep.
• Clothing: 2-7% for seasonal needs and occasional updates.
• Personal Expenses: 5-10% for haircuts, toiletries, gifts, or extras.
• Recreation: 5-10% for vacations, streaming services, and hobbies.
• Savings: 10-15% for retirement, emergency funds, and college savings.
• Debt: 5-10% toward students loans, credit cards, or other balances.

Like the 50/30/20 method, these budgeting guidelines allow you to adjust the categories to match real-life expenses and track progress month by month. Whichever method you choose, “The percentages aren’t rules, they’re starting points,” Quakkelaar says.

Step 3: Automate & Monitor
WaterStone’s Bill Pay feature makes it easy to set up recurring payments and eBills, preventing late fees and helping smooth cash flow. You can also set up spending alerts.

“Automation can be a game-changer,” Quakkelaar says. “When bills are paid on time and savings are transferred automatically, you aren’t tempted to spend what should be going toward your goals.”

Step 4: Set Goals You Care About
Whether you’re saving for a vacation, a new home, or paying down debt, you can create specific savings goals and track your progress visually.

“I always tell customers to celebrate reaching goals on the way,” Quakkelaar says. “Watching your progress toward a goal builds momentum, and that’s what helps people stay disciplined, and able to stick with their budget for the long haul.”

Final Advice
Quakkelaar stresses that the most successful budgets are both flexible and intentional.

• Review your spending regularly to avoid “budget creep.”
• Keep a small “fun” category so you don’t feel deprived.
• Ask for help when needed: Employees at your WaterStone Bank branch are always ready to walk through digital tools or be a sounding board for your questions.

In sum, with the right tools and habits, you’ll feel more in control of your financial life. “A budget that works is one that reflects your values and helps you sleep better at night,” Quakkelaar says.

Ready to start your budget? Download the WaterStone Bank Digital app or stop by your local branch to learn more.