Financial Bracket: How to Create a Winning Budget During March Madness

As basketball fans fill out their tournament brackets in preparation for March Madness, now is the perfect time to make a game plan for your finances. From prioritizing expenses to managing savings, here’s how to create a March Madness-inspired budget that will have you winning the financial game.  

Step 1: Strategize Your Spending 

Budgeting, like basketball, is a game of priorities. Instead of simply making a list of wants and needs, try creating various brackets to determine which expenses should stay and which can go. In the “Entertainment” bracket you might create a matchup between two streaming services, to determine which you want to keep and which can go. In the “Transportation” bracket you could pit cash for rideshares against a bicycle tune-up. However you strategize your spending, you may find that building a bracket is a fun way to do the hard (and important!) work of budgeting.  

Step 2: Get Match Fit 

To perform at your highest possible level, financially speaking, you need to understand the competitive environment of budgeting. When two expenses are in a head-to-head bracket battle, which one should win? While every person has a unique financial situation and will need a unique budget, here are some common financial matchups to watch out for: 

• Paying Off Debt vs. Saving Money – If you’ve got cash to spare, it’s usually a good idea to pay off your high-interest debt as soon as possible. Otherwise, interest payments will make a bigger and bigger dent in your wallet. 

• Buying a Home vs. Other Investments – Crunch the numbers before diving into home ownership, especially if you’re not planning to stay put. Maxing out your Individual Retirement Account (IRA) may be a smarter option.  

• Credit Card vs. Personal Loan – Wondering about the best way to borrow money? Personal loans tend to be superior for large, one-time purchases, whereas credit cards are the typical choice for smaller, everyday spending.

Step 3: Watch Out for Upsets 

Once you’ve got your monthly budget in place, keep your eye on the game. As in any exciting basketball match, there may be upsets. From sudden home repairs to a spike in gas prices, always expect the unexpected. When upsets do occur, adjust your budget accordingly. You may need to sacrifice some entertainment or eating out funds in order to cover a critical expense, but as any good coach will tell you—making the tough, responsible decision today is how you can win big in the future. 

Step 4: Celebrate the Wins 

You can’t come out on top in the game of budgeting if you don’t stay positive, and you can’t stay positive if you don’t celebrate the wins. Set aside a few minutes every month to reflect on the past four weeks of spending and saving, and make a note of where you managed to score. Did you add some cash to a savings account? Pay off debt? Reduce spending? Make a smart credit decision? Taking the time to congratulate yourself on these and other budgeting wins will give you the strength and stamina to keep up with your winning budget next month.