ALBUQUERQUE, N.M. — Fundamentals, fun and future – those are the three “F”s that our local financial expert says to remember for budgeting in the New Year.

David Hicks, of Oakmont Advisory Group, explains each as follows

Fundamentals (50%)

• Mortgage
• Housing
• Utilities
• Groceries

In essence, these are your essentials. Budget half of your take-home pay for these expenses.

Fun (30%)

These are discretionary expenses that you want but don’t necessarily need. Often, we overspend on this. That includes:

• Travel
• Going out to eat
• Entertainment
• Gifts
• Hobbies

You don’t have to sacrifice all the fun for the future. You can allocate money for fun things in the future so you don’t break the bank. Also, cashback and rewards can help.

Future (20%)

• Retirement
• Investments
• College savings
• Emergency funds

If you tally up everything and feel pretty comfortable, you can rebalance your budget.

Hear more of Hicks’ advice in the video above.