Tracking spending may help add to savings

By JUDD WEIL

Staff writer

As inflation pressures household budgets across rural areas, many families could improve their finances by knowing where their money goes, according to Hillsboro accountant, Ken Koslowsky.

Koslowsky, who prepares taxes for area residents each year, said people often think there is nothing left to save at the end of the month, but few actually track their spending.

“Be sure to track your expenses so that you know where the money is going,” he said. “Then see what changes can be made.”

Rising prices affect rural and urban households alike, though the costs show up differently.

“Wages may be higher in cities, but so are living expenses, especially rent,” he said.

In a semi-removed area such as Marion County, long commutes can quietly drain budgets through fuel, vehicle wear, and lost time.

“I really wonder if people come out ahead by driving long distances to work,” Koslowsky said. “The wages may be better, but there’s also the added expense of commuting.”

For homeowners in older Marion County houses, Koslowsky said, better insulation, sealed ductwork and slightly lower thermostat settings can reduce energy bills.

For families juggling debt, he recommends setting aside some savings first, then budgeting the rest.

“Pay yourself off the top,” he said.

Koslowsky urges families to have emergency funds that ideally cover three to six months of expenses. Small, steady deposits still make a difference, he said.

“A small start is better than no start,” he said.

He also urges residents to shop around at local banks and credit unions for better savings rates and short-term certificates of deposit rather than letting accounts automatically renew.

For families who think saving is impossible, Koslowsky said, the first step is still the same.

“You won’t make changes until you know where the money is going,” he said.