Something Pops up Every Month, so You Can Budget for That Too
Confession: Last month, I increased my budget by a couple hundred dollars. But it was a crazy month! My boyfriend and I went on a trip for his birthday. Okay, yeah, a month before that I wasted my budget too, but my cat was having health problems. My point: every month is a crazy month. You can also budget for this.
If you are like most people, you can understand this. Every month, something special “pops up”, takes you by surprise, and you lose track of your spending. According to Jackie Beck, a money writer, there is no perfect month . Birthday trips, cat problems, higher than usual electricity bills … it’s always something . Every month, she says, it seems like the extra money you should have left is disappearing. And when that happens, people often give up on budgeting altogether.
Here’s a better idea:
Less than ideal months ARE normal … So use them as an opportunity to learn and adjust to future months. For example, if you are caught without funds to repair a car, make a note to create a fund for car repairs – and then do so, even if it means you need to earn extra money somewhere or cut costs in other areas. If you find yourself usually spending $ 300 on birthday gifts over the course of the year, add that to your budget by launching a gift fund in which you invest $ 25 per month.
You may need to cut down on other areas to make room for these regular, irregular expenses, but the key is to take them into account. It also helps you pay yourself first . This way, you prioritize the most important things, so when something pops up, you are already covered. Second, if your budget is too tight, give yourself a break. Contrary to what most of us think, the budget shouldn’t limit you, it should support your financial goals. I love the way Beck says:
Instead, they should help you do what you want to do – whether it’s taking control of your finances for the first time, or saving on buying the latest expensive gadget as a pleasure.
If you find yourself continuing to cut your budget, it’s probably time to revisit it.
There is no perfect month | Moneycrush