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Personal Finances / Credit Cards and Consumer Debt


Subject:  Re: Got debt? Date:  4/19/2014  4:59 PM
Author:  determinedmom Number:  308231 of 312185

There are choices.

At the end of the month, I could sweep that $13.72 into a savings category.

I could let it roll over and budget less next month (so, budget only $160, bringing the total in the category back to $173.72).

I could let it roll over and build a bit of a cushion in that category to be used in Nov/Dec when I buy extra stuff.

I could do sort of a combination and allow say, up to a $50 cushion in the category and sweep anything over that into a savings category.

This is what I like about YNAB which I often use. Whether I roll over an amount to the next month just depends. For example, dining out I roll over. I enjoy dining out and so if I have a lesser spending month I want to be able to spend more next month. But I don't want to go over my annual total.

On some other categories, spending is more variable so I roll it over. An example is groceries. I might spend $100 more this month than last month just depend on what is on sale or what I run out of, whether we have company, etc.

On other categories, though, if the amount is less than usual I don't really roll it over. I just take that unused money and allocate it somewhere else. An example of this might be the electric bill. I already budget electric bill according to time of year (instead of just dividing the annual total by 12). So if March I used a little less electricity than expected I don't add to April (if I consistently use less than expected then I just redo that entire budget category so that it is closer to what I am actually spending).
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