No. of Recommendations: 2
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).
Print the post  

Announcements

UGC Disclosure Notice Regarding Credit Card Posts
Community board discussions about credit cards are not provided or commissioned by banks who may have advertising relationships with The Motley Fool. Responses have not been reviewed, approved or otherwise endorsed by the bank advertiser. It is not the bank advertiser's responsibility to ensure all posts and/or questions are answered.
TMF Credit Center
The Motley Fool Credit Center arms you with real tools and simple messages, that will help you in every credit situation.
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.
Advertisement