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04.16.2020 / Budgeting « Back to all articles

When Should You Adjust Your Personal Budget?
Man counting coins, saving and budgeting

Don’t Set It and Forget It 

Going a long time without a budget can be a huge mistake and getting it back on track can be a grueling process.  Budgets are important, but they need to be accurate, and it can take several revisions to get it just right.  Life happens, sometimes for the better, sometimes for the worse, but if circumstances change in a financial landscape, changes need to come to the budget, as well.  Be an active budgeter and over time it will circle around to a flexible budget that works. 

 

Consistent Misses 

First, a budget needs to be adjusted if a household is consistently over or underspending in any category  If the grocery bill is always higher than what was planned, an adjustment needs to be made in the budget because that is money becomes unavailable for other categories.  Or, if too much is set aside for other expenses, like car repairs, and that amount just keeps growing beyond what will ever be needed, perhaps it is time to decrease that amount. This is why documenting spending and creating a budget is important, to provide the flexibility where you need it and the savings where you can afford it. 

 

Unexpected Disasters 

Calamity never seems to be far behind, and catastrophes can wreck a budget.  If a new expense has just shown up, it is time to adjust the budget again.  Maybe the furnace in the house went out and a new one is needed.  That item must be added to the budget right away, especially if there is a financing plan with zero percent interest that expires in several months.   

 

Expected Blessings 

Sometimes budgets change because good things happen. Once that dream vacation is taken, it is time to eliminate that category and disperse those funds around to other areas, such as paying off that credit card or a smaller student loan that will reduce the total payment, freeing up extra funds for other items or expenses. Budgeting isn’t always negative, in this case, go back to the budget and make some positive changes! 

 

Changes in Expenses 

 

Sometimes categories that have been fixed will change. If, for example, you receive a letter in the mail stating that a payment amount is going up or down, go to the budget and make the adjustment.  Even items such as new taxes or higher gas prices can affect household categories.  Be flexible enough to roll with it.  If there is going to be a shortage, it is best to know well before it comes due and to have a plan to deal with the repercussions.  

 

Hectic Seasons 

 

Sometimes life can just be a little crazy or hectic.  Maybe a family member is in trouble and needs help.  Winter is notorious for jacking up that heating bill.  Whatever the change is, make the adjustment to your budget.  A budget should be constantly changing and evolving in order to map your financial liabilities and freedom. 

09.28.2020 / Borrowing

Should You Refinance Your Home?
Mortgage rates have reached record lows. With the economy now coasting into a recession, it is only natural that you…

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04.16.2020 / Budgeting « Back to all articles

When Should You Adjust Your Personal Budget?
Man counting coins, saving and budgeting

Don’t Set It and Forget It 

Going a long time without a budget can be a huge mistake and getting it back on track can be a grueling process.  Budgets are important, but they need to be accurate, and it can take several revisions to get it just right.  Life happens, sometimes for the better, sometimes for the worse, but if circumstances change in a financial landscape, changes need to come to the budget, as well.  Be an active budgeter and over time it will circle around to a flexible budget that works. 

 

Consistent Misses 

First, a budget needs to be adjusted if a household is consistently over or underspending in any category  If the grocery bill is always higher than what was planned, an adjustment needs to be made in the budget because that is money becomes unavailable for other categories.  Or, if too much is set aside for other expenses, like car repairs, and that amount just keeps growing beyond what will ever be needed, perhaps it is time to decrease that amount. This is why documenting spending and creating a budget is important, to provide the flexibility where you need it and the savings where you can afford it. 

 

Unexpected Disasters 

Calamity never seems to be far behind, and catastrophes can wreck a budget.  If a new expense has just shown up, it is time to adjust the budget again.  Maybe the furnace in the house went out and a new one is needed.  That item must be added to the budget right away, especially if there is a financing plan with zero percent interest that expires in several months.   

 

Expected Blessings 

Sometimes budgets change because good things happen. Once that dream vacation is taken, it is time to eliminate that category and disperse those funds around to other areas, such as paying off that credit card or a smaller student loan that will reduce the total payment, freeing up extra funds for other items or expenses. Budgeting isn’t always negative, in this case, go back to the budget and make some positive changes! 

 

Changes in Expenses 

 

Sometimes categories that have been fixed will change. If, for example, you receive a letter in the mail stating that a payment amount is going up or down, go to the budget and make the adjustment.  Even items such as new taxes or higher gas prices can affect household categories.  Be flexible enough to roll with it.  If there is going to be a shortage, it is best to know well before it comes due and to have a plan to deal with the repercussions.  

 

Hectic Seasons 

 

Sometimes life can just be a little crazy or hectic.  Maybe a family member is in trouble and needs help.  Winter is notorious for jacking up that heating bill.  Whatever the change is, make the adjustment to your budget.  A budget should be constantly changing and evolving in order to map your financial liabilities and freedom. 

Need a
Loan?

Loans from $120 to $15,000. Get funded as soon as today!

09.28.2020 / Borrowing

Should You Refinance Your Home?
Mortgage rates have reached record lows. With the economy now coasting into a recession, it is only natural that you…