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Thread: I think I'm ready....
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05-22-2011, 10:49 AM #16Registered User
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Instead of budgeting $100 for clothes "in case you need it" why not budget a much smaller amount that gets put aside and accumulates. My clothing budget is $30 a month (it would be less if I could find cheaper work shoes). If I don't need anything, that money goes into a "roll over" savings account (I keep it separate from my EF, down payment and retirement savings accounts). Then, if in a few months I need to buy something, the money is available.
This works for me because my budget isn't changing all the time (this month I had $100 for clothes which I used but the month before that I used that $100 for savings, but next month I might need a new jacket which will be over $100, which category will I take the extra money from???). Clothing is always $30 a month.
I use this "roll over" account for multiple budget categories, mainly the ones that are used less frequently (like clothing or gifts) or bills that can vary a bit each month (like my cell phone). If this doesn't make sense, PM me and I'll try to explain it better.I want to kill my mortgage! 192,391/197,370 (since July 2011)
I'm attempting to live by the principles of The Compact in 2012. Wish me luck!
2012 Financial goals
- make an extra $15k over and above any flying pay (1705/15000)
- pay an extra $1750 off my mortgage (557/1750)
- bring EF back to $10k - $3533 left to save
- avoid lifestyle inflation
- improve investment plan (change accounts) - *grumble grumble* Bank made a mistake, need to re-do paperwork
The Financial Goals I've achieved: increased RSP contribution to $300/mth, posted budget on FV for review, saved $1600 to go on vacation
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