Today I watched video two of the Financial Renovation Free Mini Course that I started January 1st. See this post here.
I really liked today’s video. It really helped me to look at my budget in a different way.
She addressed the exact issue that keeps my budget from working which is those pesky Miscellaneous and Unexpected expenses. The solution is to have a Miscellaneous Budget Amount set (mine will be $120) for things like office supplies, sales at Michaels, or an unexpected Vet appointment. Then at the end of the month, as I plan for the following month, I will look at what lies ahead and budget those things in like birthdays, outings, dues & subscriptions.
She also talks about prioritizing budgets like 1) Non negotiable: for me that would be mortgage, insurances, utilities. 2) Big expenses throughout the year planned or unplanned: Christmas, Vacation,and for us Homeschooling Curriculum. 3) Monthly Bills that are adjustable: pocket money, entertainment. 4) Then finally, Month-by-Month Category. This month for example we have 4 birthdays in our extended family but zero in February so I will need a birthday budget this month but not next month.
I re-did my budget and color coded each line to fit the above categories.
Oh, and she also encouraged us to do a Financial Bucket List with our spouse. I am hoping to to be able to do that at the end of this month along with our February Financial Planning.
I am excited for day 3 video!
Ligia
