I know there are many people who don’t budget, but for me, it’s been a lifesaver. I am a natural spender, not a saver, so putting artificial boundaries around my money is important. Over the years, I’ve trained myself not to touch some of it, to keep it off limits, and giving myself artificial boundaries around eating out and entertainment has helped us spend less over time.
One thing I’ve never been able to do (and I say “I” because Mr. ThreeYear has pretty bad money anxiety and doesn’t look at the budget) is get a month ahead in our budgeting.
We’ve been budgeting for ten years this month, and it’s the first month I’ve gotten a month ahead in the budget. Previously, I’d budget one paycheck at a time, so I wouldn’t fully find my budget categories at the beginning of the month (I have a habit of throwing any extra money we get into investment accounts). It worked, but I was never budgeting all at once. With budgeting one month ahead, you use this month’s income to fund next month. So you need to have a full month’s income saved, in addition to what you need to pay your bills for the current month.
Part of the reason I never got one month ahead was that I didn’t see the benefit. As long as our budget was working, why fix it? Sure, it was a little awkward to fund our essential expenses and then later fund our nonessential expenses (using our 50/50 budget) but it had worked for years, and we always had investing, saving, or debt payoff goals that seemed more important than getting a month ahead with our budget. Continue reading “Budgeting a Month Ahead”