It may happen in January or February, or maybe not until June, but
your financial situation can change any time throughout the year.
And most likely will. It's important that your monthly budget plan
reflects these changes and stays current. That is why you must
update your budget frequently. I recommend re-evaluating your needs
every 6 months.
Your updated budget will need to include any increased or decreased
income, and/or any changes in the expenses or payments going out. It
will also need to reflect your short-term and long-term financial
goals, such as saving for a down payment on a new house or college
tuition for your kids (or yourself!) If you're paying off debts,
you'll need to adjust those items as well, since they should be
getting smaller and smaller every month.
I update my budget every quarter, but if that is too frequent for
you, begin with every 6 months as I mentioned. Whether it's a job
change, new activities for the kids, or car repairs, this is
necessary. If I didn't make changes to our budget plan throughout
the year when these things occur, I might spend the extra money
that's needed to cover the extra expenses or reduced income.
My favorite budget planning system is a simple one, I like to write
down my monthly bills and expenses and compare them to my income and
see where I can still manage to save money and save for retirement.
If I have to cut on extras or find ways of slicing expenses in half,
now I can because I see it all in front of me on paper. This
simplified system could easily be done on the computer as well, but
since I work online a lot, it's actually pleasant to hand write the
budget out on paper. I also like to take some time to review our
budget each month, to make sure everything is going where it should.
Having a set "pay bills" day once or twice a month will help you
keep your bills up to date, but just remember to keep your budget up
to date as well.
have
the courage to question & challenge the status quo... refuse to
accept "traditional" thinking and answers as fact....
~Kimlee
