Saving & Tools jsangl on 18 Sep 2007 01:00 am
Eliminate Budget-Crushing Expenses
I love writing the word "CRUSHING". It is such a strong word. It also describes just how it felt when my budget used to encounter a huge non-monthly expense like Christmas!
We would not save a dime all year for Christmas and then realize on December 1st that it was probably time to start saving for it! The December budget would be CRUSHED so that we could pay cash for Christmas presents and avoid debt. I would feel like a snake who just ate an antelope. I would lay around saying, "I can't believe our budget ate the whole Christmas bill."
It was NOT fun!
Well, I found out how to eliminate these budget-CRUSHERS! Ready for the answer? Here it is. PLAN for them and save toward them monthly.
Look at the example below. There are four budget-crushing non-monthly expenses for this family. If they save $358 every single month, the money will be there when it is needed! Yes, it will tighten up the budget on a month-to-month basis, but it sure smooths it out too! The budget-crushing months filled with ramen noodles can be banished forever!
If you have a mortgage with an escrow account, think about it this way. Do you ever worry about paying for your property taxes or homeowner's insurance? Why? Because they collect the taxes and insurance from you on a monthly basis! That way, there is no concern that the taxes and insurance will be paid on time.
The day that Jenn and I started to do this was the day that our budget became a whole lot easier to stick to!
I have created a Monthly Escrow Account Form (Excel) that you can fill in to develop your own escrow account! It is located in the TOOLS page along with a number of other very useful items!
on 21 Sep 2007 at 10:56 am 1.JosephSangl.com » said …
[...] Eliminate Budget-Crushing Expenses [...]
on 21 Sep 2007 at 12:31 pm 2.Flexo said …
Hm, your art reminds me of the snake from The Little Prince. Was that intentional?
http://photos.ronamber.com/Images/France1999/ElephantInSnake.jpg
on 09 Jan 2008 at 10:10 am 3.I Was Broke. Now I'm Not! said …
Marching To Debt Freedom – Couple #1 – Month 04
Introduction
Couple #1 is THROUGH with debt! They have been married for many years and have two children. They are now four months into their march. Here is this month’s update.
What went well this month …
We paid cash for Christmas, and w…
on 31 Mar 2008 at 3:17 am 4.Roy said …
So…I assume this money just goes in to one savings account. What’s the best way to keep track of that one lump amount in savings and how much of that is Christmas money, etc?
on 05 Apr 2008 at 7:00 pm 5.I Was Broke. Now I'm Not! said …
Christmas is …
264 days away
Are you saving money for this KNOWN, UPCOMING EXPENSE? Learn how I save money for known, upcoming expenses HERE. Sorry, but the fabulous original artwork shown at that link has already been sold.
Read recent posts
on 06 Jul 2008 at 4:58 pm 6.JosephSangl.com » 4,000 Miles, Big Fish, and Mount Rushmore said …
[...] Best of all – it was paid for in cash before we ever left. There is NOTHING like a vacation that does not have debt following it home. You can learn how to save for Known, Upcoming Expenses like vacation and Christmas HERE. [...]