budgeting,  mom

Why do a budget reset?

September 6, 2019 /

A budget reset to me is when I look at my monthly budget of income and bills and make adjustments to the different categories. Some bills alternate between seasons (gas bill is high in winter, electricity bill is high in summer), I may have a new grocery bill goal or there is a change in income.

When should you do a budget reset?

  • new job (increase or decrease in pay)
  • loss of job
  • when you realize your budget is not working for you
  • when a recurring payment ends (car payment, medical bill)
  • you want to save more

How do you do a budget reset?

I have attached a form that I tweak every so often as changes need to be made. Some months I keep track of everything I spend while others I don’t. As we are about to pay off our car and summer bills have been paid, I will take a close look at my monthly budget during September and make adjustments to go forward in October.

Here are the steps I take:

  1. List all my reccuring bills (mortgage, electricity, car payment, insurance, tv, internet, medical)
  2. Estimate how much I would like to spend on groceries and household items each month. Make sure that it is a reasonable amount and that it fits in your budget
  3. Add some misc categories: we pay off our credit card bill every month but we do charge things every month so choose a reasonable amount that you want to stick to or under, date nights and outings, misc. spending such as target runs, clothing…, add a section for savings: whether it is a savings account, a vacation savings account whether it is $25 a month or $200 a month
  4. Add your monthly income
  5. Make sure that your spending is less than your income!
  6. Make adjustments to the misc categories to make sure you are planning to spend less than your income
  7. STICK TO YOUR BUDGET as much as possible

blank monthly budget

Now no one is perfect so you may have a month or two that you did not stick to your budget. Every year, I find that I spend too much in the summer so I am hoping to take that into account next year and plan ahead! This year it is taking me August and September to get back on track so I will start anew in October.

Make changes!

Since I am still recuperating from summer vacations and spending, I am making changes (and made changes) in August and September. I am limiting the amount I am spending on clothes, I am keeping track of my spending on groceries and I did not put any money in my vacation savings in August. My last car payment is this month so I am planning to save that money from October on by putting it into savings. I have found that the more money you have the more likely you are to spend it so I will set a recurring transfer once a month so I do not spend that money!

One little thing I did last week was to return some home improvement parts and items that we never used in projects. That was about $75 back on the credit card! And I am planning our family’s birthday bash on a tight budget! Updated on that: I was a little over budget but adjusted my grocery budget for the 2nd week of the month to help alleviate the stress on the budget and am not spending anything but birthday money next week.

I hope this has helped you if you have a need to reset your budget!

A bientôt!

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