Monday, May 5, 2014

Changes to a 3yr-old budget

I have started to restructure my budget to make it more realistic. There are new expenses that have been left to luck and unaccounted for, and some that I knew were coming, yet I didn't want to acknowledge. All for the sake of keeping this original budget intact because it was my first big effort to push forward.

Aren't budgets supposed to start with your expenses and be flexible? At this point, my budget has been living on borrowed funds (don't worry, I don't mean additional debt). This week I resolve to start from the beginning and build things up.

As you may have already guessed, some of the changes have to come about because of the car loan. Yes, I could gather a mere $170~$200 mo for the payment out of misc earnings or my PT job's wages, but that's not fair. It's not even right, to leave something like that to chance. Then there's the insurance increase. I honestly wasnt expecting it to double my current monthly rate, from $40/mo to $80/mo, but it did. Why do I need a $500 collision/comprehensive deductible?! Is there any way to plea for a higher deductible? I'd gladly set aside $1000 than pay such an increase in my insurance.

In total, we're talking about $200 extra a month. That'll be quite the hit to my plans, and I will most likely fall short of my goal to collect $12,000 by May 2015. I will work on narrowing the gap, but ignoring my new bills and new increases is not the way to do it.

I know some people redo their budgets often. I was almost embarrassed to admit, my basic budget is already 3-4 years old. I've done plenty of very small modifications due to taxes, things being paid off, pay raises, etc, but it's scarily similar to the one I started with. Time to switch things up and come up with a game plan. Will keep you posted! I will most likely post my current budget with exact numbers, and then maybe one or two budget proposals, if I can even come up with that many.

1 comment:

  1. Most budgets are fluid, and need to be reviewed periodically, just for the reasons you mentioned...things change, new additions, new deletions. I think you are so very smart for maintaining and sticking to a budget. Even if you fall a bit short of your goal, you'll be so much closer because you do this!

    Peace <3