Hi y’all, I’m very new to this budgeting thing and was wondering if anyone had any good tips and tricks. I especially need help with payments that are every 6 months. I’m also looking for recommendations on budgeting notebooks because I’d rather have something physical than something online.
When it comes to payments that are not consistent, I personally take the payments and divide it by the months and save monthly for things that are quarterly, semi-annually, or annually. For example, if you have to make a $600 payment every 6 months, I would save $100 a month towards it. You could also do it per paycheck. I just put this money in savings until it’s due to ensure I don’t spend it. As for budgeting notebooks, there are templates on Etsy, but even if you just buy a notebook and manually track it, you could create your own budget that way.
I have an Ally Bank checking account which allows me to create up to 10 sub-accounts for budgeting. I divide my recurring bills like insurance, veterinary, holiday/birthday, property taxes, and home maintenance into monthly amounts, then deposit that amount into each sub-account. This way, I have the full payment when the bills are due. We are paid monthly, so I make 12 payments into each category, but if you’re paid weekly, you could easily divide it into 52 payments.
Creating a budget is really the cornerstone of good financial management. You should list your income sources (like salary, allowances, side gigs) and track your expenses, both fixed and variable. Allocate funds to savings and investments before spending on non-essentials. By creating and sticking to a budget, you can avoid overspending and ensure that you’re setting money aside for your future.
@Blake
That sounds solid. Any tips on how to start tracking expenses effectively?
For these types of irregular payments, I use what’s called the cashless method. I take a notebook and dedicate each page to a different fund for whatever I need to pay irregularly. I note the starting balance, what I add each month, and the end balance. Then, I just transfer the funds from all categories into a savings account and pull back as needed. It keeps my finances organized without having too much cash at home.
If you use a zero-based budget, you can assign those six-month bills as monthly installments. For example, my property tax is annual and insurance is six months. As long as I stick to what I allocated for spending, the money is automatically accumulating in my savings accounts. Additionally, I recommend having a buffer for miscellaneous expenses like car maintenance and home repairs. If you don’t have that margin built in, you might overspend.