Leftover Money Goes Where?
Chris wants to know what to do with leftover money from varying budget items at the end of the month. Dave explains.
QUESTION: Chris on Twitter wants to know what to do with leftover money from varying budget items at the end of the month. Dave explains.
ANSWER: Some things you will carry month-to-month like, for instance, clothing. Most people don’t buy clothing every month. You may carry your clothing budget month-to-month. If your food budget is running over every single month and you’ve got money left over, you’ve got too much budgeted then and you need to adjust the amount you’re putting in your food category. Other items, if they’re just miscellaneous with a few dollars here and there, you can either carry them over or you can combine them and throw them to a miscellaneous fund or the blow category.
If you continually have money left over at the end of the month in a category that you should be going through like food or gas or something like that, then you’re budgeting too much, and you need to adjust your budget down. Some categories will carry over. If it’s just small amounts here or there, just rake it together and dump it into one category or something where you’re struggling a little bit.