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April 15, 2008


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Is there a problem in doing a mix of both? Budget for the year, then break it down by month?

We just budget by month. I suppose we could have a yearly budget, too, but it just seems like more work. :)

I think the reason for the study's results is that when people budget monthly they tend to leave out seasonal expenses such as vacations and Christmas shopping.

I used to think I don't shop much, until Mint revealed that I spent an average of $400 a month - I just managed to do that in 1-2 un-budgeted for shopping trips.

However items like gas spending and dining out are better predicted on a month to month basis, or else you're just wildly guessing.

I think a person should budget monthly, but make sure to pad savings for those seasonal expenses you know will come. If I budget $400 a month for shopping and then don't shop, I'll just spend that money elsewhere. Instead I don't budget for sporadic expenses - I just make sure and save plenty so I have the money there when the expenses arise.

I've started doing a real budget 3 months ago. From the beginning budgeted for a year. Like "Meg" said, people forget about vacations and Christmas. They also forget about other holidays.

These house is the host for Thanksgiving party. There is also Valentines night out. Birthday parties, Mothers day, and Fathers day. By them self these are not a big deal until you put them together. For me it totals up to $1800.00 dollars a year.

Do not forget about anniversaries, car taxes, grade/high school tuition, animal shots, and real state tax if you do not have an escrow.

All these adds up fast, if your not ready.

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