How To Find Money In The Budget For The Things You Want To Buy
We have all done it at one time or another. We want something really bad, and decide we have to have it now! Unfortunately, there is this little thing called a budget which we are hopefully following, right? Well, depending on your budget, it may not fully allow for spending on random wants. Rather it is designed to allow you to save for them. So, the dilemma is how to find money in the budget for the thing you want most. Here is how to do it!
1) Do a check
Go through your monthly budget to see where you are spending your money. Ensure that all of the values for which you are stating you are setting aside funds for is accurate. This will likely require you to go through bank statements or records for the last month or couple of months. The values do not have to be exact for each category, just be sure they are as close as possible. Update the figures as is needed up and down.
2) Assess the cost of the item(s)
You obviously have something really special in mind right? If you are going to this much trouble to ensure you have enough money to scrape up to afford it, it must be amazing! So, check to see how much the exact cost is with taxes, accessories, insurance, etc. Be sure to also use apps such as Honey or RetailMeNot.com to get the best deal and find coupons. Now that you know what the least amount you can pay is, let’s get back to the budget.
3) Know the timeline
Think through the purchase. If you have done your research, you can see what the lowest price is that the product has been recently. You are obviously not over-paying for the item now just because you REALLY want it, right? You have also thought about the needs versus wants mentality and have come to the conclusion that you need to have it right now, right? Again, these are obvious yes’s, otherwise this whole walk-through would be pointless as you know it would be smarter to wait and let your budget naturally save for the thing you want.
4) The found money!
After looking through all of the budget, bank records, prices, and mental checks you have found the extra money, sort of. The truth is, you can purchase the item now if you move some funds from different accounts as to not fully deplete them, but definitely lower them from the set values your budget states it should be. Great job, right? After all, you are going to make everything right after your next paycheck anyways. Besides, the likelihood of needing those accounts to actually be at those set dollar amounts before you can make it right is highly unlikely! Who needs $1,000 in your emergency fund, when you haven’t needed it in 6 months, you can make it on $700.
5) Don’t do it!
Yes, you can always figure out a way to convince yourself there is money there for something you want. Your brain will get hijacked for the item in question, and you will not think clearly until it is too late. We run the risk of destroying and solid financial foundation when we throw everything we have worked for to the wind because there is something shiny we want. You obviously went through the motions to establish your different budget funds for a reason. When you manipulate the accounts against what you planned, you are literally working against yourself when you were thinking clearly. It is similar to being “drunk” on wants and working against your sober self. Be smart and don’t “drink” and spend.