A few days ago I sat with my trusty notebook and pen and revisited our budget. Since we are very conscious of what we spend and where, I have it mostly memorized but it does help to pull up our budget spreadsheet and make sure I list all areas. The last month we've been more spendy and I know the holidays coming up will be an area we need a plan for if we want to keep on track with financial goals.
Walmart is already promoting toy sales and their holiday decor has been out for a few weeks. Last year we did homemade baking and handmade gifts for family. It went over really well and we plan to do the same this year. I am certainly a consumer that loves packaging and holiday promotions so I really have to check myself and stay focused on what really matters during the holidays.
Since I have been more spendy and because I know there are several areas we plan to invest in next year for our family I decided to check in with our current budget and see if there are any areas we want to increase or decrease or add to or eliminate. For us, we have decided to increase our current life insurance.
Otherwise, our normal budget will look very similar next year. When we first started breaking down our budget we shopped around for cheaper phone plans, insurance, etc. I made a post about that HERE.
The next list I made was for expenses that we will have next year that aren't normal to our budget. For example we are considering a gym plan for Josh closer to his work so he can workout on his lunch break. We'd like to enroll Leighton in soccer or dance. We are considering a membership to a fun child's play place to give us another option for rainy days. We are also considering purchasing a Pureflix subscription for the year for entertainment. There were several more items listed and I rounded up the amount that the list would cost for us to see what it will look like for 2022.
The last list I made was a budget for holidays/events. I started with Valentine's Day and listed out all holidays/birthdays/ events we take part in for the year. I then put expected cost next to each. We plan to have a party for Leighton's 4th birthday next year (we had one for her 1st, otherwise it's just been us at home with some decor and doing things she loves that day.) We've enjoyed those but also want to mix in some parties every few years. I also like to know what I can spend for events and not worry I'm over spending. Some holidays and events I will spend less than I'm expecting and some more. It should all balance out, but the idea of writing it all out and planning eliminates unexpected costs and no guilt for buying items without a plan.
I like to list these things out separately because they aren't typical expenses and aren't from our regular budget. Our regular budget is in line with our debt payoff goals. These lists are separate and aren't set in stone. It gives an idea of what we could see coming and also leads to less frivolous spending (for me) because I know what will fill our time and cups are a better place to spend our money.
If you really want to keep these expenses separate and not pull from your regular income/budget you could spend all monetary gifts for the year on them, use tax money (if you receive a refund), sell unused items for these experiences/events, start a side business and use funds for them. I tend to have a go-getter mentality about budgeting and have been bouncing ideas around to have income for these things, separate from our usual income.
It's peace of mind to plan for and see where your money is going. I think planning for the year as a whole is so helpful and keeps your priorities in front of you when you feel tempted to buy more. I found this method very helpful!
With heart from our home,
Jordan
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