I make a real effort to stick to my budget pretty strictly every month, but I must say, I’ve been absolutely BY THE BOOKS these past few months! I’ve added in even more allocations to help me better direct my spending, and I’ve cut back on unnecessary expenses. By doing this, I was able to completely pay off my small outstanding credit card bill AND put extra money into savings! As of late, I’ve been finding about $100 left over at the end of each month, and I’ve been thinking about what that means and what I can do with it. What will benefit me the most? If you find yourself with unallocated money at the end of the month, consider some of these options for smart spending…
Pay off your debt. This is probably the most important thing you can do, especially if you have a balance on your credit card. The longer you have a balance, the more interest you’ll pay, so it’s best to just get rid of it. Have outstanding loans? Pay a little extra this month. When I’m able to, I always pay a little more on my student loans or my car payment. Even if it’s only a few extra dollars at a time, I know my balance will gradually get smaller. Every little bit counts!
Add to your savings. Don’t feel like you have to spend money just because it’s available! I’m totally guilty of this, and I no longer carry cash on me for this specific reason – if it’s there and I haven’t budgeted it for anything specific, I will BLOW it. If you’re really not going to use your unallocated cash this month, add it to your savings account for when you might need it for something more important later.
Create an overflow fund. I’d like to think that I’m pretty good at planning, so I almost always stick to my savings plans. Since I feel confident in what I’ve been setting aside, I’ve started adding to a separate overflow account. I use this for things that I may have forgotten to plan for, or for unexpected expenses that come up that don’t already fit into my other savings categories. I love having this separate account because I don’t have to feel guilty about borrowing from my emergency fund, and I don’t have to charge anything to a credit card.
Treat yourself. Now I’m not saying you should go out and waste all of your cash on crazy things, but if there’s something you’ve been meaning to do or purchase, it’s ok to splurge just a little. Maybe you’ve been extra stressed lately and you want to get a massage at the spa, or maybe you’ve been eager to replace the lamps in your living room. If you can afford it, indulge just a bit… just do it wisely!
Do you budget for every dollar in your account every month, or do you ever find money left over after your expenses have been taken care of? What do you do with it?
