Times To Revise Your Budget

One of the most important things you can do to take control of your finances is to create and stick to a budget. But there are some times in life when you have to revisit and make changes to that budget.

If you have been trying to get your finances in line you’ve probably heard over and over again how important it is to make a budget. Budgeting not only forces you to spend within your means but it lets you see where your money is going on a daily, weekly and monthly basis. Understanding how you spend is so important if you want to make changes to your financial life.

But of course there are some life events that will come along that will make you revisit your budget. You may feel uneasy amending or even scrapping your budget all together but you shouldn’t! It shouldn’t be carved in stone and should adjust as your life adjusts.

Here are a few of the scenarios that may cause you to revisit your budget and a few ways you should tackle creating that new budget...

Getting A New Job

A new salary will definitely mean a new budget because your income has changed. Once you know what your monthly take home pay will be you should plug in that number into your existing budget. 

Will this new job cause any of your bills to increase or decrease? Will you be driving more? Maybe you will be taking public transportation? Make adjustments where they are needed and see where you end up. 

Your salary could be much greater or very similar to your previous job. After a few months you will have settled into your new salary and will be able to make adjustments to your budget easily if there is more money coming in.

Having A Baby

There is nothing like a baby to cause a big change in your budget! Babies are expensive and will definitely require a reassessment of any budget. You will have to sit down and consider a host of new essential costs like baby supplies, child care and doctors appointments. Even if you have a lot of wiggle room in your budget you will want to spend some time planning out your budget to make sure you can stay on track after you bring your new family member home.

Moving House

Moving to a new house or apartment is always an occasion for a budget revision because almost all of your major expenses will have changed. 

Budgets are built, foundationally, on your unchanging monthly expenses like rent or your mortgage. When those change the whole budget needs to change accordingly. When you move your utilities will change, your rent or mortgage will change, your gas mileage to work will probably change. 

You will likely need to start fresh, which honestly, isn’t the worst thing!

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