Nextwave Finance

Don’t Waste “Budget Leftovers”!

November 29th, 2007 | by rachel |

Thanksgiving is over and the end of the budget month has come again.  The refrigerator holds remnants of last week’s feast while the bank contains what little remains of your last paycheck.  It’s a shame to throw the “leftovers” away but what choice is there?  What’s left is enough to keep but not enough to go very far.  Big or small, there are definitely ways to use “leftovers” without wasting them.  These questions will help you get started.

Exactly what are “budget leftovers”?

Just like the leftovers from a meal, budget leftovers are any funds allocated to a budget spending category at the BEGINNING of the month that remain unspent at the end of the month. 

 

The sum of its parts?

Budget leftovers from individual spending categories are likely to be small amounts.  Alone, they will rarely be enough to make any significant difference in the “grand scheme” of your finances.  Pooling those small amounts, however, can provide enough money to make progress on your financial goals.

 

How can I put my “leftovers” to use?

Consider a budget leftover to be extra money.  There are numerous ways to use it.  Before deciding how to use it, consider the details of your specific financial situation and the way(s) that you can best use extra money at the time you have it.

• create a “buffer” in your checking account

• withdraw the leftover amount in cash and have a “slush” fund at home

• pay off a debt

• put the leftover amount toward the financial goal that you are closest to achieving

• move the leftover amount to a high-yield savings account

 Can I increase the amount of leftovers?

Absolutely!  Just spend less each month than you have budgeted.  That is certainly easier said than done but, after the first couple of budgets, it will get easier. 

 

No matter what, don’t let the “budget leftovers” go to waste.  Sometimes, the leftovers are better than the original meal!