Saturday, May 18, 2013

Different Months with Different Needs

With total configurability of all Pagemonth elements, it's not difficult to customize your spreadsheet as you want it to be.  The procedure is usually the same for most changes:  change January first, then copy January's changes through the other months.  But that is just the beginning.

Next, go through the months individually, adjusting parts in each that need specific changes:  the month's name, the calendar adjustments to the right number of weeks, the right number of days, changed income for that month, changed expenses or amounts, etc

Often the autumn months are similar through December, then January brings many changes.  February is always different with its leap years and 28 day months.  March through May are often similar without major holidays other than Easter to buy for.  June, July and August are budget busters, thanks to vacations and back to school, and then we're back to the autumn months with their buildup to the year's end.

This part, the month by month adjustments, is perhaps the hardest to do.  Not only are expenses burgeoning at some points but jobs are changing, folks tend to move in the spring or early fall, paychecks may drop out altogether for certain seasons as in the construction industry or teaching, layoffs in business and manufacturing, extra hiring for holidays then perhaps layoffs again.  Many must scramble to find a way to make ends meet till their income sources return.

How to budget for such a fluctuating, roller-coaster-like pattern?  Our advice is always the same throughout:  Estimate income low, estimate expenses high, pay off high interest loans as soon as possible, and build in plenty of buffering funds to handle the unexpected.

I use my credit card provider's regular monthly payment amount to hedge against such need by always budgeting $1000 more than our charges tell us we'll need to pay it off to zero balance.  That way I won't have any interest to sap away at other bills.

Don't let anyone tell you that paying off your credit card completely will lower your credit rating, because you're cutting off interest they depend on.  It won't.  If anything it will reassure creditors that no matter what they throw at you, you will pay it.

Each month brings different needs, so although customizing your budget begins with transferring January's budget through the year, by no means should you repeat it like a cookie cutter 11 times and leave the other months unchanged.  Month to month individual adjustments, all you can foresee as you learn of their need, will make your projected budget much more accurate throughout the year.

No budget is cast in stone when made. But with frequent reasonable revisions your Pagemonth Budget will serve you well all year.

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