Hit the Refresh Button on your Budget!

I don’t know about you, but sometimes certain budget categories we have get overweight. Not really something to complain about I suppose, but having all that money tied up in this or that fund can be useless.

Let me give you an example. Our medical category is currently near $1,000. We saved up that money over time, but the amount seems a little high for our current health needs. Mainly, we just pull out copays from this category because we have excellent insurance. We are also beginning to build up our emergency fund, so major health emergencies would be covered.

Every few months we reevaluate our categories. Essentially, we redesign our budget based on new experiences and what’s coming up. It’s important to revise your financial plans every so often, and hitting the “refresh button” on your budget will consolidate funds that were too spread out or over-bloated.

Life has many changes. So will your budget! Set realistic goals and find areas where you can cut back your expenditures! You’ll need to adapt these goals as you proceed through life, so don’t get too accustomed to your current budget!

What’s your budgeting process like? How often do you hit that refresh button? Share your comments!