Your spending isnt necessarily the same month after month, so your budget shouldnt be either.
How Did My Actual Spending Compare to My Projected Spending?
Did your actual spending match up with the amount of money you intended to spend in each budget category?
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Where did you overspend?
Where did you spend less than anticipated?
Probably not as good as youd like.
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2.
How Do I Want to Allocate Any Surplus Money From Last Month?
You have a few options.
you might roll that money into the upcoming months budget so youll have more available.
You could invest the money in anIRAor ataxable brokerage account.
You could give back by donating to a nonprofit organization.
Or you might want to use the money to treat yourself to something nice.
Its totally up to you.
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3.
What Was the Reason for Any Overspending?
Did you turn to retail therapy to counteract a stressful week?
Did an emergency arise that you couldnt have predicted?
Did you order takeout too much?
Did you forget to factor a major expense into your budget?
Is your budget so restrictive to begin with that your spending limits are just unrealistic?
Reflect on why you spent more than you planned and what you could do differently next month.
Do I Need to Adjust Spending Limits for the Month Ahead?
How Do I Feel About the Purchases I Made?
Are you satisfied with the things you bought?
Did your purchases bring you happiness?
Or do you feel as though you wasted your money or rushed into making a purchase?
Do you have regrets?
How Am I Tracking Toward My Goals?
Are you on the right track to meet your savings goals?
How are you coming along on your debt payoff plan?
Did your credit score go up any?
Where Can I Cut Back on Spending?
Dont just focus on your discretionary spending.
Look through your essential purchases and identify one way you’ve got the option to reduce costs.
Heres one: Call your insurance company to ask about available discounts or if theyd match a competitors quote.
Or try lowering your utility bills by being more conscious about your water and electricity usage.
How Can I Increase My Income?
you might increase your income in a number of ways.
At work, you could ask to take on more hours, work overtime ornegotiate a wage increase.
You could supplement your regular job with aside hustleor a stream ofpassive income.
you could also increase your cash flow byselling items around your house.
Looking for a better-paying job is another way to increase your income.
Just be careful not to give in tolifestyle inflation.
Focus on your personal money goals rather than upgrading your lifestyle to keep up with the Joneses.
Nicole Dow is a senior writer at The Penny Hoarder.
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