Budgeting a surplus

Here is my issue, which is kind of a good problem to have.

Until recently, I have been bringing in more than I spend, so I have a surplus in my checking account. But because my expenses are about to go up, (and because I'm trying to follow principle #1) I'm going to have to start being careful and I don't want to spend away all of my savings. So, what I'm trying to do is budget only with what I bring in every month, not necessarily with the surplus. So how can I segregate the surplus? Right now it is just carrying forward into future months.



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  • Create a category (maybe deferred income, or whatever makes sense to you) & budget it there. If some of your savings is for Space Tourism or All The Gadgets, budget some there first so you know not to touch it until Elon Musk is ready to launch you into orbit. When/if you do need it, move what you need into TBB when you budget each month & budget as normal. 

    Like 5
    • Superbone
    • YNAB convert since 2008
    • Superbone
    • 10 mths ago
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    You do exactly what your subject says, budget the surplus. Create a category or multiple categories for it and budget it. That’s exactly what categories do, segregate funds. Just because it’s budgeted doesn’t mean you plan to spend it. One of my categories is my Emergency Fund that contains 6 months of living expenses. That category balance hasn’t budged for years now.

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  • Why do you have a surplus. What is that money for? Create categories that represent those jobs and budget the money in appropriate amounts to them. Most people fail to consider long term large expenses and/or emergency funds.

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      • dakinemaui
      • dakinemaui
      • 10 mths ago
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      • Reported - view

      nolesrule Many also fail to (initially) consider various short-term categories. The end result is they don't really have the long term "savings" they thought they had.

      Don't be surprised if you have to reallocate once you start laying out the demands on your money.

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