I am new to this (2nd month) and don't really know how to handle months rolling over and budgets going into the next month.
I get paid on the 20th each month, I usually budget £500 for groceries until the next pay. Would I enter £500 for February, or should I split this budget between Feb & March?
Hey Alice Blue Lobster !
There is no right or wrong answer here. If you prefer budgeting in the current month and letting it roll over, you can. If you'd rather move forward and budget to next month, that's fine, too.
Like Jenmas mentioned, find your preference and go with it. I do suggest a consistency somewhere - if you decide to budget for the current month, then do that each month. If you decide to split it, then do that each month. :)
I'd suggest budgeting it in Feb and letting it roll over to March. Splitting will most likely create additional budgeting work:
1. You need to figure out the split and enter two numbers
2. If you go shopping on the 28th Feb and that overspends what you set aside for February (even though you have money already budgeted in March) the overspend either adds to credit card debt (if you pay by CC) or deducts from March's To Be Budgeted. Either way, you then have to perform some budget magic to take the money from what you already set aside for March to get it back into February!
Budgeting the full £500 in Feb will automatically roll anything unused into March and when 20th March rolls around you can budget a new £500 to the category (or top it back up to £500).
All that said, the best option would be to save enough money such that the salary you receive on 20th of each month is budgeted the following month. In other words, you have enough left in your categories at the end of March not to need March's salary to get you through to the end but you can budget it all in April. I know this is tough but if you can achieve it you'll be living less "pay cheque to pay cheque".