Christmas spending & Goals
Hi all, I was wondering how people handle the following:
I have a category for my Christmas savings with a savings goal dated November (which is generally when I start Christmas Shopping).
However, I spotted last month a toy that we were planning to buy my Daughter was discounted to a very good price so I snapped it up - there was plenty in the Christmas savings pot to cover the expense, however this has obviously thrown my goal out of line.
To compensate, I've simply dropped the savings goal amount by what I spent (after all, I don't need to save for that toy anymore and I'll effectively still have the same amount of funds available to spend in November).
In hindsight, I could have simply set up a monthly contribution goal back in January of my target amount /10 months which would not have put the goal into 'underfunded', but I do like the fact that with a target by date goal I can gradually see that pot building up and I know I can't (or shouldn't) WAM from it.
How would you have handled the scenario?
Turquoise Major said:
[with a target by date goal...] I know I can't (or shouldn't) WAM from it.
One look at the category name should tell you that you shouldn't WAM from it, unless it's for something more important.
THANKS! This was my exact problem. I set my savings goal for October 1st so that I know I have it all and can start spending. I updated it for next year and it messed everything up. I changed it to a "Needed for Spending" goal and now it is all good to go. Thanks again for asking and the great answers.