Paying now for service next month – When to budget?
If I’m spending money THIS MONTH for a service occurring NEXT MONTH, should I record the expense in THIS MONTH’S or NEXT MONTH’S budget? Thanks for your thoughts on this question.
Your budget needs to reflect reality or you can't trust it. Budget for this month's spending, this month.
It helps to let go of the idea that certain expenses are "for" a particular time period. I'm buying Christmas gifts all year, but I don't wait and and record the spending from August in December.
In YNAB, you’ll budget for bills in the month you pay them–rather than when they’re due.
And also, in the preceding months if it's a less frequent but not inexpensive bill. Rule 2: Embrace Your True Expenses.