DIY budget billing for almost anything!

I pay $400 every Monday for daycare - that means my costs range from $1600-$2000 depending on how many Mondays are in a given month. Those 5 week months were killing me until I realized that there are 4.33 weeks per month on average.

Now I save 400*4.33 using a monthly goal, let the excess roll over  and there are no more months that leave me scrambling to come up with extra $$!!

I don't do this with groceries - I spend every dollar I assign to food categories so wouldn’t have the discipline - but for something as boring as daycare costs  it’s been a huge relief to  keep things on an even keel expense-wise!

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  • I do this for groceries as well. 50 a week, 52 or 53 weeks a year. 12 months. 50 * 53 / 12 = monthly grocery amount.

    Reply Like 1
  • This is brilliant! Gonna just tuck that into my pocket to use later... 😉

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  • Very smart! One of things I do with groceries is look at trends. I see how much I spent over the last year and divide by 12. Some months we are over, some under, but it all evens out. Problem is, the cost of groceries has increased and we are not cutting back like we use to, now instead of averaging out, it's climbing up. 

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  • My wife got tired of trying to think about 4 and 5 week months for groceries. So we have a groceries now under monthly expenses and a groceries later in our true expenses. We fund the groceries later at the beginning of the month with spending*53/12. She shops on Thur. So Wed. night one of us moves the money for the week from groceries later to groceries now. Most years this leaves a surplus because of the 52 weeks instead of 53 but we just move that to retirement.

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    • eloquentz
    • Numbers Wizard (Accountant), Acoustic Artist (Musician) and Jill of all Trades (Wife & Mother)
    • eloquentz
    • 1 yr ago
    • Reported - view

    I am working on this for my biweekly van loan payment and my weekly mortgage payment.  We're still clawing our way out of overdraft, so I'm not there yet, but working on it.

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  • Hi-

    I followed this advice for my mortgage. Since for ex, I pay $1000 biweekly, I budgeted $2150 for the month. The 1st payment went out today but the remaining $1150 is killing my budget, it's saying I only have $600 left for 9 more days until pay day.

    Since YNAB is designed to pay bills as you get paid, it seems like this budgeted $$ for my next mortgage payment (after I get paid next) interferes w/ what I actually have until pay day.

    Does this make any sense? Why is this confusing me?  Thanks!  -Pete

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      • nolesrule
      • YNAB4 Evangelist
      • nolesrule
      • 1 yr ago
      • Reported - view

      Khaki Cornet It sounds like you are still on a paycheck to paycheck cycle. Remember that the first question you need to ask is "what does the money need to do until the next time you get paid?" If it doesn't all need to sit there waiting for your mortgage payment, then perhaps that money (or at least some of it) is better used elsewhere, and then when you next get paid you can top it off then.

      If you pay the mortgage biweekly at $1000 per payment, that's $26,000 per year. So take that $26,000 and divide by the number of paychecks you have each year and budget that amount to the category each paycheck. After that, the rest can go to your other categories.

      Once you get ahead so that you are able to budget your entire month in one go, then you can budget the category in full with a monthly target of 26/12 payments. But not until you've reached that point.

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  • Hi @nolesrule -  I watched the first couple of classroom sessions and it straightened me out. So the way I understand it now is that you can create a budget template by creating goals for every category. Then as you say, when I get paid, I only budget what I need right now so in the scenario, only the $1000. Anyway, light bulb goes on >>

    Hey everyone, the online classroom sessions are invaluable, don't try to fig it out on your own... :)

    Reply Like 3
  • Great question, and even better replies. 

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