Best practice when overspent in a category?
Hi all - curious to know if there is a certain way this needs to be done.
Lets say I overspend by $5 in a category. Should I increase the total budgeted amount (I.e. change budgeted amount from 25 to 30) OR do I have to move money from another category to cover the over-expenditure? It is also important to note that the money that would be added to the budgeted amount is leftover money I have (everything has been fully funded for the month and I have a little leftover).
Your To Be Budgeted amount should be zero after you have finished budgeting — every dollar should be in a category, whether or not that category is for bills, regular spending, or savings. If you funded all your categories for July, and still have money in TBB, then move that money to a saving category.
So with that said, the only place then to cover overspending from is another category.