End of month left over
What do you do with your leftover money in each category each month?
I understand the concept of letting it sit there and age, therfore you eventually end up paying this months bills with last months money.
However, what about the idea of taking that left over money and funneling it into your "fun/vaca" category or your "debt" category?
Curious to hear everyone's thoughts on this. Thanks!
I have certain categories I “sweep” at the end of the month to other categories.
Utilities and Household Supplies get swept to my Household Upgrades
Auto Gas gets swept to Auto Maintenance
Groceries gets swept to Dining Out
Health and Beauty gets swept to another discretionary category of my choosing.
I don't touch leftover money in groceries, sundries, medical, dining out, and transportation as it will inevitably be spent in the near future. Those categories are also used when I'm on vacation, which lessens the stress of that total bill.
If the remaining amounts in other categories are substantial, I shift them to goals.
Totally up to your priorities. When you feel money in a less important category can be better used for something else, you SHOULD move it. That's simply Rule 3.
Lots of people sweep the dregs from discretionary categories into the current top priority category. (It's definitely my preference.) Debt would be a great choice, as every dollar contributed is effectively with more than a dollar because of the compounding.
Do note, though, leaving the dregs and budgeting less next month is pretty similar. This results in more money in TBB, which can then be put toward the high priority category in next months area.
Just be careful about leaving dregs and budgeting the nominal amount as well. This could lead to lifestyle creep. OTOH, it might work out perfectly if the contributions are at the average spending level. (I do this for utilities, for example.) A bit of a catch-22 since creep inflates the average. 😉