Comments on: Is sticking to your budget hurting your savings account?

By: Andy @ Harp Refinance

Andy @ Harp Refinance — Fri, 23 Sep 2011 23:50:06 +0000

In our family, extra or found money during the month is ear marked at the beginning of the month. We will alot some for a night out but usually there is a how project or item that we are saving for that it goes toward. Neither of these I think it is important to note are long term goals. That is part of why it works for us in my opinion.

By: Tara

Tara — Mon, 19 Sep 2011 11:21:06 +0000

Hmm, I’m not sure I agree. If you find yourself with extra money every month, doesn’t that mean you should rebudget? Then you can reallocate to savings.

If it’s not a regular, significant surplus, then I don’t think beating yourself up about not saving it is the way to go. Either your budget is set up so that you’re saving enough to work towards your savings goals, or it’s not. If it is, then a few extra dollars here and there shouldn’t cause any worry.

By: Grady Pruitt

Grady Pruitt — Sun, 18 Sep 2011 19:45:37 +0000

I admit that I have not the best when it comes to setting and following a budget. In fact, I quite often forget to even do this. I like your idea, though, of taking the “extra” money and setting it aside for the next month’s budget. It sounds like a good way to not spend that extra money that we might receive right away.

Thanks for sharing!

By: Revanche

Revanche — Sat, 05 Sep 2009 18:46:36 +0000

The best way to deal with "extra" money is for me to relabel it as "more savings." Maybe it's the length of time that I struggled to pay back family debts, but it's been firmly ingrained in my financial behavior to consider any "windfall" as money with a purpose: a) to accelerate debt repayment, b) to refill a recently used pot of money (insurance, car maintenance, expenses) or c) to add to savings which was mine to KEEP. Period. Spending always comes out of the expenses account , and it helps that I track using credit cards, so all incoming cash flow is immediately routed to a pot without stopping to consider what I could buy with it. I've separated the buying process from the earning money process, in a way. .-= Revanche´s last blog ..Money money Miami! =-.

By: The Non-Student

The Non-Student — Thu, 03 Sep 2009 17:11:25 +0000

I throw it into my IRA, which I'm struggling to contribute the annual maximum to. Knowing that my money will be worth a lot more in the future helps me stay focused. "Just" 10 bucks now could mean huge returns in the future. .-= The Non-Student´s last blog ..Real Furniture: One of the (few) Pleasures of Growing Up and Having a Job =-.