Thursday 7 April 2016

Budget Shortfall

Okay, even as I did it, I knew that it was a bad financial move, yet it was something that I had to do, for me. I am referring to the decision to go to Banff for the weekend, of course.

I am now left with a hole in my upcoming budget which means that I am facing some tough decisions this payday. The hole is not that large, but it does leave me facing a possible deficit budget this time around which simply underfunding my wallets won’t cover.

Sure, I have blogged on this subject before, but I will do so again, because I am facing it again. I have a few resources at my disposal now, so I can do a few different things to deal with this problem.

1) Run a Deficit: This means just fund everything fully and dip into my personal overdraft and top it up next payday. I don’t like doing this because I only want to dip into that overdraft in emergencies.

2) Carry a Credit Card Balance: This means to not pay the credit card off, and just pay the minimum on it, if anything at all. This option is less desirable than the previous one, because of what I went through just to pay my credit cards off. 

3) Dip into Savings: This means to just borrow a bit of cash from my mid-term savings or my Long Term savings. Again, the hole is not that large and things are not that bad.

4) Cut back on Savings Contributions: This means that I simply put less into my savings than I had planned. Thankfully I am on the savings side of the debt paydown hill, and so I do have this option. 

I had planned on topping up my Contingency fund up to my target of at least $1K, but that won’t happen this time. 

I have decided that I will run a balanced budget, unless in times of economic emergency (as in job loss, etc). I have also decided that my credit cards will continue to be paid off each payday. 

The last thing that I have sworn to myself is that my long term savings contributions are not to be missed or messed with. 

This pattern is important to me, as I need to see the immediate impact of my financial decisions. It is important to train myself that no matter what I must live within my paycheque. I will not carry credit card debt, unless I have to. 

I will do whatever I have to (that is: legal, ethical and moral) to leave more in my bank account at the end of the pay period than was in it at the start. 

I also plan to do more camping, say one trip a month, as for me, going to a campground is a luxury. This is important, for me, but I need to keep my savings plan going as this is for my future, whatever and wherever the future takes me. 

As always: Keep your head up, your attitude positive and keep moving forward!

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