Monday, 14 May 2018

Cheating The Budget (A Sorta Bad Habit)

So, as I have mentioned, I am focused on building up my savings, first one then the other. 

I will take a break in between building up one savings account and the other to pay off the ever increasing credit card balance that I am building up. 

You see, what I have been doing is “cheating my budget” so to speak. Let me explain.

I have a set budget for a number of things with the focus to put the maximum amount into savings. I have a set minimum that I have decreed must go into savings each payday.

This set amount is what my budget forecasts are based on. If I am able to put more into the savings account, then all is well and that is a bonus (Yay!)

If, for some reason, I am not able to put that base amount into savings, then I cut back on my budget to make that happen.

Sometimes, this means reducing budgetary amounts to less than what I actually need to spend. The first casualty is always the grocery budget.

This is where my “cheating the budget” comes in and what happens is what you already have guessed. I put some groceries on the credit card.

Again, I stress that this is my low interest credit card that I will pay off starting in August, and expect to have it paid off by early October at the very latest. 

This is a bit of stealing from Peter to pay Paul, but as this is going on, I am building up my Mid-Term Account (to my 2-Years of Living Expenses Target).

It may not make the best financial sense, but it is what I am doing (and yes, my savings can easily pay that credit card off).

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

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