Planning a Budget for the Coming Year

The school season will be back in just a few weeks, and even though here in Alabama it still feels like Summer, the Fall season is fast approaching.  It may seem strange to think of home finances at this time of the year, but this season actually provides several benefits when it comes to personal financial planning.  I this blog post, I’d like to talk about planning a budget for the coming year.

Why Make a Budget Now?

The “Back-to-School” season is a great time for working on a household budget plan to help with getting your finances under control.  Back-to-School expenses usually only come up once per year, and they aren’t something that most people consider when planning.  While it is still fresh in your mind, go ahead and write down what you’ve had to spend for school supplies and clothes.  Take that number and divide by 12 to get a good monthly average of school and clothing costs.  These are expenses that usually stay hidden.  Most months of the year the average person may not spend anything on new clothes, but you need to account for that expense if you’re going to make a complete budget.

Now is also a good time to take account of any Summer spending that you’ve done.  If you’ve been on vacation, then you can take a look back at what you’ve spent and work those expenses into your budget planning.  That way, you’ll have an idea of how much you’ll need to set aside in order to plan for a vacation next year.  Furthermore, now is a great time to start planning your spending and saving for the 2018 Christmas season.

Many bankruptcy cases that I see result from unexpected expenses.  Often these are things like medical bills or car accidents that strain a person’s budget more than he or she can compensate.  Inevitably, this starts a snowball effect of missed payments that results in lawsuits or potential repossessions.  If you can make an effective household budget that accounts for expenses that may only come up once per year (like back-to-school, vacation, and Christmas spending) then you can budget savings to protect yourself from the unexpected.  So take 30 minutes or so this weekend just to go through your spending and start to put together a budget you can stick to.

 

Even if your financial situation has already started to snowball, there is still hope for a happy outcome.  At Bond & Botes we specialize in helping people file for relief in bankruptcy.  Our attorneys have years of experience counseling people through the bankruptcy process and back to financial stability.  Call us at one of our convenient offices in Alabama, Tennessee, or Mississippi to schedule a free initial consultation today!