Step 6: Manage Seasonal Expenses
Now that you have created a workable budget and have planned your pay cheques, the last step is to plan your savings money so that you are able to track and manage your seasonal expenses. The Seasonal Expense Worksheet on page 11 will help you get started.
Set up a binder with one page for each seasonal expense item listed on your Budget Worksheet. The first page is what is actually in your savings account (A). List the date and how much you deposit or withdraw each time. The subsequent pages are for the items you will need money for when the time comes, e.g. car repairs, vacations, gifts, clothing, etc.
TIP: Arrange your debit card so that you can not debit from your line of credit.
For example, you deposit $300 to your savings account twice a month and record this on the first page of your binder (A). Ten, based on your budget, you record the amount you need for your seasonal expenses on each of the next 4 pages (clothing (B), car repairs (C), gifts & festivities (D), travel & vacations (E)).
When an expense occurs and you spend money from your seasonal savings account, e.g. $40 on a gift for a friend, record on the first page (A) what you withdrew (e.g. $40). Ten on the “gift” page (D), subtract $40 from the amount listed there and note the reason.
TIP: Add unexpected money you receive to your seasonal expense savings account. It’ll add up to a nice surprise when you least expect it!
The important thing to remember is that the total of your seasonal expense pages (every page except page one) must total what you actually have in your savings account.
Planning how to spend your saved money, just as you do your pay cheques, will allow you to have the money you need when you need it. This will help you avoid the stress of debt and give you the freedom to make choices.
TIP: Make your savings account hard to access: move it to the “other” spot on your debit card.
* This entire document and it's related topics are available as a PDF download for printing and offline reading.
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