Scheduling Your Budget (Part II)

Here will we continue to learn how to follow our written budget by continuing to schedule our budget. So far weʻve scheduled 1.) the bills that have due dates and 2.) our expected wages. Now it is time to schedule variable expenses, fixed annual expenses, and other income.

3. Calculating Weekly/Bi-weekly Variable Expenses
For each variable account, think about when you need to spend the amounts in the budget and divide it accordingly.

Example A: 

This family does bi-weekly grocery shopping. Divide the total Grocery Budget amount by 2.

$400 Monthly Grocery Budget / 2 Shopping Trips per month = $200 Every 2 Weeks

Example B:

This family puts gas once a week. Divide the total Gas Budget Amount by the number of weeks in a month to give you a weekly gas budget amount.

$400 Monthly Gas Budget / 4 weeks per month = $100 Per Week

4. Scheduling Variable Expenses

Now we need to enter the amounts calculated in Step 3 into your schedule, according to the specific week you decide you need to spend that money. Be sure to keep in mind the times of the month where you have more bills due and try to be more conservative with your variable expenses during these times. 

Example A1:
To avoid the long lines at the grocery store around the 5th of the month, this family decides to go grocery shopping the second and last week of the month, budgeting themselves $200 each trip.

Example B1:
Fridays are the best days for this family to go to the Warehouse Store Gas Station (i.e. Costco/Samʻs) to fill up the tank. This family will schedule in their gas budget account every Friday for $100.00 each trip.

Complete this for all your variable budget accounts. 

Here is an example of what your budget may look like:

Notice the three entries on the bottom of the schedule. Because you do not know when you will want to spend money on Entertainment (i.e. Movies, Night at the Bar) and Other Expenses you cannot specify a date for these amounts; by placing them on your budget you are aware that you have allotted a certain amount for these things. 

The last entry, Fixed Annual Expenses is a total of all the expenses that you have to pay annually. Putting this amount into a savings or separate account will help to keep that amount secure until the due date for those expenses comes around. 

5. Scheduling any other sources of income

The last step before reconciling your budget schedule is to enter any amounts of other income. For the family in the example, this includes income from Pampered Chef, Maliaʻs portion of her cell bill that is on the family plan, and the money from Lani for carpooling during the week to work. 

You have now scheduled your budget. Next we will reconcile your budget schedule to make sure you have enough money WHEN you need it. 

Next Blog Topic: Reconciling Your Budget Schedule