When was the last time you checked in on your budget?
If it’s been a minute since you’ve thought about your spending plan or you’re not feeling in control of your money at the moment, it might be time to make some adjustments.
Here are five reasons to rethink your budget courtesy of Qapital, an award-winning financial service app.
- You have to spend more on non-negotiables because of inflation. Are some of your bills – like rent, groceries, or fuel – more expensive than they used to be? It’s no secret that inflation has been tough on everyone’s wallet. Inflation reached 8.3% in April 2022, which means a basket of goods that cost $100 in April 2021 costs an average of $108.30 in April 2022. So, a budget that was a perfect fit a few months ago may not be working today.
- You tend to run out of cash between paychecks. Do you find yourself constantly transferring money from your savings account to your checking account, spending more than you earn, or losing track of the rest of your paycheck after bills get paid? It could mean that your current budget isn’t working.
- You had to cover unexpected expenses. Emergencies or unexpected income loss can turn any good budget upside down. You might have needed to use cash from your emergency fund or rely on credit cards more than usual to get by. If you’re looking to replenish those funds or pay down that debt, working those goals into your regular budget can make catching up much less stressful.
- You have new priorities or routines. Ready to save to buy a house, add to your family, or bump up contributions to your retirement fund? Or maybe your daily routine has shifted, and your budget doesn’t reflect that yet. For example, you could be back to working in an office and eating more lunches out. When you create a plan with these changes in mind, it can help you enjoy spending on things that matter most to you and have a strategy for those long-term goals.
- You got a windfall and want to use it wisely. Did you recently get a raise, a bonus, a tax refund, or a new job? It’s a great time to evaluate your budget to make sure you’re still hitting your goals and getting ahead of lifestyle creep. (Lifestyle creep, when a higher income gradually leads to increased discretionary spending, can eat away at your newfound gains.)