We Got the Budget Done EARLY! | November 2021 Beers & Budgeting

TL;DR

November’s apparent budget shortfall mainly came from childcare transition costs and expenses that should have been assigned to gift and vacation sinking funds. Food spending reached 865 after hosting Thanksgiving and a party, while vacation-fund spending included trips to Kansas and Colorado. Once the two sinking-fund categories were removed from the monthly calculation, the budget was on target. Read on for the full reconciliation.

Transcript

hey we actually are doing this beginning of the month at the beginning of the month high five very nice i like stick around we're going to be going over november's budget in this episode of beers and budgeting hey what's up guys it's justine with debt free millennials the channel to help you crush your debt live payment free and we talk about our b... Read More

Key Insights

• 😋 Overspending in the November budget was mainly due to high food and childcare expenses.
• ❓ Withdrawals from sinking funds caused discrepancies in the budget analysis.
• 😋 Sinking funds are essential for covering unexpected expenses like gifts, food, and vacations.
• 👣 Tracking sinking fund withdrawals separately can provide a clearer picture of specific expenses.
• 😫 Setting up sinking funds can help in managing budget fluctuations and maintaining financial stability.
• 💄 Reviewing budget details helps in identifying areas of overspending and making necessary adjustments.
• 🙊 Planning ahead for expenses through sinking funds can prevent financial stress during peak spending times.

Questions & Answers

Q: Why did the November budget initially appear to be over budget?

The calculation included unusually high childcare costs and spending from the gift and vacation sinking funds. The hosts said the childcare transition was the biggest discrepancy, while the sinking-fund withdrawals distorted the monthly total.

Q: Was the November budget actually over budget?

The initial calculation showed a negative result, but it included gift and vacation expenses funded from sinking funds. After removing those two categories from the monthly calculation, the hosts concluded that they were right on budget.

Q: How much income and spending did the November budget include?

They forecasted ten thousand seven hundred and fifty dollars and actually brought in eleven thousand one hundred and forty dollars. Total expenses were ten thousand seven hundred and twenty five dollars and nineteen cents before the separate sinking-fund issue was reconciled.

Q: Why was food spending so high in November?

Food spending reached 865, which was 265 over the food budget. The household hosted Thanksgiving and a party, buying a ham, a turkey, wine, liquor, and other extra items.

Q: Why were childcare expenses unusually high?

The family transitioned to new childcare during November. Expenses from the old arrangement were paid at the beginning of the month, and normal costs for the new arrangement also started, creating a temporary increase.

Q: How much was spent on gifts?

The budget showed 400 bucks under shopping and 600 on gifts, including birthday and Christmas gifts. Because some Amazon purchases were mixed together, the hosts said they would need to separate Christmas gifts from personal shopping.

Q: Why did vacation spending distort the monthly budget?

They spent twelve hundred dollars from the vacation fund for a trip to Kansas and a plane ticket to Colorado. Because that money came from a sinking fund, they believed it should remain tracked in the vacation-fund row instead of inflating the monthly total.

Q: How did the hosts want to track sinking-fund spending?

They wanted withdrawals to stay within each sinking-fund row while still recording exactly how much was spent from every fund. They also considered displaying the expenses separately so they could compare the monthly budget both with and without those withdrawals.

Summary & Key Takeaways

• Budget review for November shows overspending on food and childcare expenses.

• Withdrawals from sinking funds caused budget discrepancies.

• Sinking funds help cover unexpected expenses like gifts, food, and vacations.