Monthly changes of your budgeted amounts are to be expected. Changes in spending and income result from the realities of life – both expected and unexpected. For this reason, continuous adjustments to your monthly budget are just a part of the process.
Income Increase. Taking on a new or additional job, receiving a monetary gift, or gaining income through other sources are all ways to increase your income. With this new income, you may want to pay down debt or add money to your emergency or savings accounts.
Income Decrease. Losing a scholarship, being let go from a job, or having to spend money on unexpected car expenses will force you to tighten your spending. As a result, you may need to identify non-essential spending areas to cut back. Figure out how much you will need to decrease your spending and decide which categories can be reduced.
Be flexible and reasonable each month when reassessing your budget or spending plan. For more information on budget strategies, visit the Financial Literacy Center.