One of the best choices we made when we were first married was sitting down with an older couple who helped us set up a budget. We have done our best to follow this sample since then. It has been a huge help when unexpected expenses (and lay-offs!) have popped up.
The main idea is that we ‘pay ourselves’ each month by setting aside money for upcoming expenses. The amount of money that we set aside each month is the total annual amount needed, divided by 12.
For example, let’s say that we know that we need to pay $600 annually for car insurance from somewhere similar to youi.com.au (here). If we divide $600 by 12 months, that equals $50 a month that we need to set aside so that it is available when car insurance comes due. By setting it aside monthly, we know that the money will be there when it is needed. (For an idea of how much should be spent annually in each category, you can download Crown.org’s free percentage guides and other helpful budgeting tools here.)
If you own a car that is on the roads, then car insurance is crucial. Not only is car insurance a legal requirement, but it also provides financial protection if your vehicle was to become damaged, which will help you cover the costs of replacement parts from places like dallas body shop, or mechanical work from your local garage.
Car insurance can also provide cover for injuries to other drivers, passengers or pedestrians, and their property. Accidents can happen anywhere, so it is always reassuring to know that you are covered financially if you are involved in one. It is always best to be safe than sorry. It is understandable that some people may not want to pay car insurance, due to the fact that it can be quite expensive. But with it being a legal requirement and there are options such as taking an online defensive driving ny course, for example, and even comparing insurance costs, there should be no excuses for drivers to not have insurance and even find lower rates.
Car insurance can seem expensive, but there are ways to make sure that you get the best deal for your budget, such as using comparison websites like MyCarInsuranceQuote.com. Take a look at their website to find a range of Car Insurance Quotes and see if you could make a saving.
The method that we use to set money aside is a mixture of the envelope system and our own system. We’ve discovered that envelopes work well for groceries and our own personal allowances. The rest of our budgeting is done through online banking.
How about you? What’s your method of budgeting? What has and has not worked for you?