June 14, 2011
Budget for the year. Not by month.
We track our income and expenses on a monthly cycle, but that doesn’t mean our budgets should be created on the same schedule. Monthly budgets can underestimate monthly expenses, while annual budgets overestimate annual expenses making it more accurate. Creating a monthly budget will be challenging, but it will also be more rewarding when you keep a budget.
For more information on the benefits of creating an annual budget vs. a monthly budget, read Budget For The Year, Not The Month.