What to do with unspent but budgeted money

Willing2Learn

Hi ForestBluebells :hello:

Putting away something in to monthly savings pots for each of your annual bills and expenses, is a great method with which to start budgeting.

If you haven't already done so, then I suggest you complete your SOA, so that you can identify all applicable annual bills and expenses. Then you can have one savings pot for each monthly budget category.

Rich1976

We have separate savings accounts set up for each category and every month 1/12 goes into the designated account.

We used to just have one account but then found we lost track of how much we had saved for each purpose.

The issue you need to be aware of is there needs to be sufficient saved into each category by the time its needed . Car repairs for example will not wait until you have enough money saved otherwise you will need to borrow from the other categories and then have to work out how to replenish those as well as continuing to save for the category it was originally intended for.