Yahoo Finance What Is a Budget Calendar -- and Do I Need One?
Most of us rely on calendars to keep track of everything in our lives, from after-school activities for kids to doctors' visits and vacations. Yet, when it comes to our finances, we rarely think about keeping track of common money tasks, like paying monthly bills or setting aside money for retirement or an emergency fund. While we understand the importance of creating and maintaining a budget, it's typically not our first priority -- but it should be for long-term financial health.
"Budgeting allows you to allocate enough money to pay your bills, so you aren't struggling paycheck to paycheck," says Leslie Tayne, debt resolution attorney and managing director of Tayne Law Group P.C. in New York City. "No one wants to live paycheck to paycheck as it can be frustrating and emotionally draining, so simply sticking to a budget can help relieve this problem."
[Read: Best Budget Apps.]
Read on to learn more about how a budget calendar can help you manage your cash flow, bookmark important payment due dates and achieve your financial goals.
What Is a Budget Calendar?
A budget calendar is a financial tool designed to help you remember all of the important dates in your life, from the days when you can expect paychecks to arrive to the days that bills are due. The key benefits of creating a monthly budget calendar, planner or spreadsheet are:
-- Improved cash flow. By tracking your fixed expenses and bills, you can develop a better sense of your cash flow. By looking at past account statements and expenses and taking stock of monthly bills, you can easily pinpoint when significant expenses are due and set reminders to avoid late fees.
-- Fewer missed bills. With a well-laid-out tracking system, you'll be less likely to forget important bill due dates. As a result, you can avoid hefty late fees, and even help boost your credit score, if you're no longer missing key payment due dates.
-- Added savings. If you highlight key dates on a monthly calendar and set reminders, you're more likely to put cash aside for your retirement savings and gradually fund your kid's college education. Another option to ensure you're saving enough each month is setting up your bank account to automatically put money away toward designated savings accounts.
How to Make a Budget Calendar
You can create a budget calendar in a variety of ways. You can construct a personal budget calendar on paper or digitally. There are also a variety of free apps and templates online that allow you to easily monitor your spending and map out your budget.
You could also invest in CalendarBudget.com for $3.99 a month, an online budgeting application that enables you to track how much you're spending day to day -- not just with fixed bills, like a mortgage or rent payment, or utility bills, but also for lunch and dog grooming services. With the tool's visual-friendly interface, you can easily see what expenses are coming up, and view color-coded categories to assess how you're spending your money.
[See: 10 Big Ways to Boost Your Budget -- Without Skimping on Your Daily Latte.]
There are a variety of other budget calendar software programs to consider, including Money Calendar, a desktop-based app from Sketchman Studio that features a calendar with auto-generated charts to help you track your spending from month to month, available for $29.99. Another option is Moneydance, an app for Mac users that helps you set up a budget, alert you when bill payments are due and keep track of key financial dates with a calendar, available for $49.99.
Regardless of how you create a budget calendar, some of the incoming and outgoing expenses to track include:
Revenue. As you build out your calendar, make sure to include which days you receive paychecks. If you're self-employed, and you're not sure which day your future checks will arrive, a budget calendar can come in handy. If your income is sporadic, make sure to monitor the rest of your portfolio carefully to understand precisely when bills are due and get a sense of your overall financial well-being. Over time, you can always compare months from one year to the next, so you can get a better idea of when you spend the most and the least.
Bills. Note any day a bill is due on the calendar. If you're constantly tracking your money, you'll be more inclined to halt impulse purchases and unnecessary spending days before a bill is due. By understanding when bills are due, you can avoid common financial mistakes, such as neglecting to pay bills on time.
Savings. If you have days that you're automatically withdrawing money from your bank account to go into savings, such as retirement, a college fund or an emergency fund, make sure to note those days on your budget calendar. If you don't put money away regularly, it's also a smart idea to earmark certain days to save money. Even better, if you have a tool like CalendarBudget, you can utilize their alerts, which can remind you to save (or pay bills) regularly. There are also bookmarks that allow you to view any date on the calendar, and scrutinize your finances from specific time periods. What's more, you can import transactions from your bank to CalendarBudget.
[See: 9 Secrets to Save Money on a Shoestring Budget.]
Do I Need a Budget Calendar?
If you don't have a good grip on your budget, keeping tabs on your spending is a smart idea. "I have seen clients from all walks of life and have helped many low-income individuals who have had financial goals that were just not as grand as those living comfortably," Tayne says.
But it's crucial to have a budget and maintain it if you want to live comfortably, Tayne says. That means thinking ahead. "Savings and emergency funds are not prevalent among low-income individuals due to lack of cash flow," she says. "Living on a low income often means focusing on the short term, which is why I believe there is no focus on long-term financial goals. Always living in the short term will keep you running in place and unprepared."
With a budget calendar, you can better prepare yourself financially for what's ahead -- and start taking steps to achieve your long-term savings goals.
More From US News & World Report
