January Budget Categories

A new month, new year, and new a chance to create a new budget that will allow you to reach your financial goals by the end of the year. As you’re setting new goals for the new year, and creating a budget to fit those goals, don’t forget about some of these categories as you continue on your journey to financial independence.

Christmas Savings

I know, I know… This is a post about January budget categories, and Christmas isn’t until December. BUT, the time to get started on saving for Christmas is now. Every year, Hubs and I look back through what we spent on everyone we buy gifts for, as well as donations, class and company gift exchanges and parties. I also make sure to add in a little buffer in case any extra spending comes up, and come up with a total amount that we should have saved by the time Christmas comes. This gives us an idea on how much to save each week, so we can meet our goal by the end of the year.

Sinking Accounts

What are some things you’re saving up for over the course of the year? By starting to save for them earlier, you’re helping your budget stretch even further. In June, our septic tank is scheduled to be pumped again, and in June we are also taking a family camping vacation. By saving for both of these ahead of time, I won’t be surprised when the bill comes, or have to stretch our monthly budgets as we get closer.

Need some more ideas for savings categories? Check out my post about our 52 week savings, and get the free printable while you’re there!

Taxes

Tax time is quickly approaching for us in the US. Whether you wind up owing a large chunk of money at tax time, or you just want to hire an accountant to do your taxes for you, make sure to start setting aside some money now. If you’re unsure how much you’ll need, look back at how much you spent in the past, and give yourself a slight buffer for any increases in cost.

Family Night

Winter time where we live is cold, and in my opinion, miserable. When the kids get on the bus, it’s dark out, and when they get home, it’s dusk. Sending them out to play isn’t high on my list of priorities when it’s frigid and pitch black. But by scheduling a family night or two throughout the month, we’re able to keep cabin fever at bay and not overspend on our budget for the month.

Higher Bills

At our previous two houses, we had natural gas as our main source of heat. Our bill was always higher in the winter, by a few hundred dollars, than it was in the summer when the water heater and the stove were the only uses of natural gas. Even after we were on a budgeting program, the bill would reevaluate in the winter based on our actual usage.

At our current house our main source of heat is our wood stove, but our electric bill does rise a bit with our circulator running the hot water through our baseboards.

Clearance Items

This time of year is when I like to start stocking up on clearance winter clothes and coats. While they’re not going to be at the cheapest price I’ll find {March is usually when that happens}, I like to start scouting it out. In the past I found jeans for Bookworm and leggings for Lady Bug for under $2 each, which is cheaper than thrift store prices in my area.