Starting A Month-Of-May Fund

We keep many of our budget categories level throughout the year.  All of our utilities receive a contribution every month, regardless of the bill.  This keeps many of the ups and downs of our budget in check.  So, for example, we contribute $85 per month toward the water bill.  In winter months, we use half that, but in summer months (when the sprinklers are on), it is way higher.  In the winter, the fund balance builds, where in the summer it falls off.

After having estimated these categories, it turns out that I’d been overestimating a couple by a little bit.  This allowed us to reduce a few of the categories by a couple of dollars each, which we’ll now use towards a ‘May fund’.

Similar to a ‘December gift’ fund we have, we need a little extra for the month of May.  Mother’s Day, my wife’s birthday, and Little Boy Beagle’s birthday all happen in May.  We don’t go overboard on presents or celebrating for any of those things, but the gifts and celebrating does add up quickly.

Plus, we’ve found that May often happens to be the month where supplementing our summer wardrobes takes place.

In short, the outlays for May spike.  So, an extra few bucks per month over the course of the year will be dedicated toward the month of May.

We just started the contributions this month, so we won’t feel the benefit, but I know next year at this time, we’ll definitely be happy for the decision!

Do you keep a December gift fund or fund for any other month where expenses are high?

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4 thoughts on “Starting A Month-Of-May Fund

  1. We have a similar system, but not as detailed. We have a budget for each category that is set for a higher-average-month and has all of our basic savings goals included.

    At the end of the month, if we have any leftovers, they get divided up – Emergency Fund/Savings account (25%), the Extra Cash for Investments account (35%), the Vacation account (20%), and our two individual Fun Money accounts (10% each).

    For big expenses like vacations or board games, we take the money from the appropriate accounrs. If we ever go over budget on basic expenses, we use the Vacation account to pay the difference. It hasn't happened yet, but if that is not enough at some point, we would dip into the Emergency Fund.

    I like having everything broken down like this for the ease factor. 🙂

  2. That sounds like a great plan beagle, I dont currently have a fund like this, but I havent thought of it either. I think if I find an area of the year where a lot of things are happening that cost money, Ill do this.

  3. I love this! We put money aside for Christmas… but i'd like to start a fund for holidays and birthdays… but that's something we will have to wait on until SCB has a job.

  4. Thanks for all the great comments:

    @Crystal – Sounds like a great system. We run more on a zero-based budget system so any extras usually get evened out by a shortfall in a later month.

    @Jeff – If you find yourself stressed out at any particular part of the year, you'll definitely find this helpful in the long run.

    @South Country Girl – My eventual goal would be to have this as a secondary fund that could be tapped into for any non-Christmas gift, but it'll take extra funding to accomplish that. For now, the May fund is a good start!

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