With Christmas behind us and another year wrapping up, it’s time to make sure your January budget is ready. Here are five expenses you might want to fit into your budget for next month.
MAKE ROOM FOR ORGANIZATION IN YOUR JANUARY BUDGET
January is a month of resolutions for many, and a new year is as good a time as any to get organized. Haven’t bought your 2024 calendar and/or planner yet? Make sure it’s in the budget!
Nothing gets me motivated like a fresh new notebook and a new year’s calendar and planner ready to be put to use. I typically use birthday money and pick money out by the fall.
Bought more Christmas decorations or ripped up the original boxes? Check out the sales on storage totes and stuff. Get your holiday decor organized before it goes back into storage.
CHRISTMAS AND OTHER HOLIDAY DECOR
Speaking of decorations, if you can find it in the stores, it’s likely to be at a steep discount. Buy some filler ornaments or holiday-themed gifts ahead of next year while they’re on sale and save up to 75%. Selection is far from what it was at the beginning of the season, but so is the price.
This is a great time to stock up on gift wrap and tissue paper as well. You can get much better quality for a far lower price by waiting until after the holidays to purchase it.
GET A HEAD START ON SINKING FUNDS
I’ve said it before and I will surely say it again (several times), sinking funds are a very, very good idea. You can set up a sinking fund for any planned or expected expenses. Simply set money aside in either a cash envelope or separate banking account to use for a specific, larger expense.
For example, at our house, we have a Christmas fund (with auto payroll deductions) . Going into 2023 I plan to add to this account from my pay as well to boost this fund. We deposit money on a regular basis into an auto maintenance fund as well in order to cover auto related expenses.
We shop almost exclusively for Christmas gifts from the Christmas fund; whatever we’re paid the first week or two of November is pretty much our gift budget. Anything over that has to come out of December’s monthly budget. With an increase in costs as our kids get older we have decided to increase the amount for this sinking fund.
Our auto maintenance fund is supposed to cover everything from windshield wipers, oil changes, to tires. Instead of budgeting these items as they happen from the monthly budget, we make contributions as the budget allows it (ideally $100 a month) and deposit it into the account.
Making room in your January budget to start sinking funds is a great way to start handling your finances better in 2024. Check out these Five Useful Sinking Funds You Need in Your Budget.
HEALTH AND FITNESS GOALS
If your new year’s resolutions included health or fitness-related goals, you’ll need a plan. And you’ll likely need to budget for resources to help you achieve those goals. Gym memberships, fitness gear, and meal plan companies all offer promotions in January.
If you’re serious about making the time commitment, go ahead and make the financial investment as well. But make sure it fits in the budget first; and will continue to fit in the budget throughout the year. Look for annual fees, subscription charges, etc before signing on the bottom line.
SAVE BIG ON LINENS… IF IT FITS IN THE JANUARY BUDGET
January is a great month to stock up on linens. Stores offer sales on sheets and towels. I know I’ve used Christmas money to replenish our towels before. I might have to stock up on bedding next month. After I make room in the budget.
GET THAT JANUARY BUDGET READY!
Before you get too far into your New Year’s celebrations take the time to get your budget ready for the new month and start out 2024 on better financial footing!
Have a safe and happy New Year’s! I’ll see you in the next post. Until then, keep it frugal friends.