Like thousands of others I received an e-mail from my health insurance fund recently. You guessed it! My premium just went up!
I’ve had a budget plan in place that I have been following for about 5 months. I have a quick 5 minute check-up each week and that keeps me pretty-well on track with that plan. However, now the plan needs to be adjusted.
That means it’s budget ‘Roll-Over’ time!
If you are a regular user of the Simply Budgets system you will most likely know what I am referring to here. If you are not a regular user, ‘Rolling-Over’ simply means moving (or Rolling) the starting point of your budget plan forward so it starts today instead of in the past.
After rolling my budget forward, starting from today I will have a new plan that includes a higher Health Insurance premium. I’ll take this opportunity to look up and down my list of budgeted expenses and check to see if anything else could do with a tweak and then I generate a new plan, with a new starting point.
The 6 months I just ‘rolled away’ may not have happened exactly as per the plan but the past is gone and can’t be changed so all I am really interested in is the future.
Rolling my budget forward allows me to have a new start and a new plan for the future.
From time to time people ask me “When should I roll my budget forward?”
There are three reasons why you would do this.
1. If something changes.
Like in my case above, an expense changed. I needed to change the plan to include that updated insurance premium.
If your income goes up you don’t need to change your plan for ‘Regular Expenses’ but you might want to consider increasing your savings (which would require a roll-over).
2. If you are considering making a change.
Maybe you are interested in buying something such as a new car, a house or a boat; or you might decide to save up for a holiday; whatever it might be, it is a really good idea to create a backup of your budget (so you can get it back) and then roll it forward to a new start and then make the changes you are considering.
If you like what you come up with you may want to adopt that new budget plan. If you don’t like it, then it is lucky you found out BEFORE making the change! You can simply restore your backup and go back to the plan you were following.
3. If your plan is not working
I hope this is not you, but if you set your budget targets too high and have fallen behind and have now realised you are never going to catch up to the plan, then you should roll your budget forward to start today and then make the changes you need to in order to relieve the pressure.
We’ve been talking about being between a financial ‘rock and a hard place’ over the last few weeks. This third reason for rolling your budget forward might be because of one of these situations. One where you need to bite the bullet and make a decision or a change you have been thinking is too hard.
Using Simply Budgets is like having a crystal ball attached to your bank account. You get to see the future and make choices today that will make
Would you like me to be your coach for the next 12 months?
I am now taking new enrollments for my Simple Wealth Steps course.
If you have never enrolled in my Simple Wealth Steps course now is a really good time to do so because for everyone who joins me before the end of March, I am going to include regular teleconferences where I will go over the lesson’s, answer questions and do everything I can to make sure you stay on track.
The course is a low cost journey over the next 12 months that offers powerful education that will help you not only with information, but also with motivation and enthusiasm. Each week you have a short article to read that is relevant to the topic that week, and you will have a task which is designed to get you thinking and taking some kind of action.
Please note. I am not enrolling people who are not serious about changing their lives. If you are the kind of person who falls off the wagon at the first bump please don’t waste your time or money.
When you enroll there is a questionairre to complete and a week of orientation. After that we will decide if you should continue or not.
Click Here for more information about Simple Wealth Steps.