Preparing A New Budget To Compensate For Seasonal Changes

Seasonal changes bring a different set of bills and those who are unprepared can sometimes be caught without enough money to pay for expenses. Winter means different costs for things like travel to see family, holiday eating, gifts, and even basic things like high utility bills, and renewing yearly expenses that come in early January. So as you can see, it pays to be ready for the upcoming season. That means preparing a brand new budget to compensate for the seasonal changes. 

Seasons Change How We Spend

Every season comes with different ways to spend money. Spring may mean home and garden improvements. Summer has vacation expenses. Autumn brings school expenses. Then, there is winter. 

While most people spend winter days at home, they spend extra money on food and higher heating costs. Kids coming home means more food and cash for them. Then, there are the holidays. You want the holidays to be great, but the expense can worry you as your bank account is drained. 

Get Control Of Your Seasonal Bills

And while this all may sound stressful, the truth is seasonal changes don't have to put you in the red with your bills. There are plenty of ways that exist to help you take control of both your spending and bills.

As a general rule, your budget is supposed to be flexible to account for these expense changes or fluctuations in your finances. But while you are getting a handle on learning how to budget your money, here are five things you can do to get control of your seasonal bills.

1. Ask About Skip-A-Month

Many banks and credit unions financing things like cars and mortgages are offering a skip-a-month program where you can ask for a one-month deferment on your loan. Every financial institution is different, but it never hurts to seek out these types of programs. 

Keep in mind that you aren’t skipping making a payment. This simply means the payment you aren’t making right now, will be added to your loan. This option works if you need short-term relief from your loan.

2. Take Out An Equity Loan

Equity loans are hard to come by now, but those who own their home and have good credit may have this option. Loans from equity lines are tax deductible and you can pay them off after the holidays when everything settles down.

The best part about this kind of loan is you have the benefit of paying it off in monthly payments. This means you can take it out to handle whatever situation you have and then slowly pay off the loan.

3. Borrow From Your 401(K)

This is one of those options that may not be available to everyone, but those who have a 401(K) can borrow from it up to the amount you have in it. However, you must pay it back within 60 days or face tax consequences. 

Keep in mind that this option isn’t one you should use often. Your 401(K) is for your retirement, so you shouldn’t make it a habit to dip into this account. But if you have a short-term need for money, this could be a viable option to consider.

4. Categorize And Divide

It takes some work, but you should categorize and add up expected additional winter expenses. Once you’ve done this, you can divide the number by the number of weeks of winter. Then, start putting that weekly amount from each paycheck into savings.

Doing this will allow you to stay ahead of your extra winter expenses. Just make sure to stick to your categories and that most of your spending goes to the most important expenses first.

5. Get A Loan Alternative

Those who may not have options to skip a payment, equity loans, or dip into their 401(k) still have options to help them with unexpected winter expenses. It's called alternative financing through a loan from us at Wisconsin Auto Title Loans, Inc. when you need quick money. 

You can look into our car title loans or you can look into getting our signature installment loans instead. And no matter which loan you choose, both of our loans come with an easy process for you to get through.

The maximum limit for car title loans is $15,000. Those seeking these loans must have a driver's license or state-issued ID, a lien-free title, and the vehicle available for an inspection. Signature installment loans range from $100 to $1,500. Those interested in this option need a driver's license or valid state ID, a checking account statement from an account that lists you as a primary account holder, and your most recent pay stub to show proof of income. 

Start Working On Your Seasonal Bills Right Now

When it comes to seasonal changes, you may have to prepare a brand new budget to handle the new bills you receive. And when you need help doing that, you don’t have to worry! Just follow these five tips to get a handle on your seasonal changes.

If you really run into trouble, you can come to see us at Wisconsin Auto Title Loans, Inc. for a title loan or a signature installment loan. Fill out the online form on our website to learn more about our loans right now.

 

Note: The content provided in this article is only for informational purposes, and you should contact your financial advisor about your specific financial situation.