It's ok to Go out of Budget once in a while

This month I have gone way out of budget, this is because I have to pay 4 months school fees at once since my daughter have started going to new school. The school has a big campus and also it is bit costly so paying 4 months fees at once is quite heavy.

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And the problem is I could not pay using Credit Card as school was charging 2% extra when paying using credit card and thus I have to pay all in cash which has actually changed my budget for bad. I will recover that thing in next 3 months but again this has made a dent on budget for this month. And I feel it's ok.

This is because I have budget that amount divided by 4 every month and now, I just have to get thar amount from the emergency fund and thus keep putting that extra money every month in the emergency fund. And thus it will be streamlined. This is again one of the many advantage of having a emergency fund which can help you in tight situation like these.

Again if by any reason you will not have the emergency fund then it will be little tight. Then we can actually pay the 2% extra in credit card and then pay that next month. Or we can move some funds here and there from the budget and can streamlined that in next few months.

So that's why going out of budget once in a while like these situations is ok, because there is no way out. But again it's not ok to go out of budget every time. So the next time what I have to do is to keep aside thart money every month so that next installment I have the total amount with me.

I am also thinking of creating a recurring deposit every month and thus after 4 months, we can use that money but the problem is recurring deposit doesn't created for less than 6 months. So my option for recurring deposit will work from the next year. That is creating the recurring deposit for the next year starting today and thus it will not leave a dent on my monthly budget.

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