I started budgeting by event instead of by month
I've been doing my budgeting a little differently lately, and I'm curious if anyone else does something similar.
For years, I tracked my fixed expenses in Excel - rent, insurance, subscriptions, groceries, etc. Basically the usual monthly overview of where the money goes.
But at some point I started tracking individual events instead.
Things like:
- vacations
- weekend trips
- wedding
- birthdays
- moving
- bigger projects or purchases
Instead of just having a category like “travel,” I create an overview for each event and track everything that belongs to it.
And I mean everything. For a vacation, that might include transportation, accommodation, restaurants, activities, little purchases along the way, etc.
I've been doing this for a while now and something interesting happened: I've started building my own little catalogue of event costs.
After a few vacations, I can look back and see what previous trips actually cost me. Same with weddings, family events, moving, and so on. When something similar comes up again, I have a much better idea of what budget I should expect.
It also answers a question that a normal monthly budget doesn't really answer:
“How much did this thing actually cost me?”
A monthly budget tells me what my normal life costs. Event-based tracking tells me what it costs when something out of the ordinary happens.
It has also made budgeting for future events much easier because I can use previous events as a reference instead of guessing.
I saw a recent post here about budgeting from CSV exports rather than using automatic bank syncing, and it got me thinking about how differently people approach budgeting in general.
So I'm curious: does anyone else budget around events/projects rather than only monthly categories?
I'd love to know if I'm accidentally building a very nerdy personal “event cost database” that other people are doing too. 😄