I’m telling you… budgeting is fun! Especially when you mess up (in a good way).
A few weeks ago, I was getting ready to make our semi-annual property tax payment. I think it’s different in every state, but in Iowa, we pay them in March and September. Without proper budgeting, this could be a nightmare, especially considering that three out of three humans in our house have birthdays in March and September. Having enough going on already, if we weren’t saving for taxes on a monthly basis, we wouldn’t have enough money to pay our taxes.
Note: The bank that holds our mortgage doesn’t pay our property taxes or our homeowner’s insurance through escrow. They simply don’t offer that service, so we have to save for those two items every month. Most mortgage companies offer escrow.
This is an example of how easy YNAB makes it to save money every month. I’ve loved this feature since we started using the software, and in this case, it gave us an unintended bonus due to a miscalculation made by yours truly.
When I went to pay the property taxes, I realized that we not only had enough money to pay them, but we also had $997 left over in that budget category. WIN!
Here’s the simple math of what we should have been saving per month. Our yearly property taxes are $3,680.50. (Excuse my horrible hand-writing)
I think when we received our tax bill last year, they must have increased and we happened to be short a little bit, so I adjusted the budget category to cover the difference for the few months we had left before the payment was due.