Budget Busters

Reader Question: My wife and I are working the Baby Steps, and we have our budget in place. Sometimes the budget gets busted because of home improvements and various other things. I think we should take money from our emergency fund when this happens, but she says it should come out of our restaurant and fun money. What do you think?

dave_ramsey I hate to break this to you, but overspending is not an emergency. If you budget a set amount in one category and you go over that amount, you’ve got to have something you reduce or cut out completely to stay within your budget for the month.

You’d be surprised at what some people call an “emergency.” But here’s the deal: If something happens on a pretty regular basis, it’s a predictable event. That means you need to budget a larger amount for home improvements or whatever the problem area may be.

Overall, on a month-to-month basis, if you find you have $200 budgeted for car repairs and the repair turns out to be $250, I’d rather you cut back on eating out to make up the difference. That’s the way my wife and I did it back in the day. We never touched the emergency fund for anything except big, unexpected, scary stuff.

Dave Ramsey

Dave is the author of The New York Times best-selling book Financial Peace. He is also the host of the nationally syndicated The Dave Ramsey Show, and is a regular guest on television. All of his financial counseling is based on biblical truths. You can hear Dave from 9 a.m. to 11 a.m., weekdays, on WLWI 1440 AM or online at www.daveramsey.com. Send your questions to askdave@daveramsey.com. He resides with his wife Sharon and their three children, Denise, Rachel, and Daniel, in Nashville, Tennessee.

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