Frugalista: How to Budget Big Purchases

FAQ: So now that I have a budget, what do I do when I have a big purchase that surpasses my budget?

Let's face it, week to week you might be over and under the ol' budget. For instance, you might have to buy two bridesmaid dresses when two of your best friends decide to get married in the same week (you know who you are!). Occasionally you might need to use your credit card or tap your emergency savings. But before you do those things, consider the no-interest loan you can tap (and it’s not your parents): “Borrow” from yourself.

It's great to save ahead for big things, but believe me, I know that doesn't always work. So you might have to "save in reverse," meaning that if you make a big purchase, you can deduct from future budgets. For instance, let's say you have to buy a $250 dress; you can buy the dress and take $50 off your budgets for the next five weeks.

If your budget doesn't allow enough leeway to pay that much upfron, just don’t save any money that month. Write your savings an I.O.U. and when your budget is all caught up, you can contribute double.