Adjusts to Your Current Needs Each Month

• A flexible budget can adapt to changing needs throughout the month or from month to month. This means you can set your categories at the beginning of each month depending on what expenses you are facing. For example, in August you may increase the clothing budget to cover back to school shopping. In December you can increase your gifts category to cover Christmas presents.
  
  

Handles Emergencies

• A flexible budget allows you to handle emergencies by moving money in between categories to cover the unexpected expense. For example if you have an unexpected car repair, and no medical expenses that month, you can move money from your medical category to cover the extra money you need in your car repair fund. You can move money from several categories to cover the unexpected expense and just tighten up spending across the board to avoid going into debt each month.
  
  

Works Well for Irregular Income

• A flexible budget works well for people with irregular income. You should have a list of necessities that need to be covered each month, as well as a savings category to put money in on your good months to cover the low months. After you cover those expenses, you can choose how to divide up the remainder of the money to spend on the different categories in your budget. It makes it easy to handle each month's income and expenses without too much stress.
  
  

Monitors Your Current Financial Situation

• Since your budget is more fluid than a set budget, you will need to record your expenses each day and carefully track how much you have spent in each category. This can increase your awareness of your spending habits, and may help you find areas where you can easily cut back or areas where you really need to budget more money each month. It will also make you aware of the times you are dipping into savings or if you are using your credit cards to cover overspending. As you make adjustments, you can make sure you stick to your ultimate budget.