If you have a household budget, you're doing better than most! It does not matter how thorough you attempt to be when constructing a budget. There are usually a few things that escape your mind.
It's the little surprises that can ruin well-laid plans. This is especially true with personal financial matters. Remember to consider these areas to help you when creating your budget.
1Big Ticket Items
Is there a new car, vacation, or a new washing machine in your near future? These items often slip our minds when making financial plans. Plan for and include these expenses in your budget projections.
2The Non-Monthly Bills
Since most bills are paid monthly, budgets are set up on the same schedule. However, some payables aren't paid twelve times a year. Depending on where you live, the water and trash bills might be quarterly.
Automobile registration is an annual bill. This is a small amount in many states, but it can be a large bill in others. Set aside a little each month if the expense is considerable. Subscriptions and memberships are other non-monthly bills to consider. These can include gym memberships, magazine or newspaper subscriptions, and warehouse club membership fees.
3Medical And Healthcare Expenses
Eye examinations, dental checkups, and annual trips to the doctor are other expenses that many people forget when creating a budget. If you need a new pair of orthotics each year, include them, too. Consider your regular medical expenses and accommodate or add them to your budget.
4Property Taxes And Insurance
Property taxes can be built into your monthly mortgage payment. But this isn't always the case. If you're no longer carrying a mortgage, it certainly isn't the case.
Plan ahead. Insurance premiums are often paid annually or quarterly. Remember to budget for these.
5Repair And Maintenance Costs
Home and car maintenance and repair costs can vary from year to year. It's easy to plan for oil changes and furnace filters. But how is your roof looking?
What about the tires on your car? These possible expenses also need to be budgeted. You just need to remember them.
6Your Clothing Expenses
Think about your clothing costs for a year and include a line item in your budget. Do you have any special occasions this year? Perhaps, a wedding or other formal event will require special financial consideration. Everyone needs to buy clothes occasionally.
7Gifts For Christmas And Birthdays
Christmas and birthdays have a way of sneaking up on people. It might be a good idea to start saving and maybe even some shopping in January. Christmas can be a major expense, depending on your tradition and the size of your family.
8The School-Related Expenses
School supplies, field trip fees, school lunches, physical activities or sports, and many other costs can add up over the school year. Consider all of your expenses before hitting the stores for your back-to-school shopping. If you are a parent, make a budget to save on your kid's school supplies.
9Expenses For Your Pets
Did you know that an average of $500 per year is spent by U.S. households for their pets? If you are planning on bringing a pet friend into your home, be sure that you will be including your furry friend's expenses in your budget. This includes food, boarding, health care, toys, grooming fees, bedding, and any other supplies that you feel your pet needs to be happy and comfortable.
It's essential to account for everything in your budget. A household budget isn't very effective if many of your expenses are excluded. Many financial expenditures are routinely forgotten when a budget is constructed. Go over your bills from last year and ensure that you include everything relevant.
Jackie Wing is an Alaska native, who enjoys snowboarding more than is probably socially acceptable. She lives in Anchorage with her two dogs Reese and Peanut, or as she likes to call them "Thing 1" and "Thing 2."