It’s no secret that budgeting is the most powerful first step you can take on your journey to financial freedom https://jmvfinancialservices.com//budgets-friends-not-foes/ Delegating your income for expenses like your mortgage, car payment and cable may seem obvious, but here are eight not-so-glaring and often forgotten expenses that can sneak up on you if you’re not budgeting for them.
1.Unexpected road trips or travel. It’s a good idea to put aside a few shillings each month for spur-of-the-moment weekend getaways or that must-attend New Kids on the Block Reunion Tour and even for those less than pleasant trips for events such as funerals.
2. Car repairs. Every 3,000-6,000 miles your car needs an oil change, and depending on the type of car you have that can cost anywhere from $30 to $100 every two months. While it’s relatively easy to find an extra $45 to put toward fresh oil, it’s a more severe hit to the bank account if there are any serious repairs that need to be done to your car. Tucking away even an extra $10-$25 per month for that timing belt that could go bad will be money well saved if that times does come.
3. Field trips and other kid-related “musts.” Even when you know at the beginning of the school year your kids will be going on that trip to Washington DC in April and you think you’ll have “plenty of time” to save for it, September is the best time to earmark a few dollars in your budget for it and any other extras your kids might “have” to experience…such as birthday parties, yearbooks, sports equipment and food for the away games.
4. Health insurance. If you’re employed by a company that offers health insurance, this one doesn’t need much explanation.
5. Pet care. Vet visit rates seem to be increasing by the minute, and it’s not uncommon to leave the office with $500 less in your wallet than when you walked in – and that was just to have your dog’s teeth brushed. Be sure to look into supplemental pet care insurance as well as putting all your loose change in an empty treat jar just in case.
6. Home repairs. When you least expect it, a hail storm hits and damages your roof. Or the refrigerator decides to stop refrigerating. Or you 3-year-old flushes her favorite toy down the toilet and you have to call in the expert fixers. Having money in your budget for these types of “rainy days” will have you putting away your umbrella a whole lot faster than if you have to borrow or go into credit card debt to pay for the repairs.
7. Quarterly or yearly dues. Speaking of home expenses, HOA dues are easy to “worry about later”…until that later becomes now. You can either save monthly for your quarterly or yearly dues or ask to get a discount for paying for all of your various memberships up front and in full.
8 .Coffee, tea or…food! Who doesn’t want a venti skinny half-caf white mocha with extra whip every now and then? Or a reduced guilt 78-ounce frozen yogurt with peanut butter cups and gummy bears all for the low price of 43 cents an ounce? Whether it be a regular coffee run or a weekly lunch out with your co-workers, these “treats” can be a hidden drain on your bank account if you don’t allow for them in your budget.
If you’re ready to talk to someone who’s an expert at finding hidden expenses and who can set you up with a full-disclosure budget, click here to schedule your free strategy session.