1. Gifts
Wedding, baby shower, graduation, birthday, and holiday presents simply aren't part of your daily or weekly spending, but if you don't plan for them, they begin to chip away at the money you've saved for long-term stuff, like retirement or buying a home. And while the odd spa gift card isn't going to make a difference, a year when you go to five or six weddings will, says Sarah Chang, editor-in-chief of personal finance website GoGirl Finance. Check your bank and credit card statements to see how much you've coughed up for gifts in past years, then average out those numbers to arrive at a reasonable amount to sock away, says Clare Levison, author of Frugal Isn't Cheap: Spend Less, Save More, and Live Better. To do it, put money into an "unexpected" category in your budget or savings account. "You can't plan for every single detail, but you can create a slush fund," says Levison.
2. Unforeseen travel costs
Whether you misplaced the save-the-date for a friend's wedding, didn't plan to fly in for your cousin's baby's christening, or didn't realize how high holiday travel costs would spike, it's easy to space on some pricey stuff. Plus, other expenses can sneak their way into your time away, like forgetting your good shoes and having to buy a new pair or taking your extended family out to brunch. Knowing that, aim to save and deposit around 4 percent of your take-home pay into that unexpected fund. It might not cover everything, but it gives you a good foundation, says Brandhyze Stanley, founder and editor of frugal-living website Frugal-Nomics.
3. Unexpected but necessary clothing purchases
"People often forget to save for things like new winterwear, job interview outfits, or workout clothes to go with a new gym membership, thinking, I'll eventually get it or I'll buy it when I fall in love with the perfect item," says Stanley. But especially during a winter like this one, you may need to buy many things — a coat for you, boots for your kids, gloves for your husband — in one season. Plus, it's easy to feel justified spending more on a new office or gym outfit because of the I-deserve-it-for-working-hard mentality. To plan for that, save a cushion of 2 to 3 percent of your take-home pay in your unexpected fund. And plan accordingly for the fact that you'll likely spend more in winter than in summer.
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4. Tech breakdown
It's happened to all of us — you lose your phone or the screen breaks, the battery on your laptop goes haywire, and it's as much of an emotional drain as a financial one. Plan to save around 6 percent of your take-home pay for repairs and upgrades, suggests Stanley. And while purchasing warranties and insurance up front can add to your initial bill, it's often worth it to avoid unexpected charges sneaking up on you. Either factor the money into your unexpected fund or use a portion of your year-end bonus or tax refund.
5. Non-food home items
Sure, you know what you spend every week on groceries, but what about toilet paper, shampoo, and cotton balls? If you don't keep track of these costs, it's easy to end up paying more than you have to. "If I'm running low on wipes for my 1-year-old, get distracted, and don't get my order in to diapers.com, I'm going to end up running to the drugstore and buying a smaller pack at a higher price," says Chang. Though there's no set amount to budget for this one, our money-saving experts agree that the best strategy is to factor this stuff into your regular grocery budget. You may not save money, but gradually rotating costs into your weekly grocery bill will keep you from having to make a single, giant purchase. Then, check your store's money-saving flyer so you don't end up buying tissues the day before they go on sale — always a major bummer.
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6. Daily vacation costs
People tend to underestimate how much they're really going to spend on holiday because, well, that number can be a hard one to swallow. But it doesn't feel any better to get where you're going and realize you've forgotten to factor in the cost of meals, transportation, or entertainment. Depending on your plans, it makes sense to allot $50 to $100 per day, which you'll find in the entertainment portion of your budget, says Rebecca Jackson, director of strategy and operations at GoGirl Finance. Or make a point to start stashing away money for each vacation day's activities as soon as you book your trip.
7. Home and vehicle repairs
Having to replace your tires or deal with a broken air conditioner is completely unforeseen, so it's no wonder we overlook those costs. While you can't exactly prevent snafus, the trick is to stay up-to-date on care and repair, and once you do notice a problem brewing, start saving immediately, says Levison. How much you budget depends on your situation—do you own your home? How old is your car? Is your equipment under warranty?—but $600 is a good place to a start. Put it into your general emergency fund, stashing away around $50 per month.
8. Irregular child-care costs
"People are very conscious of their day-care payments because they write a check for the same amount to the same person every month," Levison says. "But when something isn't a bill, you tend to forget about it." That's often the case with needing a last-minute babysitter on a snow day, when you work late, or when you have a party to attend. To account for these sure-to-happen-sometimes events, add a small cushion, say, $50 to $100, to your monthly child-care budget.
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9. Emergencies
You don't want to think about potential doom and gloom, like a natural disaster hitting, unexpected medical bills, or losing your job, so in the moment it's easier to figure, out of sight, out of mind, Jackson says. However, most experts recommend having at least three to six months' worth of living expenses in liquid cash ready to go in case you need it. Arrange for a monthly sum to be transferred directly from your main account to your emergency fund — if you never see it, you're less likely to miss it, says Chang. It's also smart to make a list of situations that would warrant dipping into that money — and only do so if they occur.
Sarah Kaufman is the editor-in-chief of the Manilla Folder at Manilla.com, a free service that helps you manage and share your bills, finances, utilities, daily deals, travel and rewards programs, health-care accounts, and subscriptions — all in one place. Sarah is also a regular contributor to Yahoo! Finance, The Huffington Post, Good Housekeeping, Esquire, Woman's Day, The Motley Fool, and other major sites.
This post originally appeared on RedbookMag.com
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