So you just finished putting together your budget, what a master piece! It was grueling, you didn’t know you spent so much money on eating out. You didn’t know you were paying so much on credit cards?
There is a saying in the budget finance world, once the budget is done it is obsolete.
If you are new to budgeting or have been doing it for years there will be something you left out.
- Christmas is coming, it comes around every December. Pretty hard to not know about it. Most people don’t think about it until they start hearing those Christmas songs on the radio or those commercials to buy this buy that.
Your budget will be broken because you did not plan ahead. How about you decide in January to plan for Christmas. Who are you going to give a gift to and how much will you spend for each person.
Decide on a Christmas budget then include it every month and you will have the best Christmas ever. And by the way you can do this for other occasions such as birthdays and anniversaries.
- Car repairs and maintenance. This is a tricky one. Every time I think I have this one nailed down I end up with a surprise. The routine stuff such as oil changes and tire rotation I get. Then there is that unexpected repair such as breaks or a broken hose. And tires every several years. These things just sneak up on you. Try setting aside a fund to handle these. Let it build and then when these larger repairs come up you have it covered or at least you don’t have to not eat for a week or two to keep the budget in balance.
- Most just over look these. Your favorite magazine shows up every month and then one day you get auto charge. Wait what is that for oh yeah my subscription to (your favorite magazine). Include these in your monthly budget then when the charge hits you have it covered. How about subscriptions to Netflix, You Tube or some other monthly fee you are paying.
- The gym, Sam’s club, Costco. You enjoy these during the year then you get the renewal statements and you then have a few choice words. Include these every month and then no problem when the bill comes.
- Health care items. Out of pocket for a Doctor’s office visit or a pair of new glasses. These will really cost you. But once again planning ahead will avoid this surprise. Either include it in your budget or include a contribution to an HSA (Health Savings Account) to have when you need it.
- House operating expense. The house will need maintenance pest control a replacement water filer, septic tank treatments may be even some painting. Include a fund once again in your monthly budget.
- Clothing. This is a big one that is most often forgotten. You will need a new pair of socks guaranteed. So get it in the budget.
- Pet care. Have a dog, cat, hamster or some other fun animal. Well they will need to see a vet, have their nails trimmed. And you will feed them as well.
- Got kids. Want to go out for the evening then you will need a babysitter. Even funds for the night out. How about if the kids play sports or take part in some other after school activity which require a fee. Sometimes you will need to travel for competitions.
- HVAC maintenance. Keep your system in good operating shape and avoid a major expense. Change filters, maintain the coolant for air conditioning.
- Hobby supplies. Have a hobby that you enjoy then you may need some funds to continue to enjoy it. Don’t want to give up on your hobby so you will need some funds allocated to this activity.
- Technology replacements. Need a new computer perhaps software to go with it. This can add up quickly so be aware that a new computer or some other technology often requires accessories. Be aware.
- Professional society fees. If you are a member of an organization ie. Chamber of Commerce. Perhaps a license fee for nursing or pharmacist. These sneak up on you and can be often over looked.
- Haircuts and color treatments. Personally not an issue for me, my wife does my hair but sometimes the equipment needs to be replaced. These things can be forgotten but they part of life so get them included.
- HOA fees. Sometimes they are annually and they just surprise you. Be very careful with this one. Your mortgage company may not require you to pay this into the escrow account as you do for taxes and insurance. If you don’t pay the association can file a lien against your home.
- Extra bonus item. Now that you are thinking about forgotten expenses what else is there? A budget is unique to you. Get it included. As items come up ask yourself is this going to be reoccurring or is it one time? If reoccurring then get it in the budget.
The longer you budget the better you will become at capturing these types of expenses and the less likely they will bust your budget.
Once you know about these expenses get them into your budget add a line item. Start a sinking fund for them. Get them under control don’t let them BUST your budget.
You are in control. This is your budget and your money, so make sure you tell your money what to do!
If you need help in preparing a budget see our post on Creating a Budget.
10 Easy Steps to Creating a Budget that will put you on the path to Financial Independence
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