Preparing a meticulous budget is indeed the best way to keep track of your daily spending. An effective budget will keep track of every cent going in and out of your pocket, ensuring that it is categorised and allocated properly. However, when some items are forgotten, the budget planning just goes into the drain – being ignorant of your expenses can lead to frivolous spending. Do you know what costs and expenses are commonly neglected?
Before reading on, do keep in mind that some of these expenses may not be relatable to you, but they are the common ones that tend to steer your budget to the wrong side.
1. Monetary Donations
This monetary donation often gets neglected because it isn’t a common practice for most of us. If you are someone who commonly make monetary donations, it is best for this positive habit to be included in drafting your budget. An effective budget should cover all spending, and this is no exception.
2. Household Expenses & Maintenance Costs
Living in your own house means that everything is your responsibility. It is wise to set aside a certain amount of money that s be spent on household maintenance. Unexpected expenses on repairs and maintenance are often being overlooked and unplanned for, and it will ultimately affect your budget.
A sudden water leak or a broken pipe could cost a lot and requires immediate action. Set aside a certain amount of cash every time you make a budget that is specifically only for house maintenance so that you can stay prepared for these unexpected expenses.
3. Pet Care & Expenses
Like our own sick visits to the doctor, treatment for your sick pets tend to be expensive and unexpected, not to mention the routine check-ups every now and then. You shouldn’t just budget for health, but even for grooming and care products such as special shampoos, food, and even your pets’ toys. With that being said, the inclusion of pet care expenses in your budget will avoid financial complications and keep our heart at ease while looking after our lovely companions.
4. Beauty & Grooming Expenses
Maintaining good looks and even better hygiene isn’t a free affair and will require you to spend money. We aren’t just talking about buying soap, shampoo and cleansers however, we tend to forget that most of us (particularly the ladies) go for special treatments like going to the spa, waxing, or even the occasional essential-care-shopping-spree.
All these expenditures need to be included in your budget planning, even if is just for a packet of facial tissue. Always allocate a specific amount of money that you will spend on pampering yourself (if you need it).
5. Birthdays & Other Occasions
It is best for you to know beforehand for any birthdays or weddings that you are going to attend in a month. With this knowledge, you can allocate your budget for the expenses of buying gifts and other miscellaneous spending. All of these occasions can cost you money and it is best for you to be a step ahead in planning the monthly budget.
6. Parking Fees
Almost unavoidable, especially for those who often drive to work. Budgeting for parking can be easier for those with consistent patterns, as a season pass may be used. Those who drive their cars at unpredictable times may find it slightly more difficult, though not impossible.
Just set aside a certain amount of money for parking, easily calculated by taking the most you’ve spent on parking in a month and adjusting it as you go along.
7. Emergency Funds
A lot of people live in the moment and live paycheck-to-paycheck without any care for savings or emergency funds. It may seem like a “badass” thing to do, but it’ll be tears when the unexpected happens (touch-wood). To play it safe, it’s always important to first pay yourself (savings) in your budget and then to set aside amounts of money for emergencies – don’t shy away from letting it pool either.
Effective financial planning requires due diligence as well as being meticulous. There are certain situations whereby we forget or miss something, but it should not be an excuse for poor budget planning.
Proper budget planning can help us maintain our finances and, to an extent, keep us discipline. Identify your expenses in a period of time, trim the fat, and always remember to prepare a contingency plan or Plan B if something unexpected happens. Want some help with budgeting your expenses? Check out some free apps you can use for this purpose in the link below!