6 Expenses You May Have Forgotten To Plan For
If you’re on top of your monthly expenses, you’re doing better than most! Yet no matter how thorough we are, there are usually a few things that escape our minds. It’s the little surprises that can ruin well-laid plans. This is especially true with personal financial matters.
Remember to consider these areas when planning for your expenses:
1. Pet-related expenses. This category includes food, doggie day care, boarding, health care, toys, grooming fees, bedding, and any other supplies you feel your pet needs to be happy and comfortable.
2. Big ticket items. Is there a new car, vacation, or 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 projections.
3. Non-monthly bills. Since most bills are paid monthly, irregular bills can fall through the cracks.
· Automobile registration is an annual bill. This is a small amount in many states, but it can be a very large bill in others. Set aside a little each month if the expense is considerable.
· 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 account for these.
· Subscriptions and memberships may renew annually. These can include gym memberships, magazine or newspaper subscriptions, and warehouse club membership fees.
· 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 should also be budgeted for.
· Eye examinations, dental checkups, and annual trips to the doctor are other expenses that many of us forget to include. Consider what your regular medical expenses were last year and accommodate for them in your plan.
4. Clothing. Think about your clothing costs over the course of 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 on occasion. Don’t forget to also include dry cleaning expenses.
5. Gifts. Christmas and birthdays have a way of sneaking up on us. It might be a good idea to start saving, and maybe even shopping, in January. Christmas can be a major expense, depending on your traditions and the size of your family.
6. School-related expenses. Tuition, school supplies, field trip fees, school lunches, physicals for sports, school pictures, and numerous other expenses can add up over the school year.
It’s important to account for everything when figuring out what your expenses really are a year. Go over your bills from last year and ensure you have a realistic picture of your monthly expenses, and create sinking funds, goal accounts and an emergency fund for your irregular expenses.