It is important to establish a thorough budget in order to keep your financial life in order. However, there are cases where not every single aspect of your spending gets accounted for, defeating the very purpose of creating a budget in the first place.
Budgets work best when all your money, both going in and out of your pocket, is accounted for, categorised, and allocated properly.
Doing this diligently allows you to make financial decisions more clearly and monitor spending habits much, much easier. If there are expenses that get neglected, there is a strong possibility that this might completely throw your budget off.
So what are these expenses that we all tend to overlook once in a while? Here are some of them:
Donations to charities
Charitable donations are easily negligible because, whether we admit it or not, we tend to make donations out of habit. If you usually donate to charity or religious bodies, then it is best to finally include this in your budget. Your budget should cover all regular expenses, and donations to charities should not be an exception.
Household expenses and maintenance costs
If you live in your own house (meaning there is no landlord to fix things for you) it is best to set aside a portion of your money towards household maintenance. Maintenance costs throws off people’s budgets because it is rare that people actually factor this in when creating a budget. Keep in mind that the need for house maintenance or repairs can crop up any time, so it is best to include this in your regular budget.
Pet care expenses
By that same token, pet care expenses also need to be included in your budget. Pets get sick, and going to the vet is not cheap. Not having this in your budget would result in a lot of financial complications that go along with the emotional stress brought on by a sick pet.
Beauty and grooming expenses
We all want to look good and while spending for bath soap and facial cleansers are already in your grocery budget, we tend to leave out other necessities like perfumes, makeup or even hair cuts.
If you have plans to replace your lipstick or even get your legs waxed, then you should include these expenses in the budget. Not just the major expenditures, but all the expenditures you’ll need for the month.
You may think it is just the tiniest bit lame to plan even your beauty activities, but budgeting is all about planning. Including grooming in your plan ensures you actually have more of a chance to indulge yourself.
Birthdays and other similar occasions
If you make a monthly budget, then make it a point to find out if there are going to be birthdays or weddings that would require you to purchase a gift for a friend or relative. Particularly when attending a wedding, where you are required to dress up as well as bring a gift.
These occasions cost money and it is best to include them in your budget when you plan your monthly expenses. You would enjoy the act of gift-giving more if you knew it was not coming at the expense of other monthly expenses.
It is strange how much parking costs these days. What is stranger is that a lot of people do not include parking fees in their budget despite spending on parking nearly every day.
Again, a budget is supposed to cover all your expenses, and something that you spend money for on a daily basis should definitely be included there.
It is easy to overlook the little things in life. However, you can easily work on these if you want to have a more efficient way of managing your personal finances.
Always anticipate the worst and you will be better equipped to handle an unexpected event when it pops up. Be more thorough in your budget and your life will surely be far better for it.
This article first appeared in comparehero.my