What categories are in your budget? One problem that many people have with budgeting is that they tend to leave something out. It can be any number of things often they are little. The little things can quickly add up and you may not realize where your money is going.
For example my husband loves to stop for a soda and a candy bar on the way home from work. He does this at least three out of the five days a week. Since he is stopping at a convenience store, it is usually about three dollars each day. That is at least nine dollars a week or thirty six dollars a month. Now this is not a huge amount, but if money is tight, or if you have already allocated every dollar to a specific place, it can throw you off.
Haircuts are another easy item to forget. Well it depends on how often you visit the salon. If you only go once every three months, it is easier to forget to include this amount in your monthly budget. In fact any expense that does not happen monthly is easy to overlook. Registration fees, museum memberships, annual amusement park passes can all fit into items you might forget to budget for.
Gifts are another area that can be easily overlooked. When you are talking and planning out your financial situation often birthdays and other holidays are the farthest thing from your mind. By setting aside a small amount each month, you can make sure that you aren’t scrambling to find the money for the perfect gift.
You may decide to throw all the little purchases into a miscellaneous category. This can be dangerous, because some months you may need to renew your car registration, and buy three birthday presents, but your miscellaneous money is not enough to cover all of these things. By planning ahead a bit and saving you will not face the same dilemma.
Related Articles:
Setting Up a Realistic Budget
The Importance of an Annual Budget
Financial Pitfalls: Discretionary Spending