If you’re like most people, you make an annual/monthly budget and later discover that you forgot to include all sorts of expenses. Let’s take a look at some of the most common things that people forget to budget for. This way, you won’t have to scratch and claw to make ends meet because you’ll have prepared for potential expenses ahead of time.
The things we use in our daily lives are built to break. Product manufacturers predominantly abide by the concept of planned obsolescence. This is a term that refers to the intentionally limited lifespan of consumer products. Do yourself an enormous favor by budgeting for such malfunctions before they actually occur. This way, if your car requires a repair or if your computer won’t start, you’ll have the necessary funds for a repair/replacement.
It’s easy to overlook the cost of life insurance when planning a budget. Consider what you’ll do for insurance if you lose your job. Or, maybe you’ll add a dependent this year. If such a situation arises, you’ll need money for monthly life insurance premiums. Even if you don’t plan on adding dependents in the near future, it’s still prudent to set funds aside for life insurance just in case the worst case scenario comes to fruition.
Some people really do forget to budget for retirement. Most people can’t resist spending on items and experiences they desire today. Think ahead to your golden years. Save money from each paycheck so you have funds available for your 60s, 70s and beyond. If your employer offers matching contributions for a 401(k) or other savings plans, enroll and create a budget that dedicates money for that plan.
Plenty of people fail to budget for gifts. Consider just how much you really spend on presents for birthdays, Christmas, weddings, anniversaries and other special events. Blowing through your budget before a major holiday will prevent you from buying nice gifts for your family members and friends. So budget in a good amount of money for gifts at the beginning of the year and you’ll be able to brighten the lives of those around you.
Most budgets are centered on mortgage payments, insurance payments, food costs, utility bills and other necessities. Don’t forget to set aside some funds for travel and fun.