4 Forgotten Expenses to Include in Your Family Budget
Wednesday, April 24, 2019, 6:00 AM | Leave Comment
Calculating a budget is an essential part to maintaining your household without going broke.
However, many families claim that they have tried a budget, but that it never really works for them.
In almost all cases, this is because their budget doesn’t really account for all of their spending.
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Finance Charges
You probably don’t consider these charges at all. If you’re like most people, you forget all about them until they show up in your bank statement. However, if you add your monthly checking account maintenance fee and similar charges to your budget, you can account for them in advance. This will save you from overdrawing on your accounts, while thinking you had that extra $10 in your account.
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Medical Care
If you have children, this may be a larger concern, but you never know when you’ll need medical treatment that won’t be covered by your health insurance. This can include an emergency trip to the dentist, the need for new eyeglasses, or another type of medical treatment. Each month, you should budget a small percentage of your pay for this possibility and, if you don’t need to use it, you can roll that money over into your savings. This will help you stay prepared for an unexpected medical emergency.
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Pet Care
If you have pets, you should recognize that your four-legged friend may need medical care or have other needs from time to time. For instance, people often forget to add pet food and treats to the budget, assuming these items fall in with groceries. That can lead you to miscalculate how much you’ll need for groceries. It’s best to budget separately for these items and to set aside a little extra for the pet’s medical care.
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Vehicle Upkeep
You probably have accounted for your vehicle’s insurance and registration needs, but that might be as far as you go in budgeting for your vehicle. Pay attention to how much you spend on fuel and upkeep of the vehicle. You should be budgeting a little something for repairs each month. Similar to medical care and pet care, saving for auto repairs and continuing to add to those savings can help you stay prepared. You never know when your car will suffer a major breakdown and require thousands of dollars in repairs.
The hidden costs of operating your household must be accounted for in your budget, or you will continue to fall short each month. As you discover one of these hidden costs, make a note to add it to your budget. The more accurately you can account for your spending, the better your budget will work for your family.
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