In order to keep your finances on track, budgeting is crucial. While many people utilize a budget, they often forget to factor in all their expenses. A new year is a good time to re-evaluate your budget to make sure you’re not missing any of these often overlooked categories.
1. Subscriptions and memberships
Costs like rent and utilities are easy to remember, but other monthly expenses are often overlooked. To budget for an annual magazine subscription or gym membership, divide the annual cost by 12 and set aside that amount each month.
2. Gifts and special occasions
Birthdays, holidays and anniversaries are some of the most fun days of the year. Since you can always anticipate these occasions, it is easy to budget for them. Add up your costs for these occasions and divide by 12. Factor in the cost of presents and any special dinners or parties.
Be sure to include a line for savings in your monthly budget. One trick is to pay yourself first by setting up automatic transfers from your checking to your savings account on payday. Consider establishing an emergency fund, add to your retirement savings or save for goal-specific things like vacations or education expenses.
4. Home repairs
While home maintenance costs like carpet cleaning and landscape upkeep are annual and easy to budget for, some repairs are unforeseen. Allocate a certain amount each month to cover any surprises.
If you find yourself going over budget every month, make sure you are factoring in all these little expenses. If you spend money on anything, it should be included in your budget. For more budgeting tips and financial advice of all kinds, visit your friends at Sunset Bank. You can contact us online or drop by one of our Waukesha bank locations.