Important Things Missing From Your Budget
Less than a year ago we worked our way out of $33,000 in credit card debt by selling junk, cutting expenses and doing multiple side hustles.
We used our own income/expense/debt sheet and had monthly (sometimes weekly) discussions to review our progress and make sure we didn’t forget any expenses.
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Track your money so you can:
Get a broad picture of your current financial situation.
Visualize how long it will take you to get out of debt.
Save more money.
Plan for unexpected expenses.
Tell your money where to go.
Even though we’ve been out of debt for over a year, we’ve had a few close calls. (I refuse to go back!)
If you hate budgeting as much as my husband does, read The Automatic Millionaire. Author, David Bach says most people don’t like to budget and even fewer follow them. Budgeting doesn’t work for everyone and that’s just fine, you can still be rich with his step-by-step process.
However you decide to track your spending, you won’t want to forget these very important budget items. They can make or break your financial progress, especially if you don’t have an emergency fund saved.
Using Cash Envelopes and Wallets for Better Budgeting
What expenses do most people forget to put on their budget?
Items people forget to put on their budget tend to be seasonal, yearly expenses, unexpected, and/or change in price.
SIMPLE BUDGET CATEGORIES
#1 CLOTHING
Do you buy new clothes once a year, when it’s on sale, or year round?
Estimate how much you spend a year and divide it up by 12 months.
If you don’t spend any money on clothes (shoes, jackets, hats, etc.) one month then save it on the side until you do need to spend it.
I often wear a uniform to work, which has helped me save money on clothes. I save money by buying used or slightly used clothing from Poshmark, Mercari, thrift stores, and in the clearance sections. Sometimes it can be cheaper to buy new so shop around.
I just used the free cash back site Ebates to score 15% cash back from Macy’s and New York and Company. It’s free to join, all you need is an email address.
Read my full Ebates review to see how we earn several hundred dollars a year.
#2 CAR INSURANCE
Some car insurance companies will give you a discount if you pay your premium in fewer payments.
Car insurance isn’t cheap so this is an item you definitely don’t want to forget to budget for whether you pay for it yearly or monthly.
#3 LICENSE RENEWAL/CAR REGISTRATION
This is a yearly expense that I tend to forget. We have 3 cars so this averages to be about $200.
Forgetting to budget for an item or two is no big deal, but as you go through this list you’ll see these expenses can add up very quickly.
#4 BIRTHDAYS
Budget for birthday parties and everything that comes along with going to or having them.
Food, cake, decorations, gifts, goody bags, etc.
#5 GIFTS
On top of birthdays, you’ll want to remember the holidays, baby showers, weddings, anniversaries, etc.
When you’re not sure how much you’re going to spend it’s best to overestimate if you can afford to.
My husband and I are conservative spenders when it comes to holidays such as Mother’s Day and Father’s Day, but we always celebrate in some form or another. If it’s in the so-called budget we occasionally splurge with a vacation.
#6 HOLIDAYS
Hosting parties means spending money, even a little bit, so don’t forget to put money aside.
If you don’t usually host parties, but attend them, I always think it’s nice to bring a gift for the host (wine, food, dessert).
Related posts:
How to improve your financial situation
Best things to buy after the holidays
#7 FORMAL EVENTS
Being popular stinks so thankfully I’m not lol.
You get invited to a wedding, then a baby shower, then parties galore.
Most of the time I can get away with putting an outfit together using something from my closet, but for formal events you might need to splurge.
Set aside some cash if you need to get a new dress or suit.
If you want to be thrifty check some second hand shops. I had a coworker get a suit from the Goodwill custom tailored and he only spent $12.
#8 HOME INSURANCE
The average homeowner’s insurance is a little over $1,000!
That’s a big chunk of money you’ll have to come up with if you aren’t prepared.
Don’t forget to pin for later!
#9 HOME MAINTENANCE/REPAIRS
Home upgrades and repairs aren’t cheap, which is why you should have an emergency fund for unexpected repairs and budget for regular maintenance.
#10 HAIRCUTS
I’m embarrassed to admit, but I only cut my hair once or twice a year. Part of it is because I’m lazy.
I’ve gotten some fancy haircuts for cheap using Groupon.
If going to a new hair stylist makes you nervous, stick with your own, just make sure to put it into the budget.
I now cut my son’s hair because 1) it grows too fast 2) he moves so much they usually end up doing a mediocre job 3) saves me money!
It’s surprisingly easier than I thought, you just need a good pair of clippers.
#11 MANICURE/NAILS
I know a lot of women who regularly like to get their nails done.
If this is a monthly expenditure then budget for it!
I get my nails done for special occasions, before going on vacation or as a little treat.
Other times I do gel nails at home using a lamp (the full nail kit and lamp is less than $50!) or use these gorgeous press on nails.
#12 PET EXPENSES
We have 2 dogs (and several chickens).
Their food isn’t costly, but it’s the vet bills and groomings that really add up.
Your options are to buy pet insurance, set some money aside each month, and/or cut your dog’s hair yourself. I’m currently learning how.
#13 CAR MAINTENANCE/REPAIRS
Regular car maintenance includes getting new brakes, tires, rotors, oil changes and for me my left wheel bearing.
A few hundred dollars here and a few hundred dollars turn into thousands.
I haven’t budgeted for these type of expenses and to be honest it has put a little strain on us here and there (sometimes I’ll tap into our emergency fund and they replenish it asap) so I plan to budget for these moving forward.
#14 HEALTH/DENTAL/EYE EXPENSES
Health insurance is something you need to budget for.
Our health insurance is very good, however our dental and eye insurance, not so much.
It cost close to $100 to fill our daughter’s cavity. Her teeth are just prone to them so I pay extra for her yearly fluoride treatments.
Budget for copayments, any out of pocket expenses, prescriptions, glasses, contact lenses etc.
#15 YARD MAINTENANCE
When we moved into our current home we had a tree removed and some spots of grass missing.
We paid for a lawn service just until the grass grew back in and now our yard looks better than ever.
My husband cuts the grass and we do our own raking and landscaping.
Maybe your property is enormous or you feel it’s money well spent to pay someone else to upkeep your yard and that’s fine.
Add this expense into the budget. Don’t forget to include estimated costs for soil, mulch, plants, and tools.
#16 TAX PREP FEES
Before we got married we did our own taxes using Turbo Tax.
Now that we are married, have 2 kids and 2 properties it has been to our benefit to hire an accountant.
#17 SUBSCRIPTIONS/MONTHLY EXPENSES
It’s easy to miss charges, especially if you like automating everything like I do.
Remember to budget for your gym membership, magazines, Amazon Prime, subscription boxes, etc.
#18 ENTERTAINMENT
I believe anyone who wants to save money and get out of debt faster should have multiple bank accounts. One of those accounts should house your entertainment money.
Do you enjoy going to Broadway shows, out to dinner, museums?
We go on a lot of outings thanks to Groupon and also because we automate savings that go towards our vacation/entertainment fund.
#19 DONATIONS
We frequently donate clothes, toys, money, and our time.
I’ve read in several great personal finance books that stress the importance of donating despite your current financial situation. They say, money will come back to you and I have found that to be true.
There’s always someone less well off than you. By donating it not only makes you feel better, but I think it just brings a lot of positive energy to you.
Whether you budget your money or not, these are the major expense items you need to keep in mind so you don’t get caught up financially.
Use the envelope systems for cash budgeting, put the money aside until needed, or automatically pay for recurring expenses.
What budget categories do you plan for so you don’t bust your budget? Please share below!!
