When you sit down to make a budget, remembering to include rent or utilities is easy. They show up in your budget every month at the same time and usually for the same price.
Unfortunately, not all expenses you encounter are as orderly as the ones above. Some expenses lurk in the background of your budget, emerging only once or twice a year. You don’t have to be a scatterbrain to overlook infrequent and irregular expenses like the ones below.
1. “Uh Oh” Money
Some people forget to build their budget around tomorrow’s emergencies. But this misstep might mean you don’t have the funds to hire a plumber when your toilet starts overflowing, or a mechanic when your check engine light blinks on.
Usually, people put these repairs on a credit card. But for those who don’t have credit available, short term personal loans may be a convenient alternative.
If you don’t know where to look when you need money now, going online to research personal loans is easy. The process is a lot like shopping for clothes or tech online. Just type in a few keywords into your search bar, and you’ll have pages of results to browse and compare.
An online loan can help you in a pinch, but it’s not a long-term solution for ongoing emergencies. Generally speaking, you should set aside some cash each month to pay for the unexpected on your own dime. Your goal should be to save three to six months of living expenses in this account.
2. Annual Memberships and Subscriptions
Annual subscriptions and membership fees can creep up on you and your budget. When they finally arrive, they can deliver a nasty shock if you don’t account for them in advance.
The problem is how infrequent they are due. After 12 long months between each payment, it’s easy to forget the surprise of last year’s bills until it’s already too late.
Here are some of the most common annual fees forgotten by the average budgeter:
- License and registration dues
- Taxes
- Insurances (life, auto, health, etc.)
- Credit card fees
- Streaming services (Netflix, Prime Video, HBO Max, etc.)
- Subscriptions (magazines, online news, delivery services, etc.)
- Club memberships (AAA, fitness facility, Costco, etc.)
Review your policies to find out when you can expect these annual fees and add them to your budget.
3. The Infrequent Miscellaneous
What do a bottle of moisturizer, a replacement filter for your furnace, and new work shoes have in common? It can be hard to prepare for these expenses because they pop up so infrequently.
If you always forget to include enough miscellaneous spending in your budget, look to last year’s spending for insight. Add up all the expenses that fit into the “miscellaneous” category and divide it by 12. This will give you a good idea of what this year’s miscellaneous monthly costs will be.
The Takeaway:
Forgetting to budget an expense here and there may not bust your entire budget. Their true power is in their collective. Overlooking multiple expenses at the same time can throw you a nasty curveball, leaving you to wonder how you can pay for everything.
While online loans are available in an emergency, you can avoid borrowing by budgeting with intention. Use this list as your cue to review your spending from the past year to catch those easy-to-forget expenses. This tip will help jog your memory!