If you have been saving for a house or have recently gotten your mortgage and are now in the process of paying it off, you probably already have a budget. Even if you are not worried about running out of money each month, having a budget can ensure that you know exactly where your money is coming from and where it is going. Here are seven things that you should have in your budget but likely do not:
- Home repairs – Do you have money set aside for home repairs and maintenance? The average home costs $1000 a year to maintain. If you don’t have a line in your budget for this, you might find yourself struggling when you need to pay for a repair.
- Attending weddings – You likely have at least one wedding that you want to attend each year. Do you have money in the bank for traveling and other expenses related to weddings?
- Pet expenses – If you have a pet, you probably already budget for their food. Are you also budgeting for their medical expenses and other needs? Pet insurance is a good way to defray the costs of an illness or injury, but you will still need to have the money available to pay what insurance won’t.
- Clothes – Even if you recognize that you regularly have to buy new clothes, you might not actually have this worked into your budget. Especially if you have to buy new clothes for work, make sure your budget for this expense.
- Car repairs – Auto insurance will not cover all of your costs, all of the time. If you are in need of car repairs, even small repairs, making sure to set aside money each month to take care of these repairs will ensure you can afford those fixes.
- Subscriptions – Do you subscribe to magazines or have a membership to a gym? Costs like these that occur every month or every quarter usually are forgotten in most budgets, but can add up across the course of the year.
- Spare cash – Allocating every dollar of your income to serious expenses and leaving no cash for doing anything fun will quickly tire you out. Make sure to set aside some money specifically for having fun.