A budget is an important tool to keep your finances on track. While many people develop a budget, they often forget certain expenses. A new year is a good time to take a look at your budget to make sure it accurately reflects your spending. Make sure you are including the following often-overlooked areas:
Costs like rent and utilities are easy to remember, but other monthly costs are often forgotten. To budget for an annual magazine subscription or gym membership, divide the cost by 12 and set aside that amount of money each month.
2. Gifts/special occasions
Birthdays, holidays and anniversaries are always anticipated, making them easy to budget for. Add up the cost of your annual special occasions and divide by 12. Include the expense of the presents as well as the cost of any parties or travel.
3. Travel Costs
You should be budgeting for the costs of your daily commute, but it is also important to budget for annual travel. Factor in expenses like gasoline, food for the trip, overnight stays, etc.)
4. Non-monthly bills
It is easy to forget about those bills that don’t come each month. Use the same “divide by 12” method to allocate money for annual and quarterly payments.
If you find yourself going over your budget each month, make sure that you are factoring in all of your little expenses. Even if you are spending just a little bit on something, it should be included in your budget. Raccoon Valley Bank is always available to help you with your budget. If we can help you make your finances more accurate, call or stop by one of our offices!