Does your budget never seem to balance the way it should? Are you constantly digging into the savings to make ends meet?If you find that your budget isn’t doing the job, then it’s time to take a good look at essential components you might be missing or you have not allowed sufficiently for. Some of the biggest budget blunders are . . . . . .1. Failure to plan for inevitable expensesWe all have irregular expenses that we naively refer to as “unexpected.” Come on, is that flat tire really unexpected? Don’t you secretly know that these things happen?
If you have, you probably didn’t own it long enough. The solution; Start counting on the car breaking down instead of hoping it doesn’t! The car isn’t the only area we slight in the budget. Do you find yourself hoping and praying that the hot water heater, washer, dryer, or some other major appliance doesn’t need to be repaired or, worse yet, replaced.Home maintenance is always a factor in our finances. Even if you rent, you probably have some home related expenses waiting to creep up on you.These are just a couple examples of variable expenses that we often overlook.
Property, Auto, Health and Life Insurance if not paid on a monthly schedule.Even if you do pay monthly, you should try to save for a lump payment if at all possible. Most companies charge up to a $3 fee for monthly payment options. It doesn’t sound like a lot but, over a years time it’s $36 you won’t be investing in their cause. I say, it’s always best to invest in yourself. Don’t you agree? Put the $36 in your savings!Taxes - Property, Federal, and State - If you know you will have to pay Uncle Sam, prepare for it. If you value your home or other property investment, prepare for the costs.
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