If you are trying to save money and secure your finances, a good budget is the best place to start. By tracking all of the money that you spend, you can easily identify areas where you can cut back, and always make sure that you don’t overspend.
However, so many people find that they write a budget and stick to it, but they still end up overspending somehow. This usually happens because there are things that you have missed out of the budget. These forgotten budget items can cause you a lot of financial trouble if you aren’t careful, so it’s important that you make sure you have accounted for every single penny that you spend. These are some of the most common things that people forget to include.
Small Food Purchases
Hopefully, you’ve budgeted for your weekly food shop, and eating out at restaurants should be accounted for as well. But a lot of people forget about the small food purchases that they make on a day to day basis. Things like a sandwich or a coffee while you are out at work, or a quick snack on the way home, for example. Sometimes, it might be trips to the shop to pick up things that you forgot to buy. They don’t always register and they get missed off the budget because the spend is usually small. But when you are doing it every day, it quickly adds up.
If you can cut these small purchases out, your budget will be a lot easier to manage, and there are some simple ways to do that. Firstly, you need to learn to cook lunches and take them to work with you because you’ll save a lot of money. Secondly, make sure that you take a list with you when you shop so you get everything you need and you aren’t going out in the week to make small purchases all the time.
Car Insurance And Tax
This one often gets missed out because you only need to pay it once a year, but it is expensive and it needs to be factored into your budget. The cost of Car tax insurance varies a lot depending on the car and the driver, but it can easily exceed £1000. If you are not planning for it, that can really throw your monthly budget off course, which is why you should be putting money aside throughout the year to pay for it.
Monthly subscriptions are becoming more popular and you can get them for everything from TV and music to food and wine. But they can also ruin your budget if you aren’t careful.
Subscription creep is a term used to describe the hidden impact that these services have on your budget. They often go unnoticed because the cost is small, but when you have multiple subscriptions, they quickly add up. People forget about it because it just comes out of your bank without you noticing, but it could be eating into your budget. It may be worth reviewing all of the subscriptions that you have and seeing if there is a way to cut back on some of them.
If you don’t tackle these forgotten expenses, your budget won’t add up and you will find yourself in financial trouble.
This is a collaborative post.