From the course: Budgeting in Real Life
How non-monthly expenses throw off your budget
From the course: Budgeting in Real Life
How non-monthly expenses throw off your budget
- Have you ever thought to yourself, "My budget would work in a normal month, but I haven't had a normal month in a really long time." Well, you're not alone. Random expenses can be super frustrating, especially when you're trying to stay on budget. They can make you feel like budgeting is hopeless and that getting on track is impossible. But you can change that, and it starts with a bit of detective work. What are these surprise expenses and where are they coming from? After 15 years working with clients, I found that most random or surprise expenses really aren't actually as random as you might think. It's just that they don't occur monthly, and they often look a little bit different each time. For example, common non-monthly culprits are things like annual insurance premiums, property tax bills, new tires and other car repairs, medical expenses, travel and vacations, gifts, and events like weddings, baby showers and graduations. It's been several years since I was in that everyone seems to be getting married phase, which was then followed up by the everyone's having babies phase. But I remember feeling like, although I didn't know exactly who would be getting married next summer, I knew I'd be going to at least three weddings. So what non-monthly expenses tend to come up for you? Do you have a partner or kids whose unplanned expenses creep up often? Don't forget about summer camps and extracurriculars, too. Spend a few minutes to jot them down, including how often they happen in a year, and how much they cost. By actually planning for these so-called unexpected monthly costs, you can reduce your stress and stay on budget.
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