Big or small, every purchase you made or transaction will require a certain amount of money. You probably will set a side a portion of your earnings to pay for these things on the foreseeable future . These are the things which are known to you and you commit to pay for it. To simply put, these are the things which you include in the budget.
On the other hand, there are purchases that were supposed to be known but would ultimately slip out of your mind, either deliberately or not. This is basically true for things that are not often needed. As a result, some of these unplanned purchases ruined the budget. Oftentimes, it took months to finally recover.
Sadly, there are things that must be put on hold to be able to get back to financial stability. Because whether you like it or not, it seems that there’s always another need to be met that doesn’t belong to the budget.
Luckily, haircut is not that expensive to ruin the whole budget. Also, it’s not everyday that you get a haircut and probably the most obvious reason why so many people forget to include it in the budget every time.
If you finally decided to get a haircut, make sure to set aside a small amount for your next one. And oh, be wary of unnecessary add-ons.
2. ID renewals
ID renewals would be the last thing on the mind of every normal person. This is because it only happens every few years and a visit to any government office brings exhaustion.
Maybe the reason people tend to forget this item is because not all IDs will expire on the same day much less on the same year.
Although not that expensive, it is entirely necessary. And sometimes, money is not really the issue. It’s the time you have to take off from work to process these transactions. Because along with ID renewals, there will be documents that needs updating.
Be a little systematic. List down all your ID cards and its corresponding expiration dates. Set a reminder or put your list on a visible part of your house. Some IDs you might even group and renew all together to save time.
3. Gadget replacements
Unlike other things here in the list, this is probably where people are happy to spend even though it is definitely expensive and sometimes wasn’t included in the budget at all.
If you don’t have an emergency fund, gadget replacements will probably hurt your budget for a while.
Even though people knew that gadgets will only last for several years, nobody seems to care for replacement budget. It perfectly make sense because you can never tell how much money you will be needing and how many years you will be using your current gadget. The accessories too!
Gadgets especially smartphones are now considered essential. To add injury to the wound, people would always choose to upgrade (not the other way around) with the latest models due to functionality.
Generally, people change gadgets on an average of 1 1/2 to 2 years. You might want to consider this time frame if you plan to upgrade in the near future.
4. Memorial donations
What’s strange about memorial donation is that, from a very young age people are accustomed to giving it whenever someone passed away.
Of course, nobody can tell when will a person die and so most of the time, the money that is donated comes somewhere from the budget.
There is no fix amount to be given. In most cultures, it is a common courtesy to honor one’s life through giving of condolences and money to the bereaved family. Prior to the death of the person, sometimes the bereaved family already lost a huge amount of money due to hospitalization. Giving any amount will surely bring comfort to the grieving family.
All throughout your lifetime, there will probably be celebrations of milestones, weddings, birthdays and etc.
Sometimes, family and friends will invite you to celebrate with them and it is a common courtesy to bring gifts when being invited.
If the event is totally unprecedented and the budget is tight, you can always politely decline.
However, there are events which might be already known to you or some might call a ‘tradition’. This is most true for family affairs. If as a family you always celebrate your father’s birthday and everyone is to bring a gift, don’t wait for the day and get alarmed where to get the budget for the gift. Set aside a certain amount as early as possible and you’re done!
6. Cooking utensils and kitchen appliances replacements
They say kitchen is the heart of every home. It certainly is the most utilized portion of every household. To make food preparation easy, a lot of things has to be purchased. Over the years, a lot of things have also broken.
Pots and pans, dinnerwares and silverwares will loose its luster over time. Cooking wares will soon have to be upgraded or replaced when broken.
These things are known to at least every homemakers but seems too trivial to even consider and to add to every day worries.
Interestingly, these things are considered not too expensive to be taken from an emergency fund but not too cheap to say that the monthly budget is not compromised.
To limit the frequency of replacing each appliances, buy and choose only high quality items which are made to last.
7. Air conditioning cleaning
To optimize it’s usage, air conditioning units are advised to be cleaned every four to six month. Otherwise, it will not be as efficient as it was supposed to be and yet your electric bill is still the same.
There is no alternative to go easy on this item. You can either start to include the maintaining of the unit to your budget or you can just open the window and forget air conditioning altogether.
There are various air conditioning cleaning services nowadays. Be sure to check their credibility to avoid prematurely damaging the appliances.
People living in Tokyo does not necessarily have to own a car. Their train system is so complex it can accommodate all routes and can cut travel time to a significant amount. People with no car are also spared from parking, insurance and maintenance costs.
Here in Philippines, commuting doesn’t always mean more savings. There will be times when it is extremely difficult to catch a bus or a jeepney due to large volume of commuters. Sometimes, due to tardiness too. Oops!
The only remaining option to arrive on time or go home early is to hire a taxi. However, taxi cost ten times more than a bus or a jeepney.
Oftentimes, commuters have to take the fair somewhere in their budget. Thus, compromising other things until the next payday comes.
If you are a commuter, save your budget by trying to consider days where traffic are so heavy and the volume of commuters are seem to triple. Days such as Fridays, paydays, heavy rains, holidays, days with local events (fiesta), etc.
9. Doctor’s check-up and medicines
More and more companies are offering their employees insurance coverage for hospitalization. Depending on the insurance company, some doctors and laboratory tests can be availed for free or will be covered by the insurance.
On the other hand, there are hospitalization bills that are not covered. Dental and laser surgery are the most common example of these services.
If you have just gotten out of the hospital, oftentimes, there will be after care instructions that you must adhere. Essential prescription medicines and vitamins are needed as you try to recover. This goes the same for check-ups and other minor out-patient services.
Surely inevitable and therefore people must practice saving a portion of their money for these minor sicknesses.
Albeit strange of a mindset, people are encouraged to be realistic regarding death and sicknesses (that may get frequent as they age). To minimize the damage, people are advised to eat healthy, exercise and get a lot of sleep.
10. Car maintenance and insurance
Just like in item number 7, people who owned a vehicle were expected to commit to a lifestyle of maintenance as long as they have the vehicle.
There will be tire replacements, change oil, insurance and even some upgrades. Mind you, these are not cheap but definitely essential to keep the vehicle in a good running condition for a very long time.
But why do people forget to include it in the budget? It took several years for some of the items to be replaced, yearly for insurance, every 10 kilometers for the change oil and so much more which does not happen in a regular interval.
Among other items in the list, people were more likely to prioritize car expenses despite it having the biggest fraction off the budget due to its importance and functionality.
Try to project your future expenses with your vehicle and determine how much you will set a side from your monthly budget to its maintenance. This way, you will not only be prepared, you will also keep yourself from having debts!
The things listed above can be agreed as necessary and essential to improve living conditions. There could be hundreds of items similar to these if you will just count them all in. The instances where people tend to forget to save money for these items are totally understandable due to the very nature of these things.
The frequency for these items to recur, spans from a few months to several years. Even the most diligent person who track their expenses would find it impossible to prepare for all the irregular living expenses. So what’s the key to these dilemma? Don’t forget, keep record and save!