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Small expenses that are ruining your budget and how to handle them

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By: tiarajoseph11
on 27th Jan,2016

Do you want to manage the small expenses that are affecting your monthly budget? Let’s check it how to do it and when.

Maybe you are a saving-freak who loves to save for each and every purpose. Because of this nature, you have gathered a pretty good emergency fund with six months’ worth of living and other expenses. Maybe you haven’t skipped any of the monthly bills and reduced your daily budget in half. MANY CONGRATULATIONS! You've perfectly handled your finances.

However, sometimes even the best of the best savers can fail to manage their money. Often things become a little bit complicated for us. If we look closely, we’ll find several expenses and costs which have a negative impact on our budget, but we normally ignore them. Here are some potentially overlooked costs that'll ruin your budget:

1. Pet care

I can recall it from my experience. There are many, little things you'll have to pay for, like food, toys, heartworm and flea preventative vaccines, day care visits, emergency care, etc. You can easily budget things like food and regular medication costs, but you might need to look for the rest of the pet-oriented expenses. Later, these small expenses may be considered as one of the reasons for small debts. So, spend your money wisely and save accordingly.

2. Irregular expenses

Do you have to pay the car insurance twice a year? Or once per quarter? Expenses that occur at unusual times throughout the year can ruin your budget. It's your duty to note down the due dates of such payments. You may use a calendar or set an alarm on your cell phone. Start saving a small amount per month from your income. This way, you can make a habit of saving extra amount from your daily budget and pay them at the right time.

3. Special occasions

I spent $1000 for four weddings last year, and that money came from my health care fund. After that, there were 5 birthday gifts, 4 bachelor parties, 5 wedding gifts, and 5 travel expenses that I met from my household budget. So, as a result, I fell short of money for my household expenses for a couple of times. So, if you want to avoid this, make sure to set up a separate fund for occasions like birthdays, weddings, baby shower presents, reunion dinners, etc.

4. Extracurricular events

Do you hesitate when you come to know that your kid needs a new bike for the bike racing tournament? Or did it make you scared that your daughter wants a new dress for the coming fashion parade in the school event? Dance lessons, boy scouts, baseball tournament – all such activities are a part of your kid's life. These events and your little ones also require a minimum investment each and every time. And, if you didn't plan out how to manage them, then do it as soon as possible.

In this case, your best buddy would be your calender. Mark those events 2 or 3 months advance, and set aside a few dollars each month for them. By this way, you can gather a handsome green bundle ready before the events.

5. Utility bills

In scorching summer, we need air conditioner more than anything else. So, cooling expenses become quite high these days. Similarly, in a cold winter, heating expenses are higher than other times. So, these costs are very difficult to understand these days. You need to plan your budget ahead of time and you must increase your budget to bubble up the emergency fund a bit more than usual. This way, you can carry out those monthly electricity bills.

6. Transportation

If you live in a city and are maintaining your personal car, then you can easily avail public transports to reduce unwanted gas and auto costs. Traveling by buses, trains, and subways are much cost-saving and eco-friendly options than using your own car. There's no need for you to pay extra money towards gas, repair works, and maintenance.

These are the few reasons why sometimes we spent more, in spite of being a wise saver. But, if we learn some cool ways to manage these sudden costs, way before they come, then we can surely be able to save much more than before.

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