Are you responsible for obligations payable quarterly, semiannually or annually? If so, it’s best to divide the total by 12 to get the monthly amount. Then, store the funds away so you won’t be caught off-guard.
Examples of such expenses include homeowner association fees, alarm fees and subscription dues. If your HOA fee is $300 quarterly, $100 should automatically be set aside each month to take care of the expense when it arises.
5. Special events
Your lifelong friend has decided to tie the knot next month, or your child’s friend from school is having a birthday bash. Do you have the funds on hand to cover the travel costs or go out and purchase a gift?
If not, you may have to borrow to make it happen. Or, you can respectfully decline to attend.
6. Health insurance
Monthly premiums for health insurance can be expensive, and that’s before co-pays and deductibles.
To cover these costs, you can either go into debt and pay interest, or plan ahead and have money set aside.
7. Road trips
Do you have money set aside to cover an extra tank of gas if you need it? Make sure you do — you never know when you’ll need to make a quick trip to tend to important business or to check on a loved one.
8. Service calls
The water heater can suddenly die, or your furnace may go on the fritz. So make sure you tuck away money for these unpredictable failures.
Perhaps you stop by the bagel shop to grab a bite to eat because you’re running behind schedule. Or, you take a co-worker up on an offer to go out to lunch. If you don’t have the funds available for extras, another category of your budget will take a hit.
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