5 Things We Forget To Budget For!

People find budgeting difficult as it is, neverminds wondering what we should be budgeting for. Although, it is an essential part of our lives and our finances. Overspending can be reduced and avoided when you use a budget, therefore, we should think about everything we could possibly use a budget to keep on top of everything necessary.

Subscriptions

Subscriptions are very popular. Whether it be a gym membership or even a Netflix subscription. Although, despite their popularity, they are easily forgotten about when it comes to working out a budget. This, unfortunately, can massively disrupt your finances depending on the number of subscriptions you have.

Hobbies

Factors like hobbies can be easily forgotten about as they are just a regular thing you do. Things like sports and clubs for children tend to be cheap, therefore it is likely you are paying using change every week or so. Therefore, when considering a budget, we tend to forget the smaller things which don’t directly come out of our bank accounts.

Clothing

Sometimes, we like to buy some new clothes for ourselves, but, for most people, it is not at the exact same time each month. Unless you are a shopaholic, clothing is something which you might miss out of your budget. We advise you to set aside a small amount so if you do spend any money on clothing, it isn’t disrupting your budget. If you do not use it, then you will have some money to either save or spend on something else that month.

Annual Payments

These are often forgotten as they are rare payments so they are not constantly on our minds. That means that you might not think to even add them into your budget. Annual payments are essential to include as they tend to be a lot larger than the average monthly payments. Meaning that if you forget to budget for these, you could find yourself in a worse financial situation.

Medical Costs

Medical insurance doesn’t cover everything. Prescriptions are the most common things which might throw you off track if you live in the UK. It’s difficult to predict the costs because you just don’t know when you are going to become ill. Similarly to shopping, you should leave a little extra amount to one side just in case you need to pay for anything like this.

 

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