Ahhh, the b-word. No, not that one. Budgeting. It can sometimes feel tedious to budget for every dollar but really, no matter your income level or financial status, you need a budget! Having a budget makes every dollar work harder for you.
Obviously everyone knows that you have to list out your bills when you make a budget: rent/mortgage, gas, electricity, cell phone.
But there are 4 budget categories that you might be forgetting! Over the years, as my husband and I have written numerous budgets, some of these we forgot about too! No fear, just be sure to add in these categories when planning your monthly finances.
1. Holidays
As Dave Ramsey says, Christmas is on December 25th every year. It can't sneak up on you--we know it's coming! :) Likewise, my kids' birthdays, and our anniversary all fall on the same day every year. Sure Easter and Thanksgiving kind of rotate around but... close enough.
Make a list of who you buy for and about how much you want to spend. Add it all up, divide by 12 and then save that much every single month so that when the birthdays and holidays roll around, you aren't feeling pressured to go into debt.
You can put the money in a cash envelope and keep it at home, make a separate sub account for it with your bank, or open an entirely different holiday savings account (many banks and credit unions offer accounts specifically for holiday savings!)
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2. Car Maintenance
I saved up money from my teaching job and bought myself a gently used vehicle and was able to pay cash. We don't have a car loan but we do have money taken out of every check and put in savings for our next vehicle. However, cars need their oil changes, tires rotated, sometimes things break or need repaired.
If your car needs a $200 repair to be functional, do you know how you'll pay for it? Try to keep a bit of money set aside so you don't have to go into debt at the auto shop!
3. Unexpected Gifts
Yes, we plan for Christmas and birthdays (see #1 above). But you know what happens sometimes? You have the perfect amount budgeted for the holidays you will celebrate that year and then BAM 3 coworkers are pregnant and you need 3 baby shower gifts. A cousin gets married and you need a wedding gift. Uncle Sal passes away and you need to send flowers.
Be sure to have a bit of money stashed away for those unexpected gift needs that arise during the year.
4. Giving
Sadly, when you search "Budgets" on Pinterest or "budget categories", many of them have no line item for giving. Yet there is such a great need in our world.
25% of children in OUR country, the United States, are food insecure. As I write this we have a 14% unemployment rate. The Covid19 pandemic has made people sick, forced businesses to change how they operate, and cost many people their lives or their jobs.
The amount you choose to give regularly is up to you. For our family, we follow the tithing guideline of a 10% minimum.
You can give to your local church and/or many places that could benefit from your monthly donation. Here are just a few:
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There you have the 4 budget categories you may have forgotten: holidays, car maintenance, unexpected gifts, and giving. Can you think of any others that often escape our minds when writing that first budget? If so, leave a comment to let me know!
[Related: 7 Things We Don't Mind Spending Money On]
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