You know how to prepare your monthly budget. Apparently, that is just one slice of the entire “Achieving Your Financial Freedom” pie. There are several things you need to do such as investing your money and setting up emergency or retirement funds. Nonetheless, it all starts with proper budgeting.
You might ask: how can you strictly stick to your budget when there are such things called “budget killers?” Assuming these budget killers are inevitable, can you do something to make sure that you won’t go overboard?
First, find out what these budget killers are then read on to learn how you can preserve your budget:
The Budget Killers
1) Special Events – This is the number budget killer. Every year, someone in the family will celebrate birthdays, where you are required to send something. Aside from that, there are anniversary, graduation, fiesta, Christmas, and other special occasions where you have to send money to accommodate the expenses. There is also an unwritten rule to send something expensive, especially if you are unable to go home on the specified dates.
2) Medical Expense – You don’t want that to happen, but someone in the family might be sick or has to be rushed to the hospital. You might even be asked to contribute for your extended family’s hospitalization and medical bills since “you are earning in dollars.”
3) Repairs and Maintenance – Roof leaking, car not starting, busted pipes, and the list goes on. This type of expense may not just be unexpected, but also recurring, especially if you didn’t address the issue immediately and install solutions permanently.
4) Utility Expense – Electricity, water, cable TV, phone, and mobile Internet – these are just some of the many expenses you need to pay every month. Even if these expenses are to be paid monthly, the amount varies since surely, your family doesn’t consume them in a fixed basis.
Here’s the good news: even if there are budget killers, you can do something to still protect your budget and not compromise financial standing. These are some of the things you can do:
- Be wise with your spending. You might be tempted to splurge on items you can’t buy at home. While this may not hurt you financially – yet – there will always be a possibility that you will need those funds for more important things. The key is to be wise with your spending. Buy the basics and save us much as you can before it’s too late.
- It’s okay to tweak your budget. Don’t put budget in a negative light. The purpose of budget is to guide you with your spending, so you can maximize your monthly income. It shouldn’t restrict you to the point of deprivation. Therefore, always leave room for adjustments. Add a few more dollars for each expense instead of declaring the exact amount. Also, review your budget. You might have expenses before that you weren’t able to include when you were first making your budget, so include that.
- Make it a habit to anticipate expenses. This will work for special events. Make sure to plan ahead if you intend to give something on special occasions to prevent you from resorting to loans.
- Think of the future. You will never know what will happen in the future. Still, make sure to anticipate. Set up an emergency fund, save as much as you can, and avoid unnecessary purchases.
There will always be budget killers and sudden expenses, so make sure you leave room for that in your budget. More importantly, save, save, and save. It will go a long way.