Budgeting is supposed to take the guesswork out of spending money. By following a budget and developing a financial routine, individuals should –– in theory –– be able to save capital on a monthly basis. However, life has a funny way of ruining even the best-laid financial plans. So often, the best budgets are an exercise in expecting the unexpected. On that note, today we’ll share four surprising (yet somehow common) expenses that could very well derail your budget. Mark them down today so you can account for them moving forward:
Medical Bills
Accidents happen. In fact, they happen all the time. No matter how careful you are, everyone should have a backup plan for dealing with unexpected medical expenses. Keep in mind also that some medical conditions could worsen over time if you don’t take care of them now. Take for instance, bunions. If you don’t monitor your foot health closely, you could end up developing painful bunions and asking your doctor questions like, “what is a bunionectomy?” before you can finally resolve the problem. In such a scenario, you may even wonder what you could’ve done differently. The answer, of course, is to budget in advance for medical bills and to secure quality insurance now.
Failed Investments
Not every investment delivers a return, and young professionals should learn this lesson ASAP. Don’t ever count on an investment providing money you really need and always prepare for losing money on an investment. This might seem like a pessimistic view, but it will ensure that you’re never caught cold when a “sure thing” goes belly-up.
Repairs/Upgrades
Over time, sinks clog. Transmissions break. Computers get viruses. You may not always be able to predict when an essential product you own will break, but you can be sure that even the best-made items will eventually show wear and tear. Nothing outlasts time. Rather than playing this guessing game, set aside some extra money for handling repairs or upgrades on an as-needed basis. Also, be sure to handle these repairs/upgrades as soon as possible. Waiting to deal with a seemingly small issue –– like cracks in your basement walls –– can lead to a huge issue –– like serious foundation damage.
Increased Rates
It’s important to pay attention to your monthly statements and emails for many reasons. One of the benefits of doing this often is that you’ll have the ability to identify when a service begins to increase their rates. Streaming services, eclectic companies, and other businesses may begin to charge you more for certain membership fees or service rates. Don’t ignore these increases even if they seem “minimal” at first. A quality budget accounts for these sorts of expenses so you can build a better financial future for yourself and your family!
Nice article. In my opinion, you have some form of control over other expenses except medical bills. You can decide when to do upgrades or do without streaming services et. but you cant decide when or whether to fall sick. The solution like you mentioned is adequate medical insurance as this takes care of the situation. Thank you