• Home
  • Start Here
  • Blog
  • Free Resources
  • Shop My Filofax Store
  • Shop TBM
  • Courses

The Budget Mom

Real Women. Real Life. Real Finance

  • Home
  • Products
    • Live Rich Planner
    • Budget By Paycheck
  • Blog
  • FREE RESOURCES
  • COURSES
  • Shop my Filofax store
  • Shop TBM
MENUMENU
  • BUDGETING
        • Categories

        • Budgeting Basics
        • Budget Guides
        • Budget Tips
        • Budget Recaps & Overviews
        • We live in a society that emphasizes spending and budgeting based on income, but what if this isn’t the best mindset to truly build wealth?

          A Closer Look at Spending Based on Income Rather Than Net Worth

          Living on a budget can be as challenging as sticking to a diet or committing to a workout routine. Here are tips to avoid burnout so you can achieve your goals!

          How to Avoid Budget Burnout: 5 Tips to Stay the Course

          When creating a budget, most of us focus on tracking our expenses, but tracking your income is just as important. This includes knowing your starting balance.

          What is Your Starting Balance & Why Does It Matter for Your Budget?

  • SAVE MORE
        • Categories

        • Cut Expenses
        • Extra Income
        • Saving Tips
        • The true cost of a speeding ticket depends on your location, how fast you were driving, and any previous violations. Learn how much you can expect to pay after receiving a speeding ticket.

          Explained: The Surprising True Cost of a Speeding Ticket

          If you’re looking for ways to save, buying second-hand items might be a good idea. These 17 things are better to buy used instead of new.

          17 Things That Are Better to Buy Used Instead of New

          If you need to earn fast cash, selling household items online is the easiest way to do it. Here are 20 things in your home that you can sell right now.

          Need Cash Fast? 20 Things In Your Home You Can Sell Right Now

  • FRUGAL LIVING
        • Categories

        • Beauty & Health Tips
        • DIY
        • Family & Money
        • Food & Drink
        • Frugal Living 101
        • Household Tips
        • Holidays & Occasions
        • Kids & Money
        • Many people consider going to grad school but wonder if it’s worth the financial investment. Here are five questions you should ask yourself before committing to grad school.

          Should I Go to Grad School? 5 Things to Consider First

          It’s not too early to start helping your child build their financial future. If you want to help your child start investing, here are the steps you’ll take to get started.

          How Can My Child Start Investing?

          For many people, the holidays are a stressful and expensive time of year. Learn how to host a holiday dinner without blowing your budget this year.

          7 Steps to Hosting a Holiday Dinner on a Budget

  • DEBT & CREDIT
        • Categories

        • Credit Cards
        • Credit Report & Score
        • Debt Basics
        • Get Out of Debt
        • Loans, Etc.
        • It’s easy to swipe a credit card, but paying it off is an entirely different story. Here’s what you need to know about the true cost of buying on credit.

          Revealed: The Ugly Cost of Buying on Credit

          Should You Buy Your Leased Car?

          Collection accounts can be stressful, but you can bounce back. Learn how to handle collection accounts and improve your financial picture.

          Has Your Debt Been Sent to Collections? Here Are Your Options.

  • FINANCE 101
        • Categories

        • Financial Planning
        • Investing
        • Retirement
        • Tax Tips
        • When it comes to financial boundaries, the consequences of “crossing the line” aren’t as obvious. Adjusting your financial mindset can change everything.

          The Financial Boundaries Mindset that Will Change Your Life

          Many people get pet insurance insurance so they won’t get stuck paying thousands of dollars for an unexpected vet bill. But is pet insurance really worth it?

          Is Pet Insurance Worth It? Here’s What You Need to Know

          Taking the leap into homeownership is a daunting task, but knowing what to look for can help protect you in the long-run. Here are some tips to consider!

          What to Look for When Buying Your First House

8 Important Things That Are Missing from Your Budget

July 11, 2018
Budgeting Basics

Share20
Pin217
Share
Tweet
Email
237 Shares
  • Bio
  • Facebook
  • Pinterest
  • Latest Posts
Kumiko Ehrmantraut

Kumiko Ehrmantraut

Some links below are from our sponsors. Here's how we make money.
Kumiko Ehrmantraut
Kumiko Ehrmantraut

Kumiko Ehrmantraut

Kumiko Ehrmantraut

Latest posts by Kumiko Ehrmantraut (see all)

  • The Financial Boundaries Mindset that Will Change Your Life - April 8, 2021

It's easy to overlook where your money actually goes. Make sure you are including these ten essential items in your budget!

It happens all the time. You are a couple months into your new budget, and then all of sudden you've blown it. You're sitting there wondering where your money went, and how you didn't see this coming.

You need to set yourself up for success from the start, and that means making sure you are including these items in your budget!

GIFTS

Budgeting is all about planning. It's vital that you plan ahead and include gift giving in your budget. You need to be aware of upcoming birthdays, holidays and special occasions. They happen like clockwork, and you need to have money set aside to cover the costs. No, I don't mean pulling the money out of savings!

How much did you spend on Christmas gifts last year? Are there birthdays that you spend money on time and time again? To determine the amount you need to set aside monthly, you need to investigate your spending habits from the previous year.

To figure out reoccurring birthdays, get a good idea of how much you spent on holiday gifts last year, and total the amount. Then, divide the total paid by 12 to get a monthly budget amount.

  • Read: How to Make a Realistic Budget That Actually Works

CLOTHES

If you have children, this is an essential item that needs to be included in your budget. They wear an outfit once, and then they outgrow it by the next week. Seasons also change, and they will need new clothes for school. That doesn't mean you can forget about yourself. You need to account for necessities like undergarments and socks in your budget.

When it comes to purchasing clothes in bulk (like back-to-school clothes) look at your total spending by going through old financial statements for the past 12 to 18 months. That will give you a good idea of how much you spend annually, and you can spread the cost over 12 months. You will deposit this amount in your “clothing” cash envelope.

HOME MAINTENANCE

Owning a home can be costly. Things break and need to be replaced. The lawn needs upkeep and flowers need to be replanted. Are you budgeting monthly for these expenses? Keep in mind, even if you don't own a home, you still need to be putting money aside monthly! I live in an apartment, and I know all too well about needing money for house maintenance (like the new vacuum I bought last week). Here are some common home expenses:

  • Insurance (home or renters)
  • Taxes
  • Furnishings or window treatments (even in an apartment you need to have privacy)
  • Utilities
  • Maintenance & repair (like my new vacuum)
  • Pest Control
  • Garden & lawn care
  • Sewer
  • Trash Service
  • There are many different ways to budget for maintaining your home. Some people swear by the 1% rule, which suggests that one percent of the purchase price of your home should be set aside each year for ongoing maintenance.

I am not a fan of this method. Each home is unique, the market when you bought your home makes a difference, and there are many different independent variables. The best way to budget for home maintenance is by taking inventory of the things that might need to be replaced and dividing their value by 12. That's the amount you need to save each year. How much did you spend on lawn care last year? You need to set money aside monthly to cover those expense. Consider CIT Bank's Savings Builder account for your maintenance fund.

My rule of thumb. Save enough money to make you feel secure.

If you know your roof is old and needs to be replaced in a couple of years, get an estimate and start saving money monthly. Worried about an appliance breaking? Set enough money aside that allows you to sleep better at night.

MEDICAL EXPENSES

Budgeting for your monthly premiums isn't enough. There are always items that aren't covered by insurance. Copays and deductibles can add up and it can put a strain on your budget if you aren't prepared. Make sure you are adding regular dental and doctor visits to your calendar and plan accordingly.

  • Read: How to Budget Your Income and Expenses

MEMBERSHIPS AND SUBSCRIPTIONS

If you are a member of Amazon Prime or Costco, you have a yearly membership fee you need to plan for. Save monthly for these expenses by taking the annual membership fees, and dividing by 12. Don't forget to include things like magazine subscriptions (hello, Magnolia Journal), gym memberships, or box services (food services or health and beauty subscriptions).

ENTERTAINMENT MONEY

Just because you are creating a budget doesn't mean you can't have fun while doing it. If you completely deprive yourself while trying to spend less and save more, you will fail. The truth is, you can still do the things that you enjoy like going to the movies, enjoying a date night, or traveling – you just have to plan for it.

This is where you get to decide what's important to you. Consider setting some money aside each month so you can do the things that matter, without going into debt or busting your budget.

  • Read: 5 Critical Questions You Need to Ask Yourself Before Creating a Budget

PET SUPPLIES

Pets are part of the family, at least in my home they are. We are in love with our guinea pig, Penny, but she is expensive. She's only the size of my hand, but she eats like she's the size of a dump truck. Make sure you have food, toys, and grooming included in your month pet costs. It's easier to keep track of your pet expenses if it has its own category. This also makes it easier to see if you can afford to add a new furry friend to your family.

HAIRCUTS & BEAUTY

If you are like me, quality is always more important than price in this category. I am willing to spend a little more for my hair appointments, as long as I know it gets done the way I want it to and the products they use are high quality. I get my hair done about every 6 months, which is fewer than most. I do have highlights, but one way I save money is by keeping my highlights close to my regular hair color. This allows me to go longer in between hair appointments without worrying about grow out.

How often do you get these services done? I spend about $100 every time I go to the salon, which is about $200 every year. I take that amount and divide by 12. Sometimes, I am not sure when I need to go in, so I will budget my money a couple of months prior. For example, I usually know I need to go to the salon a couple of months ahead, so I will set aside $50 every month for two months to cover my hair appointment.

Don't forget to include things like nail polish, massages, or special beauty products.

  • Read: Personal Budget Categories (Organizing Your Budget) 
Share20
Pin217
Share
Tweet
Email
237 Shares

Filed Under: Budgeting Basics Tagged With: BUDGET CATEGORIES, BUDGETING

Previous article:
« Credit Card Disputes: Understanding Your Rights
Next article:
Should You Cancel Your Credit Card After Paying It Off? »

Comments

  1. Ashley says

    July 22, 2018 at 9:45 pm

    These are really great ideas! Thanks for sharing:)

Trackbacks

  1. How to Start Using the Cash Envelope Method | The Budget Mom says:
    July 23, 2018 at 8:51 am

    […] 8 Important Things That Are Missing from Your Budget […]

Hello, I'm Kumiko, but everyone just calls me Miko. Welcome to my blog, The Budget Mom. I am an Accredited Financial Counselor® , and mom to a rambunctious boy. Come along with me as I strive to live a life I love on a budget that I can afford. Read more about me.

RECENT YOUTUBE VIDEO

Free Resource Library

Recent Posts

  • The Financial Boundaries Mindset that Will Change Your Life
  • Is Pet Insurance Worth It? Here’s What You Need to Know
  • A Closer Look at Spending Based on Income Rather Than Net Worth
  • What to Look for When Buying Your First House
  • “Do I Have Enough” Is A Horrible Mask

Blog Categories

Amazon Associates Disclosure

The Budget Mom, LLC is a participant in the Amazon Services LLC Associates Program, an affiliate advertising program designed to provide a means for sites to earn advertising fees by advertising and linking to amazon.com.

About

  • Home
  • ABOUT TBM
  • Contact
  • Start Here

Important

  • DISCLAIMER
  • PRIVACY POLICY
  • Subscribe

Favorites

  • YouTube
  • Blog
  • Live Rich Planner
  • Budget by Paycheck

Start With My Friday Newsletter

Copyright ©2021, The Budget Mom®
This website contains affiliate links, which means that if you click on a product link, I may receive a commission. This website is a participant in the amazon services llc associates program, an affiliate advertising program where I earn advertising fees by linking to amazon.com.