With the average household carrying over $15,000 in credit card debt, drawing up a budget can help you pay down your debt, boost savings and make sure that all of your living expenses are covered. However, budgeting is not an exact science. What may be an important line item for your neighbors may not even be on your radar. Here are some common items that can wreck your budget if you’ve forgotten them.
Cash to Pay for Tax Preparation
If your financial life is lean and you don’t have a healthy savings account, you may not remember to put aside money to pay to have your taxes prepared. Unless your tax situation is incredibly simple, this can cost you a lot. Having your taxes prepared professionally will allow you to take full advantages of write-offs for work expenses, such as your new work-dedicated laptop or your travel expenses to the work team-building retreat. If money is tight at tax time, you may be tempted to file your taxes yourself. Not only can this leave hundreds or thousands of dollars in deductions on the table, it can also trigger an audit that can rob you of hours of paid work. Set aside a small sum each month to pay for professional tax preparation and it will pay for itself in the end.
Your ‘Sick Fund’
For those whose employers offer paid sick time or short-term disability for illnesses and injuries, the temptation to ignore the possibility of sickness can be huge. This is especially true if you are generally healthy and only get the sniffles once a year. However, contracting a particularly bad strain of influenza or breaking your leg will snap you out of this mindset in a hurry. Even if your salary is still being paid, you’re going to need extra money for doctor’s office or emergency room visits, the copays for all your supplies and medications, alternative transportation if you can’t drive and the cost of everything your employer usually provides, such as lunches or coffees. All of this can add up quickly. Sock away a small amount each paycheck. You will be so glad you did when bronchitis comes to call or you’re involved in an incapacitating accident.
Wildcard Investing Money
Wildcard investing is when you just so happen to have the money available to score a sweet deal on something you can use to make even more money. For example, if you already own two apartment houses in a nice area and an attractive, low-priced third goes up for sale, having the money in the bank to put in an offer immediately could net you a handsome profit over the years. On a smaller scale, having the money to grab the supplies for making the yearly raffle baskets for your fundraiser six months ahead of time can make you even more cash for your cause. Investments, whether large or small, can present themselves at any time.
Drawing up a budget that is right for you can be a challenge. By considering these few line items, you can prepare for your future with confidence!
