A budget is a powerful tool for achieving financial independence. It’s an opportunity to ensure you’re spending only the cash you can afford each month. Plus, you can use your plan to improve your chances of reaching your goals for things like savings and investments. The only problem is that building a budget means considering all of your expenses – including the irregular ones. Sure, you’ve figured out how much you typically need to spend on things like electricity, broadband, food, and your living costs, but what about the birthday presents and last-minute bills that only appear every once in a while? Today, we’re going to offer some quick tips on how you can manage your irregular expenses and stop them from taking over your budget.
The first step is figuring out what kind of irregular costs you need to work with. The best way to do this is to go through your last year of bills, as well as your calendar information. Think about anything that you might not pay for every month, including vet bills, haircuts, and even vehicle expenses, depending on when you choose to pay your bills. Don’t forget that gifts often make up a significant part of your budget too. Making sure you know what you’re going to spend on things like birthdays and mother’s days each year is a great way to keep costs under control in your budget.
Once you’ve identified all of the less common costs in your routine, add everything up for a basic idea of how much extra money you need each month. For instance, you might decide that you want to have $500 ready each year for any additional bills that don’t come out with your standard budget expenses. From there, you can decide how much cash you want to put away from your income each month into this irregular fund.
With proper planning, you can even find ways to cut the costs of your fewer common expenses too. For instance, you might discover that saving and buying all of your insurance for the year in one go will save you more money than paying it for it every month. You might also think about signing up for subscriptions so you can forget about spending a fortune on gifts.
With a flower subscription you can arrange to have flowers delivered to the people in your life every month for any occasion. All you need to do is pick your BloomsyBox plan and choose the kind of gifts that are right for you. The flowers are all sustainably sourced, so you don’t have to worry about harming the environment. Plus, you get an insight into the expense you’re paying each month so there are no hidden costs to come and mess with your budget. At the end of each year, go back through your irregular and regular expenses and ask yourself whether it’s time to update your plan. Remember that great budgeting relies on your ability to be flexible when aspects of your life change.