Thursday, February 25, 2021


Don’t Forget To Include These Financial Commitments In Your Personal Budget.

October 30, 2018 by  
Filed under Money/Business, Weekly Columns

(Akiit.comFinancial experts always encourage people to live on a budget these days. By living on a budget, you will know exactly what is leaving your account and how much money you will need through the month or indeed the year. However, some people still fail to keep a check on their finances even with a solid budget structure in place. Why is this? It’s largely due to failing to account for all the bills that could come out on any given month. Let’s look at the costs people often forget and why they are important to remember.

Charity Donations

If your income is at a sizeable level, you probably will be donating to charity on a regular basis. You might decide to donate to a cause like Cane Bay Partners, providing support to those impacted by the deadly and horrific tropical hurricanes that have rocked the Caribbean in recent months. Alternatively, you might be choosing to donate to the homeless on the street who need a place to stay through the winter. This could be one-off donations, or it could be a direct debit that leaves your account each month and depending on your income these donations can be quite sizeable. It’s not uncommon for some people to donate hundreds to charity every year. As such, this should be factored into your budget so you are not left with less than you’d expect to be at the end of any given months.

Unexpected Costs

While this sounds a little vague, we are talking specifically about large financial costs that could hit you without warning. For instance, your heating system might break down. If this does occur and you are not renting, you will need to pay for a replacement. This can be a bill in the low thousands, and it’s the way you should always have a solid level of savings account. A savings account like this should remain untouched except in the case of big emergencies where cash is immediately needed. The heating in your home is just one example. It could be a roof repair or the money needed to get your car back on the road.

Insurance

Do not make the mistake of failing to factor insurance into your bills. Insurance is expensive, but it’s worth having for those rainy days when you need it the most. Many people cast insurance aside as something you will only require when the worst happens. They fail to realize of course that the worst will always occur when you do not plan for it.

Long-Term Financial Planning

Finally, long-term financial planning should be a huge part of your typical budget. You need to make sure you are saving up for costs that will impact you in the future rather than right now. You can easily chip away at costs like college tuition, home buying, and retirement if you make sure that you save a little of your budget for these expenses each month right now.

We hope this helps you make sure you aren’t missing any key costs from your own personal budget.

Staff Writer; John Adams


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