But only base your budget on your monthly bills and grocery costs and you may be left wondering why your budget never works out. That’s because you’re forgetting incidentals. You know, those unexpected expenses that crop up every month that you never seem to plan for. Learn the seven common categories that people often leave out of their budgets. If you eat out even once a month, you need to include this item in your budget. Breaking down where your food money is going will give you more control and motivation to limit your spending in these categories. You don’t usually budget for these because the spending amount is small, but it can add up quickly if you are doing it on a daily basis. You should have an entertainment category that will allow you to spend time doing the things that help you to relax, though you may need to cut back to one or two nights out a month and look for less expensive alternatives. Leaving clothing out of your budget means that needing a new pair of shoes, or new pants may throw your entire budget out of whack. Budget a little bit each month and allow the balance to grow so you can cover the items you need when you need them. One easy way to plan for these items is to add up the total you paid in the last year and then divide it by twelve. Set aside this amount each month so you will have money to cover the upcoming bills. These expenses can add up quickly and make it difficult to pay for them. You can set up sinking funds for some expenses like car repairs, and budget money to put toward an emergency fund to cover these expenses. You can also use your emergency fund to cover these expenses. Updated by Rachel Morgan Cautero.
