One of the most important aspects of staying on budget is planning your expenses accurately. We examine a few items that always seem to go over budget, so that you can plan for them in the future and stay on track financially.
Typically, when moving to a new home, most people will simply budget for the cost to hire movers. A few additional expenses should be considered as well. The moving company will typically mark up the price of the boxes, so it might be wise to buy them from the hardware store. To avoid any surprises, you should also find out if you are going to get your full security deposit back from your previous landlord. Will you need assistance reassembling any furniture? You might also need to hire someone to put up your curtains again. You should also consider the fact that you might have to buy new cleaning supplies, and will probably have to eat out for the first few days in your new home. Lastly, you might have to pay charges to connect your electricity and Internet in your new home.
Vacations are notorious for going over budget. While a family vacation is never cheap, it is important to budget appropriately or you might end up accumulating a huge credit card debt that you will spend a whole year paying off. Hotels and airline tickets are the obvious, and most costly, items you need to budget for. However, these are not the items that lead most people to go over budget. Rather, it is unaccounted for costs such as visa fees, hotel taxes, eating out, transportation, souvenirs and gifts. Before you know it, these items can add up to the same amount as your hotel stay, so it is important to do some research beforehand and have a figure in mind as to what you can afford to spend.
One of the biggest mistakes you can make is to pay for a vacation with your credit card. While taking advantage of a rewards program such as cashback cards will help you save some money, the high interest rate will quickly start adding up. So be realistic with yourself, if you are set on taking an expensive vacation that you can’t afford to pay for with your savings; then perhaps taking a personal loan beforehand to pay for it is a better idea than using your credit card.