Effectively building wealth isn’t simply about making wise investments, it also hinges on responsibly managing your income. While some of the smaller dollar amounts we’re talking about may seem trivial in the grand scheme of things, when compounded over years, they are considerable. When considering creating your budget, what are some items many of our clients don’t account for?
For many, their home and vehicles are their most valuable assets. Yet many people don’t account for inevitable maintenance expenses on either asset. The time to start saving for a new roof is not when you notice a portion of it is caving in, but long before. Vehicles maintenance costs should not be scoffed at either, as they can quickly tally in the thousands.
While you may not have a wedding reception or a big birthday trip for your friend on the calendar right now, it can’t hurt to carve out some funds for special occasions. Nothing strips the joy from fully enjoying a wedding reception than considering how much debt you’ve accrued over the weekend.
When looking over your bank statements, there are likely some months in which you’ll notice spikes in your spending. If any of that can be attributed to seasonal expenses, like the kids going back to school or costly
landscaping each season, try to budget for it so that you’re not caught by surprise.
The examples we’ve shared shouldn’t be all of the items that make the cut on your budget, they are simply a few points we wanted to highlight. Having a realistic budget that accounts for the unexpected will keep you from panicking when the unexpected comes up while supporting your long-term wealth building goals.