Home
>
Personal Finance
>
Developing a budget? Watch out for Those Budget-Bursting Gremlins

Developing a budget? Watch out for Those Budget-Bursting Gremlins

If you've developed a household budget to get your spending back in line or to just reduce stress, good for you! Creating and sticking to a budget isn't easy by all means. But it represents the best way by far to manage your finances so you can relax and worry about other things.

A budget can also be a very useful tool for ending financial arguments -- assuming that you and your spouse agree how much to allocate for each of the categories in your budget.

The big categories are usually the easy ones. You know how much you pay for rent or your mortgage. Ditto other items such as your car payment(s), heating bill, phone bill and the like.

These are all fixed expenses. In other words, they are expenses that cannot be easily cut. They can be reduced but not without a major effort. For example, you could sell your home and buy one that requires a monthly mortgage payment.

However, many of the other items in your budget are discretionary expenses. In other words, they are expenses you can control and cut. This category includes items such as clothing, entertainment, insurance (yes, you can cut the cost of your car and health insurance), cable or satellite and groceries.

Some of these categories can also become budget busters or what I call budget gremlins if you are not really careful.

One of the biggest of these is entertainment ? which should include the cost of eating out. You may find there's only a little money left over for entertainment. Yet, it's very easy to overspend by "rewarding" yourself after a hard week or month by taking your family out to eat at an expensive restaurant. Or by treating you and your spouse to a night on the town, complete with a babysitter for the kids. If you're not careful, you can lose track of these spur-of-the-minute expenses. Come the end of the month, you might wake up and realize that these little "rewards" have cost you $100, $150 or even more over budget.

Another category that can be a budget gremlin is clothing. In the first place, it's a difficult budget category as it is next to impossible to forecast with complete accuracy what your family will need in the way of clothing over the next 12 months. Even if you budget very accurately, there is always that great suit or dress that's on sale, or that really neat athletic jacket your son is begging for. Again, you need to be very careful or you may find that what you spent on clothing last month was actually50% more than you had budgeted.

Here's another potential budget gremlin. If you have a pet, make sure you budget for pet care and supplies. Just one trip to the vet with your furry friend can cost big dollars. And what about gifts? This is also a category where costs can get away from you unless you watch them closely.

Finally, for a budget to work, you and your spouse need to have some "miscellaneous" money or money that doesn't have to be accounted for each month. For example, you might allocate $50 or $100 monthly for each of you. That way, you could each "splurge" on something without feeling guilty because you're breaking the budget or taking money away from other, more important things.

Creating and sticking to a budget isn't easy, but it can be a real life and marriage saver.

For FREE help with debt and credit, subscribe today to Douglas Hanna's free email newsletter "8 Simple Steps to Debt Relief" at http://www.all-in-one-info.com

Rolling Meadows Cadillac Escalade rental .. Lockport Chicago limo O’Hare

In The News:

There are a number of features with AirPods you may or may not know about to take your listening experience to the next level. Kurt the CyberGuy explains.

These 35 Chrome extensions have privacy and security concerns. Tech expert Kurt “CyberGuy" Knutsson says to delete them now.

Tech expert Kurt “CyberGuy" Knutsson says 329,000 mph fusion rocket promises to be fast, disruptive and enable deep-space missions.

Stay up to date on the latest AI technology advancements and learn about the challenges and opportunities AI presents now and for the future.

Tech expert Kurt “CyberGuy" Knutsson says a new autonomous AI is a game changer that also raises privacy risks. Is your data safe?

Tech expert Kurt “CyberGuy" Knutsson says robots and drones are revolutionizing fruit farming with faster picking and smarter handling.

Landmark Admin revises May 2024 cyberattack scope to show twice as many people were affected. Kurt “CyberGuy" Knutsson gives tips to help stay safe from an insurance data breach.

Tech expert Kurt “CyberGuy" Knutsson talks about how Yamaha’s hydrogen outboard motor could revolutionize boating with zero emissions.

Tech expert Kurt “CyberGuy" Knutsson reveals how to memorialize or remove a deceased loved one’s Facebook account and protect their digital legacy from misuse or scams.

Tech expert Kurt “CyberGuy" Knutsson says an Apple Watch saved psychiatrist Amanda Faulkner by detecting deadly leukemia early.

Scammers and fraudsters are increasingly targeting the most vulnerable, especially nursing homes and the personal data of their residents. Kurt the CyberGuy has safety tips.

Infected USB flash drives can spread malware among multiple organizations in ways that can easily bypass traditional security systems.

With a fully automated warehouse system and AI-powered robots, Ocado's Hive picks, packs and delivers grocery store orders in just a few minutes.

Stay up to date on the latest AI technology advancements and learn about the challenges and opportunities AI presents now and for the future.

Recycling robots are using artificial intelligence to learn how to sort recyclables by recognizing patterns in colors, textures, shapes and logos.

The Reachy 2 robot is designed to be friendly and approachable, inviting natural interaction and is perfect for research, education and experimenting with embodied AI.

Kurt "CyberGuy" Knutsson shares several easy ways to keep your credit cards safe from digital thieves while you're traveling this summer.

Arcturus sets up cameras around the edges of baseball stadiums to capture real-time action and generate a 3D digital clone of the game.

Stay up to date on the latest AI technology advancements and learn about the challenges and opportunities AI presents now and for the future.

The CyberGuy explains why healthcare organizations are vulnerable to hackers after there have been a half dozen data breaches this year.

Developed at two California universities, the innovative technology combines brain-computer interfaces with advanced AI to decode neural activity into audible speech.

Microsoft patches 12 critical flaws, but six have already been exploited by criminals. Kurt “CyberGuy" Knutsson says updating your system is only a short-term fix.

Tech expert Kurt “CyberGuy" Knutsson discusses how robots can milk, feed and clean cows on dairy farms, boosting efficiency and comfort.

Tech expert Kurt “CyberGuy" Knutsson says quantum internet ensures unhackable security and redefines online privacy and speed.

Kawasaki's CORLEO is a hydrogen-powered, AI-driven rideable robot. Tech expert Kurt “CyberGuy" Knutsson reports on this new way of thinking about off-road transportation.

Developing a budget? Watch out for Those Budget-Bursting Gremlins

Personal Finance