Don’t forget to include these extra debt payments in your monthly budget. If you want to become credit card debt-free sooner, you will want to make more than your monthly minimum payments. If you have credit card debt, you want to pay the minimum payment every month, at the very least. Plus, you'll set yourself up to be in the best financial position when it comes time to retire. By adding this amount to your monthly budget, you’ll hold yourself accountable. Financial guru Dave Ramsey suggests putting 15% of your monthly income toward retirement. Like your emergency fund, nobody is going to force you to contribute to your retirement, but you still should if you can. This way you'll be able to afford any unexpected (and unbudgeted for) expenses that may arise. Build a contribution to your emergency fund into your budget. Just because a third-party isn’t billing you monthly for it doesn’t mean you can afford to forget about your emergency fund. 20 commonly overlooked monthly expenses to budget for 1. If you remember to include these in your budget going forward, you’ll be that much closer to having an accurate and useful budget. As a first step to creating an accurate budget, let’s review some of the most commonly overlooked monthly expenses. If you are struggling with creating a budget, there are numerous tools and templates available to put you on the right track. Quarterly or annual fees can surprise you and add up if you forget to prorate them and include them in your monthly budget. Lastly, many people don’t account for sporadic costs or things that aren’t billed monthly. When you do this, you can end up underestimating the true cost of things. People also often forget to include the full cost of certain monthly expenses because they rely on mental calculations about how much something costs. If you think you are following a budget, but it’s not written down, you very likely are not sticking to whatever it is you think you are following. How come? One reason expenses can slip your mind is if you don’t write down your budget, item by item. It’s easy to forget about certain expenses when calculating your monthly budget. Why do we forget certain monthly expenses and how can we create a more accurate budget? Whether you already have a budget that is in need of updating, or you are creating your first one, here we’ll go over some of these often overlooked monthly expenses that you should include in your budget so that you, too, can budget well. When you forget to include them, it can wreak havoc on your budget. Hardly anyone would forget to include their rent or mortgage payment in their budget, but there are so many small items that tend to slip our minds. And this is because there are so many monthly expenses that we tend to forget to include in our budgets. Unfortunately, this is a little harder than it sounds. In order to budget well, it’s essential that we include all of our expenses in our budgets. Instead, it’s important to learn how to budget well. There are so many budgeting methods out there to choose from, but it’s not just creating a budget that will set you up for financial success. Budgeting is one of the most important financial habits to develop.
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