8 Sneaky Budget Busters and How to Avoid Them
Everyone makes a budget with the best of intentions in the beginning. Like your New Year’s resolutions, you print it out to stick on your fridge, and make vows that you’ll live by it faithfully. Over time, however, adhering to the budget slips to the backburner of your mind more and more, until it’s completely dismissed for being “too hard to stick to”.
Keep in mind that sound budgets don’t automatically mean restrictions; rather, it means taking control of your money and spending wisely, recognizing that innocent little expenses can quickly add up to be budget busters.
Common Budget Busters and How to Fight Them
By combating common budget busters, your budget will increase in accuracy, so you’ll feel less restricted and more dedicated to your saving plans. Here are some sly, innocuous expenses that cause major financial damage:
App Purchases
Have you planned for app purchases in your budget? While it’s true that $0.99 here and $2.99 there doesn’t seem like much, it eventually adds up.
Fight! Download free versions of apps and disable the “In-App Purchases” option on your phone. If you must make a purchase, add up the sum of your iTunes or Google Wallet emails for the month and include it in the budget.
School Fees
Tuition, book orders, and supplies, can be a persistent drain on your finances, even after back-to-school shopping. In addition, activities and field trips can also prove to be unexpected budget busters.
Fight! Add a line in the budget for miscellaneous school fees. Since it’s a floating cost, assess the fees you pay in one month and use that as a measure for future budgeting.
Charitable Donations
Many people budget for annual donations for their church, community, or favorite charity. But what about charities you donate to at the cash register in the grocery store, or money tossed into a charity bucket on the street? Those expenditures can add up before you know it.
Fight! Decide how much you can afford to donate to pop-up charities and stick to it. By setting an amount in advance, you can say “yes” to a dollar here and there without spending over your limit or feeling the guilt of saying no.
Flash Sales
Millions of people get flash sale notifications from daily deal websites. Surprise items at a deep discount and limited quantities? It’s a perfect storm for whipping out your wallet and overspending on things you don’t need, making it an adrenaline-fueled budget buster.
Fight! Unsubscribe from daily deal emails and limit surfing their flash sale for when you have “entertainment/fun” money in the budget. Having those emails sent to you daily is far too tempting.
Bank Fees
Unfortunately, there’s a good chance you’ve never noticed how much you spend on these, since maintenance, overdraft, and annual fees are automatically deducted from your account without consent. The result is a sneaky budget buster that’ll have you checking your account balance and wondering where your money disappeared to.
Fight! Swap your current account for a no-monthly-fee bank accounts. Check with your local bank for details and restrictions.
Expired Perks
Whether it’s the cable company offering “free” movie channels or a magazine offering trial subscriptions, failing to cancel after the promotion ends will cost big bucks. In fact, these budget busters rely on you forgetting when the trial ends. Many companies put your account on auto-pay, meaning once your trial is over, your account is charged for the remainder of the contract.
Fight! Set a notification on your phone for the day the perks expire so you’ll remember to cancel.
Movie Rentals and Streaming
Renting a movie is usually a low-cost entertainment option. A $1-per-day rental is a great deal if you return it after a day or two; forgetting to return it for a few weeks can prove to be abudget buster. The same applies to streaming services like Amazon Prime, Hulu Plus, and Netflix.
Fight! Always return videos on time. You can set a reminder via phone if you tend to forget. When possible, go for free streaming options.
Coffee Breaks
A $2 cup of coffee every day can wind up costing up to $520 per year. Plus, once you walk into a café, you’re hit with the smell of pastries and other money-sapping goodies, leading to an even larger budget buster.
Fight! While budgeting for your coffee breaks can help you control them, cutting them out is even better for your wallet and waistline. Bring coffee from home, or head to a fast food place for a cheaper version of the same coffee.
A Penny Saved Is A Penny Earned
You can’t predict every expenditure that’ll happen throughout the month, but you can prepare yourself for the contingencies. Knowing where you slip up and spend extra money means you can plan ahead to avoid the budget busters that throw you off course.