Are you a big fan of budgeting? Perhaps you know just how much comes in each month and can track your expenses to the cent?
But could there be money pitfalls that you might have missed calculating during your last forecasting session? Here are some surprising expenses that could take an unwelcome bite out of your savings account.
Insurance companies not coughing up their due.
Thought that you’d be safe in case of a car accident because you have the state-required driver insurance? This state-mandated insurance is meant to cover medical costs in the event of a traffic accident. But according to Noll Law Office, a Springfield IL personal injury attorney firm, “Unfortunately, many insurance companies will not provide bodily injury funds to an injured person until after they have completed medical treatment. This can cause significant problems for an injured person, who may be unable to work after their injuries and therefore have no money to pay for doctor’s appointments.”
Hiring the right law firm can help you prosecute and obtain the settlement funds you need to cover your medical treatment quickly.
Is there such a thing as too much vacation?
Did you know that almost 3 quarters of US citizens will go into debt to finance their vacations? Why does this happen? A survey found that when putting together their yearly budget, Americans often do not factor vacations into their plan. And even those who do budget for that trip overseas, the money they set aside is not always sufficient.
A“vacation mentality”is often to blame. The one where you feel deserving of all those extras and throw caution to the wind. The result: A hefty credit card bill that throws a monkey wrench into your perfectly planned out budget.
Millennials, in particular, are more likely to go into debt over Vacation spending. But there are tips to keep you from going into a debt spiral. Open a savings account for vacation spending. Or use a jar or other piggy bank. Save a little from other sources and redirect into your vacation jar. When vacation time comes around, only spend the amount you set aside for that purpose.
Your partner, siblings, and parents…
No matter how on top of things you are, the financial state of your family can affect your own finances. Worst case scenario? In certain states, if your a close family member goes into debt, that becomes your responsibility, if not legally, at least emotionally. And it can be very difficult to refuse a request from a desperate loved one.
But is there any way to avoid this circumstance? After all, your family’s finances are their own affair. and you can’t really tell others to avoid making disastrous financial decisions. Particularly if you are the type of family that avoids money-related discussions.
The most important move you can make is to bring financial concerns into the open. The more you discuss with your loved ones about your worries, you will be doing your part to show your feelings on the subject.
Unexpected costs can kill a budget. But the more you know what is happening, the more prepared you can be to pitch in as needed.
Wanting your kids to have it all.
It might be because your childhood was rough, which is why you want your kids to have it all. Or it could be a matter of keeping up with the Joneses… Whatever the case, when your kid asks you to buy something, it can be difficult to say no. Even more so when what they are asking for is a positive thing. for example, taking ballet classes or going to a summer camp.
But going into debt to pay for your child’s extracurricularswill not do anyone favors in the long run. If you want your children to become adults who do not go into debt, then saying no now will teach them to not spend more than what they can afford. It is also good to keep in mind that children who always get everything they want as soon as they want it are not always better off. Sometimes, not getting what they want immediately can teach life lessons that can only be learned in this manner.
Look for alternatives to what they are after. Saying no to your kid can feel excruciating in the moment. But it’s better than living with debt that can last for years and years.