This seems like a silly post to write, but when budgeting, it’s really easy to give yourself exactly enough to spend and pay your bills, and forget about something major coming up. I’ve finally gotten to a point where I’m putting money away for all these so they don’t sneak up on me and ruin a month. It’s also a good reminder that these are things you may not see if you are budgeting based off 1-2 months of your last statements.
- Car registration.
Duh. Yeah, this gets paid every year (or two years, depending on where you are). Our cars are registered in a state where it is annually ~$120. So each car gets $10/month into a category, and now it doesn’t throw off my whole budget that month because I totally forgot about it. It also doesn’t help that my car comes due in August and Eric’s in September… - Vehicle maintenance.
This goes for little and big things. Oil changes are little and you can probably swing even if you forget to budget long term, but brakes and tires shouldn’t surprise you. Especially for a lot of military families I know with larger SUVs and trucks, larger tires can be very expensive. I have 19″ tires on my car, and I expect to pay over $1,000 to replace them all when the time comes (soon). This is not something to rob the emergency fund for, as my mechanic has been keeping me updated on the condition of my tires and they have an expected life. - Renter’s, umbrella, and other insurance.
My renter’s insurance is about $400/year, and I am notoriously bad at putting enough away for it. I would remember about 3 months before it was due and then struggle to come up with the full amount or have to ask to break it into payments. Insurance companies give discounts for paying in full annually, so we have our car, renter’s, and umbrella insurance all set to annually and actually adequately fund the categories each month now. - Christmas and other holidays.
Every Christmas, we usually spend $600-1000 on gifts. I’m a big gifter, and it’s like my favourite thing. Now that my son is getting older, I expect this number to increase. And here’s something I’ve learned about it: if I can’t afford to put away $85 each month for Christmas, I can’t afford to spend $1000. I can’t budget all year as if we’re going to spend $500 and then actually spend $1000. Also, just because Christmas is 10 months away doesn’t mean I get to use the Christmas money for something else in February. The idea of “I’ll have money for that in the future” is what leads to debt.
I also say other holidays because we do budget about $10/month for “other holidays” such as Halloween, Easter, Valentine’s Day, and the like. This allows us to have money set aside for a costume or an Easter basket. These dates aren’t surprises, and they shouldn’t be surprises to your budget. - Moving expenses.
While this isn’t necessarily annual, it is definitely worth budgeting for over time. Military families usually move every 2-3 years, and there area always some out-of-pocket expenses you can prepare for. If moving out of housing or a rental unit, there may be cleaning fees. Our current housing has a fee of nearly $300 for cleaning for move-out. There are expenses when moving in to a new location, and even waiting for reimbursement from the military can take a while. It is best to set aside money for these events and be prepared and not need it, rather than need it and not have it. - Uniforms.
This also isn’t annual, but uniforms do usually need to be replaced fairly often. The military issues enlisted members a uniform allowance usually on the anniversary of their enlistment. The first year Eric received it when we were married, I’m pretty sure we spent it on restaurants and clothes. A few months later, when he needed new boots and other uniform items, guess who was scrounging money in our budget for uniforms? It’s not a surprise that uniforms will need to be replaced, it’s just a matter of when. Even positive things like updating a uniform with a new rank can cost quite a bit. When Eric made E6, we started putting $30/month and his annual uniform allowance into a savings account. If he were to be selected as a Chief, we have $1200 saved for new uniform items. It makes it really easy when he comes home and says he needs a new parka or a new pair of boots.
I know it can seem overwhelming to start allocating money to all of these things at once, but it really helps highlight what we are paying for and what we can truly afford. The general idea is that each month should be very similar in what you budget. If Eric buys a new uniform parka (about $250 last time I checked), it shouldn’t change how much I put into the uniform account. The rest of my categories still get funded, and I don’t miss out on anything because I already saved for the big expense.
While I use YNAB for all of my budgeting and everything doesn’t need multiple accounts, you can do it either way. I do still keep our uniform budget in a separate account because Eric doesn’t use YNAB and it allows him to see what is put away. If I ever were to stop budgeting and start again later, I would still know that money has a specific job. (I do the same with our emergency fund.) If it works for you, you can create multiple accounts with your institution (make sure they are free!) and save in different accounts. If your bank allows you to set nicknames, name your accounts so you can see what the money is for, and don’t use it for other things.
Do you have any other things you budget for over the long term? I would love to hear your input!
