Does your monthly household budget include miscellaneous spending money?
If you are not budgeting for miscellaneous spending then at the end of each month you are most likely to ask yourself the question “where did all the money go?”
Miscellaneous spending is one category in the budget that can take a big chunk of money if not monitored well.
Miscellaneous spending money is money that you spent on things that pop up in your spending needs or things that you forgot to include in your budget like hair care products and toiletries.
No matter how perfect you try to include every expense in your monthly budget, at times it’s easy to forget something that is right in front of you.
When this happens that’s when miscellaneous spending money comes into use.
How much you set aside as miscellaneous spending money it all depends on your spending.
Monitor your spending in this category for at least 2 to 3 months then work out your average spending and include the amount in your monthly budget each month.
Make sure you stick with that amount every month.
If you set aside £100 for miscellaneous spending make sure you only use £100 only for that month.
If you finish the miscellaneous spending money for that month you have to wait for next month.
Of course it will take some time to have this discipline toward your money but in the end, you will get the hang of it.
Here are 3 Reasons Why You Need To Budget For Miscellaneous Spending
1. It Helps You To Control Your Spending.
A budget without a category for miscellaneous spending will make it difficult for you to stick to it as you will end up spending money in other categories.
It’s easy to monitor your spending and track bad spending habit if you budget for miscellaneous spending.
2. It Helps You To Save Money.
Including your miscellaneous spending money in your monthly budget and sticking to it will actually help you to save money as you can track how you are spending money in this category.
3. It Helps You To Stay Out Of Debt
If you don’t have any money in your monthly budget allocated to miscellaneous you will constantly overspend in other categories in your budget making your overall budget go over.
This will push you into getting into debt.
Allocating miscellaneous spending money in your monthly budget will help you to stay out of debt.
Over to you…
How much money do you allocate in you budget for miscellaneous spending?
You Might Also Like