We all know the sinking feeling of encountering unexpected expenses that appear out of nowhere. Often lurking in the shadows, these costs can wreak havoc on your budget if you’re unprepared. And as luck would have it, these expenses – affectionately referred to as “gremlins” – tend to show up at the most inconvenient time when your money is already stretched thin.
Here we shed light on these overlooked expenses that crop up yearly or within specific cycles. We aim to help you avoid their financial bite by bringing awareness to these elusive budget pests.
Identifying the Gremlins
Vehicle Maintenance: These automotive gremlins can drain your wallet if you’re unprepared.
- License Disc Renewal.
- Vehicle Licence Renewal.
- New Tyres.
- Wheel Alignment.
- Vehicle Service.
- Parking Fees.
Birthdays and Celebrations: While these are joyous occasions, they also bring expenses that can quickly accumulate.
- Social Obligations.
- Special Holidays.
Home Maintenance: Home maintenance tasks can catch you off guard if you haven’t factored them into your budget.
- Lightbulb Replacement.
- Blocked Drain Repairs.
- Body Corporate Fees.
- Geyser Repairs.
Subscriptions and Memberships: Monthly or yearly subscription fees can slowly eat away at your finances if left unchecked.
- TV License.
- Yearly Online Subscriptions.
- Annual Membership Registration Fees.
Extracurricular School Expenses: Children have jam-packed schedules with activities ranging from sports to arts and culture. These activities consume a lot of time and require significant financial investment.
- Annual membership registration fees.
- Field Trip Fees.
- Tutoring Fees.
- Coaching Fees.
- Sport/Culture Trips Costs.
- Competition Registration Fees.
- Pet Grooming and Vet visits.
- Yearly Bonuses for your Domestic Worker and Gardener.
- Doctors’ Visits.
- Charitable Donations.
The Financial Impact
Let’s consider a short case study highlighting these forgotten costs’ significance. Imagine overlooking the following expense gremlins within one month; a license disk renewal, a birthday gift, a visit to the General Practitioner (and consequently the pharmacy), and the registration fee for your kid to join the soccer club. Here is how these gremlins could add up:
|License Disk Renewal
|Doctor and Medicine
|R450 + R 750
|Soccer Club Registration Fee
|Total of unplanned expenses.
|R 2 450
That is a lot!
This example makes it easy to see how gremlins can quickly cause significant dents in your financial plans. The gremlins that hide within your yearly expenses have a way of quietly eating away at our budgets. And, if you face a few gremlins consecutively, things can quickly turn dire and lead to over-indebtedness.
By shedding light on these overlooked expenses, we hope to remind you of their presence and emphasise the importance of including them in your financial planning. By accounting for these gremlins upfront, you can better manage your budget, reduce financial stress, and avoid last-minute surprises.
So, the next time you plan your budget, remember to shine a light on those lurking gremlins to keep your finances on track.
If the damage these gremlins have caused seems irreversible, don’t lose hope! Please speak to one of our friendly debt experts to see how DebtSafe’s proven solution for over-indebtedness could help you return to financial freedom.