It’s easy to feel like you’re doing everything right with your budget — until your car needs new tires, you get a speeding ticket, or you suddenly remember your friend’s birthday is coming up. Just like that, your whole budget’s derailed.
That’s because most people only plan for the obvious expenses, such as rent, groceries, and utilities. But there are plenty of commonly forgotten expenses that can sneak up on you if you’re not prepared.
To help keep you on your budgeting game, here’s a list of common expenses many people overlook when budgeting.
21 Commonly Forgotten Budget Expenses
1. Weddings
Between the venue, food, decorations, and honeymoon, weddings can be extremely expensive. Even small ones with fewer than 30 people can cost over $5,000.
Setting money aside early can help you prepare for when you’re ready to tie the knot.
Create a wedding sinking fund (a savings account meant for periodic expenses) so you’ll have the money when the time comes.
2. Kids
Many people overlook the full financial implications of starting a family.
While children bring immense joy, they also bring expenses, including hospital bills, diapers, formula, childcare, and clothing, which can cost thousands in the first year alone.
If you’re thinking about having kids, bulk up your emergency savings and build a baby fund to help you cover some of the costs.
3. Children’s education costs
Saving for your children’s future educational expenses, such as college or trade school, is crucial. However, many education-related expenses come much sooner.
Back-to-school shopping, sports teams, music lessons, and field trips can add up quickly while your child’s still in grade school.
Set up a “school expenses” budget category for any supplies, equipment, or participation fees your child may need.
4. Retirement
Retirement can feel far away, so it’s not a priority for many young people. However, it’s best to start saving as soon as possible, so you can take advantage of compound interest.
If you put off contributing now, you may have to work longer or scale back your lifestyle later in life.
Try to maximize your retirement contributions in your 401(k) 🇺🇸 or RRSP 🇨🇦. And, if your budget allows, you could also contribute to an IRA 🇺🇸 or TFSA 🇨🇦 to receive more tax advantages.
5. Vehicles
Car owners often overlook budgeting for oil changes, tire replacements, and other necessary repairs. But if you don’t prepare for these costs, you might have to rely on credit to cover them.
By establishing a vehicle maintenance budget, you’ll have funds for your car when you need them. Even if you don’t have any car expenses for the month, just set aside that money for when you inevitably need it later.
6. Parties and celebrations
Hosting birthdays, baby showers, or holiday get-togethers can be more expensive than you think. Decorations, food, drinks, and party favors can really add up.
Because these events don’t occur monthly, they’re one of the commonly forgotten budget expenses. But if you entertain a few times a year, it’s worth planning for.
Estimate how much you spend on parties annually and divide it into a monthly savings goal (or weekly goal, if you have a custom budgeting period). Then, set that money aside into a sinking fund.
7. Travel
Whether you fly home for the holidays or take a yearly vacation, you need to budget for your flight, hotel, gas, and food while you’re out of town.
Without a plan for how you’ll pay for these expenses, you’ll likely end up putting everything on a credit card.
Create a travel fund and start saving well in advance of your trip.
8. Gifts
Whether it’s for a birthday, wedding, or Christmas, special occasions can sneak up on you.
To prevent this, add every birthday, anniversary, and holiday to your calendar. Before creating your monthly budget, review your calendar to check for special occasions. That way, you can work around it and cut other spending if necessary.
9. Health expenses
If you live in the U.S. and rely on health insurance, you may still be required to pay deductibles or copays.
No matter where you live, expenses like prescriptions, over-the-counter medicine, dental work, and eye exams are also often overlooked.
Your emergency fund is there for surprise costs, but if you know a health-related bill is coming (like new eyeglasses or a dental procedure), medical expense planning can help you save up ahead of time.
10. Possible death
Nobody likes thinking about dying — and estate planning can be expensive — so it’s no surprise that many people put it off.
But taking the time to create a will, set up a power of attorney, and plan for funeral costs can give your loved ones peace of mind and ease the burden if something unexpected happens.
If your family members rely on you financially, life insurance is also worth considering, since it can provide a cushion during a difficult time.
11. Home maintenance costs or renovations
Buying a home is expensive enough these days, but renovations and seasonal home maintenance can also be pricey.
Your emergency fund is handy for any major, unforeseen repairs, but a sinking fund can help with regular maintenance and future renovations.
If you’re confident a renovation will increase your property value, a home equity loan or line of credit could also be worth considering.
12. Car registration
Depending on where you live, you may have to renew your car registration and title annually — often on your birthday (womp, womp). It comes around at the same time every year, yet remains one of the most commonly forgotten budget expenses.
Be sure to note your renewal date on your calendar and set a reminder to start setting aside funds a few months in advance.
13. Annual subscription fees
Just like car renewals, pesky annual subscriptions always seem to catch people off guard. If so, they can completely throw off your budget.
Once again, create a sinking fund to budget for periodic expenses, and write down subscription renewals on your calendar so you know when they’re coming up.
14. Pet care expenses
Pets are part of the family, but they also come with big bills, including vet visits, grooming, food, licensing fees, and more.
Since these costs come up regularly, creating a separate category in your budget for pet-related expenses is usually a good idea.
You may also consider pet insurance, which can be as low as $25 per month, depending on your pet’s age and health. It could save you from a tough decision if your pet gets sick and requires thousands of dollars in treatment.
15. Personal care
Haircuts, skincare, makeup, and hygiene products can feel essential, not just for looking good but also for feeling good! Since they’re usually not monthly expenses, though, they can easily slip through the cracks in your budget.
To stay on top of them, calculate your average spending over the past three months, then use that number to create a monthly allowance for personal grooming costs.
16. Business expenses
If you freelance or have a side hustle, you likely pay for expenses such as office supplies, subscriptions, or marketing. Since these are irregular expenses and separate from your personal finances, they’re one of the most commonly forgotten budget expenses.
You can prevent this by tracking your business expenses separately and setting aside a portion of your revenue for these costs.
17. Taxes
Many people expect a refund when tax time rolls around, but sometimes, you end up owing instead.
This is especially true if you’re self-employed and responsible for quarterly estimated taxes. If you don’t plan ahead, a surprise tax bill could be a deathblow to your budget.
Make sure to set aside a portion of your income throughout the year in case you owe money to the IRS after filing. If you’re self-employed, aim to save at least 30% of your revenue for taxes.
18. Homeowners Association (HOA) fees
If your neighborhood has an HOA, you’ll likely have to pay dues, whether it’s monthly, quarterly, or yearly.
These fees often cover maintenance, landscaping, or shared amenities, but they can increase over time or come with surprise assessments.
Review your HOA documents to determine your payment schedule and incorporate those costs into your budget. For larger or irregular assessments, consider creating a sinking fund.
19. Charitable giving
Donations can be a great way to support the causes you care about and help those in need. However, like any other expenses, it’s important to have a plan when giving back.
Charitable donations budgeting allows you to contribute while still covering other expenses and achieving your savings goals. Just set a monthly limit in your budget for giving so you can support what matters to you while keeping your finances on track.
20. Rideshare expenses and delivery app fees
Grabbing an Uber or ordering takeout are often spontaneous decisions. Maybe you’re sick and DoorDash chicken soup, or you call a Lyft after a night out (kudos for not drinking and driving!).
Because these expenses aren’t always planned, they can easily fly under the radar.
If you use these services pretty regularly, it’s worth creating a separate budget category for them. Otherwise, you could group them into your food, transportation, or miscellaneous category (which we’ll talk about in the next section).
21. General unexpected expenses
Even if you list out every expense you can think of, life has a way of throwing a few surprises your way.
From last-minute gifts to parking tickets or a broken phone screen, unexpected expenses can mess up your budget if they don’t fit neatly in your regular categories.
By creating a “miscellaneous” budget category, though, you can catch anything that doesn’t have a designated line. That way, your budget stays on track, even if something unexpected arises.
How Lunch Money Helps You Budget for All of Your Expenses
Lunch Money makes it easier to plan for both monthly and irregular expenses. With customizable categories, recurring transaction tracking, and the ability to create sinking funds, you can stay on top of commonly forgotten budget expenses and take control of your finances.
Check out our article on how to budget for periodic expenses to learn how to plan for irregular costs. And, if you want to try out Lunch Money, sign up for a free 30-day trial today!
