5 Things you are NOT Accounting for in your Budget

All of PWR’s spending plans account for these 5 items. While every situation is unique, nobody likes to be blindsided with a large expense that was unplanned. Together with our clients, we develop a strategy to plan for expenses that will come up; it is just a matter of when. 

(1) Appliance Repairs/Replacement – Our beloved appliances won’t last forever.   With kids around, they may not even last their typical life expectancy. I have found socks stuffed in a crayon box, a travel tissue pack in my calculator case, and a mandarin orange in an Easter egg. Given that, it was no surprise when our daughter put coins in the slits of a standing humidifier as if it were a game of Connect Four, prompting a call to our repair person. Having a reserve for new appliances and repairs makes it easier to laugh about the situation rather than stress about the money.

2) Home Repairs/Replacement – If you own your house, don’t skimp on repairs and replacements that need to be done. Protect your investment. When appropriate, use quality materials that last longer. Saving consistently towards this investment makes financial sense. Having the cash when you need it for a roof repair or new windows makes the expense more palatable.

3) Auto Maintenance / Repairs – Since most people commute by car, this is an essential line item that we can’t ignore. Stay on top of your auto maintenance schedule and set aside funds for unexpected repairs. If you get into an accident, your insurance will cover you only after the deductible is met.

4) Medical Expenses - Know the deductible and out-of-pocket max for your insurance coverage. Make sure you are taking advantage of the FSA (flex spending account) or HSA (health savings account), if applicable. Take care of yourself and family by following a healthy lifestyle NOW to try and minimize costs in the future.

5) Pets – I have discussed the topic of pet insurance before since this is another budget buster. At our initial meeting, we discuss current and potential pets with our clients to ensure that we are planning for this cost appropriately. Just like kids, they can be expensive but worth every penny.

Linda Rogers, CFP®, EA, MSBA is the owner and founder of Planning Within Reach, LLC (PWR). Originally from New Jersey, Linda services clients throughout San Diego county and nationwide. She leads the design of PWR's investment portfolios which utilize broad, low-cost investments that integrate environmentally, socially, and governance (ESG) factors.

Planning Within Reach, LLC (PWR) is a fee-only and fiduciary wealth management firm offering one-time comprehensive financial planning, ongoing impact-focused investment management and tax preparation services in San Diego and nationwide. PWR is a woman-owned firm that specializes in busy professionals and impact investors. Planning Within Reach, LLC and their advisors do not receive commissions and do not hold any insurance licenses or brokerage relationships.

Making the Most of your Holiday Budget

Holiday spending tends to be a budget buster. It is just like our tendency to overdo the dessert table, knowing we have the New Year around the corner to start over with a “blank slate”! Here are some tips to keep costs in check. Set a holiday budget for the year – This should include gifts, decorations, and extra babysitting time for the holiday parties. You do not want to rack up credit card debt. The goal is to spend within your means while not feeling deprived.

Break it down - List everyone you have to buy for and decide on gifts and amounts for each. Remember, it is not about the amount. I have a few friends who give $5 Starbucks cards for special occasions. It is perfect! I can treat myself to a cup of coffee and biscotti on them.

Save the list – Keep the list of gifts given so you don’t repeat gifts. Nobody wants to be the Aunt or Uncle who gives a scarf every year!

Go creative with wrapping – Use repurposed gift-wrapping or boxes. My husband is a pilot and has a lot of leftover aeronautical charts. We use them as wrapping paper. It sounds strange but it looks great and people love it! The dollar stores also have some great holiday boxes in different shapes and sizes.

Encourage wish lists – My family does this through Amazon but you can do it through many retailers. It is the same concept as a registry. It gives the gift giver the opportunity to choose something within his or her budget that the recipient would actually like.

Join in on big-ticket items – Dinners out, golf lessons and zoo or museum memberships for the family are all things people can chip in for and give as a group.

Bonus tip: I asked some of the best gift-givers I know how they always come up with such a thoughtful gift. Their response – they write down ideas throughout the year as they come to them! Try it. It is sure to make holiday shopping easier and more enjoyable.

Linda Rogers, CFP®, EA, MSBA is the owner and founder of Planning Within Reach, LLC (PWR). Originally from New Jersey, Linda services clients throughout San Diego county and nationwide. She leads the design of PWR's investment portfolios which utilize broad, low-cost investments that integrate environmentally, socially, and governance (ESG) factors.

Planning Within Reach, LLC (PWR) is a fee-only and fiduciary wealth management firm offering one-time comprehensive financial planning, ongoing impact-focused investment management and tax preparation services in San Diego and nationwide. PWR is a woman-owned firm that specializes in busy professionals and impact investors. Planning Within Reach, LLC and their advisors do not receive commissions and do not hold any insurance licenses or brokerage relationships.