Miscellaneous expenses or budget are generally generated in the process when a budget is being drafted and extra spending or emergency funds are being included in the Miscellaneous category of the budget (such as Birthdays, Birthday gift, Christmas gift, toiletry,Magazine subscription and many more) in other to cater for any expenses that shows up without being planned for.
Even after satisfying those need that are most important such as Housing, Automobile, Clothing, Food, or Insurance. some still pop up unexpected in the process of trying to manage your expenses which can lead to overspending and sometimes disrupt your budget.
In this article i will show you how you can successfully manage your expenses. Miscellaneous expenses or budgets comes in different forms which may also helps to identify how expenses can be managed in the process of spending.
Miscellaneous expenses comes in the following form:
- Urgent Not Important
Your Tv cable subscription got expire and you need to renew it all because you want to watch a champions league match. If it is not budgeted for, you might decide not to renew it as at that moment because it is not important.
You might choose to watch or stream the match online on your mobile phone if necessary simply because it is not so important and you have an alternative for it.
And if you look at it other way round not watching some shows on your Tv cable won’t make you die or sick because it not one of the basic necessities of life. It is not so important because without it you will still live fine. This just a way of discharging some miscellaneous spending.
- Not Urgent But Very Important
Let’s take this for example, your Television (Tv) got spoil by high current overflow and your kids needs to watch cartoons and so on, on the Tv but deep down you know it not urgently needed because you know your kids will go to school, when they come back they do their class assessment work so they have little time to watch the television before night falls.
Para-venture they have a Laptop which can serve as an alternative pending the time the television is fully fixed or a new one is bought.
This type of want serve as urgent wants but not so important to be attended to immediately.
- Urgent And very Important
You went for an event far away from your home only for you to discover that your car battery has develop a fault or got spoils.
By all means you must get another one because you have to get home and can’t afford leaving your car there. Because you don’t know what might happen to it if you leave it over there. It has to get home
This is one of the miscellaneous spending you may not budget at all because these kind of spending don’t comes up occasionally. They are expense or spending that comes up unannounced or noticed. In this scenario the car has to be fix instantly by all means simply because it is an important priority that requires immediate attention.
These are the ways miscellaneous expenses comes in but you have to be able to recognize which one is urgent not important, Not urgent but very important and urgent and very important.
Knowing all these forms of miscellaneous expenses will help you to maximize your spending in the middle of your budget and miscellaneous spending.
Also See: 5 Steps To Starting Your Online Business
Ways To Reduce Miscellaneous Expenses In Your Household
1. Become a conscious spender
Becoming a conscious spender means being deliberate and fully cautious on what you spend on. This will help you to quickly analyze whether what you are spending on is important or not.
2. Control your spending
It easier said than done when you need to cut down your expenses but when you analyze your spending with the different Miscellaneous expenses forms above you will see clearly how convenient it is to easily control your spending and stay within your budget.
3. Stick to your shopping list
sticking to your shopping list helps reduce those items that comes in a flash and you buy it, this is helpful for impulsive buyer especially.
4. Go cashless
Going cashless did not mean you should not have any cash at hand but having less cash in wallet in other to control impulse buying.
5. Make big expenses small
This still boils down to cutting cost by finding an alternative to some items or goods you need to spend on. For example cinema outing to watching some movies on your laptop or Television set.
6. Budget Allocation
Usually this is an amount formally allocated to an household items or things needed in the house. This has to been done occasionally, even after having your annual budget set.