January is almost over. You know what that means! It’s time to get your budget ready for the new month. In this post, I’m sharing five potential February expenses you don’t want to forget when you set your budget.
VALENTINES DAY
If you have kids in school or daycare, you will likely be asked to provide something for their class party. For the younger ones, you will probably have to provide a Valentine’s box as well. We typically buy a package of valentines or a DIY kit and call it good.
I usually sign up to bring the thing I am pickiest about my children having. Valentine’s Day is usually pretty simple. Just be sure whatever you plan to do (candygrams, etc) fits into the budget beforehand.
SPRING BREAK ACTIVITIES
Is your family planning a much-needed getaway over Spring Break? Set money aside in the budget the month ahead so you don’t fall short or find yourself further in debt.
If you’d like to go, but it just isn’t in the budget, start a sinking fund. Setting aside a little at a time can help make those vacation dreams come true later in the year without the debt. It’ll be worth the wait!
SUMMER SPORTS FEES
Spring and summer sports registration are in full swing. We’ve already registered our kids. If you didn’t get that $75-$100 registration fee budgeted in January, check February. If it’s not in the budget don’t beat yourself up about it; it really, truly is an “extra” expense.
We have made a point to budget for sports and activities since we live a relatively inexpensive lifestyle and carry little consumer debt. Our kids are also at an age where increased socialization and teamwork skills are a must.
SINKING FUNDS
Yes, they’re making a second appearance in this post. Did you know that vacations aren’t the only thing sinking funds are good for? A sinking fund can help you meet any planned or potential expense, provided you set money aside diligently.
Our family has an auto maintenance fund as well as an interest-bearing Christmas Savings fund. They’re both in a separate checking account in a separate bank from our regular accounts.
You don’t have to set them up at a different bank, or even in a different bank account; you can simply withdraw cash and set the money aside.
TAX PREP FEES OR SOFTWARE
Don’t forget to add tax filing fees to your February budget. Typically you pay per document, so be sure to call ahead or do your research online. It’s always better to overestimate the cost and have money left in the bank than to get sticker shock when you go to file.
And don’t just count on that big refund to cover your expenses; it won’t come immediately. And don’t get ripped off by accepting your refund up-front through the tax preparer. It is a loan, not free money. If you want to keep the entire refund amount (provided you get a refund at all), you’re going to have to wait for the IRS to process your return like everyone else.
AND DON’T FORGET ABOUT NO SPEND FEBRUARY!
Budget for extra savings or debt reduction, or just get the budget back in control by participating in a Life on a Dime’s sixth annual No Spend February challenge. Guidelines for this year will be in the next post.