Everyone has made a budget only to watch it slowly be decimated by unexpected costs that were incurred.
First you need to set your monthly budgets that usually don’t move very much. For example, if you are a member of Dallas Crossfit and have a yearly membership you pay once a month put this in but add a few dollars each month in case rates go up after the New Year. There are costs that are variable like the electric bill but you should average this then add a few dollars to each month as well.
Setting aside a few hundred dollars a month for medical expenses might seem a little drastic, this will be a failsafe in case something disastrous happens. You do not want to have to decide between a trip to the hospital or being able to pay for your mortgage. With universal healthcare some costs will be mitigated depending on your plan but most likely you will have to pay up to a few thousand dollars before this plan helps out.
You should plan for the worst and hope for the best as this is a great way to stay on top of bill payments. The number one priority should be the health of you and your family. After that it should be to pay for the home you are living in whether it is rent or a mortgage. The essentials come after this and they include food, water, and transportation. Don’t start missing bills or credit card payments as this will just dip you deeper into debt.
As you can see not planning for the worst can end up costing you a myriad of things. The worst thing it could cause you is to lose your home. Next is to lose your mode of transportation as many people need this to keep their job. Last is your credit will be destroyed making it even more difficult to get a loan to help you out of your situation. All you have to do is plan in a conservative way and not an optimistic way. Optimistic budgeting does not work as nothing ever goes exactly as planned.