Saving for something special? You probably have a specific dollar amount in mind.
But you may need to make sure you have enough in your everyday account to cover the less obvious costs involved in bringing your dream to life.
Whether there are ongoing payments you need to consider, or secondary costs which you may not have thought about, here are 3 common scenarios where you may need to adjust your budget beyond your initial estimate:
Negotiating a new car
Mid-year can be a great time to negotiate a good deal on a new car as dealers try and clear their stock to meet end of financial year targets. But although an attractive drive away price may be all inclusive for the initial purchase, make sure you do your sums on the added extras. According to the annual RACQ Vehicle Running Costs Survey (2013), maintenance costs, replacement parts and fuel economy can vary substantially depending on the manufacturer, with running costs varying by as much as $15,000 per annum depending on the choice of car.
Protecting your new car can also incur added expense once you take into account your third-party and other insurance cover – call around for quotes before you make your final decision so you are aware of the numbers involved.
Planning your next holiday
Flights and accommodation may be the big upfront costs but they’re only part of the financial package when it comes to paying for your holiday. Reduce the likelihood of going into debt by taking a big picture view and consider how much you need in spending money to make the most of your time away. Looking for a good value break? Excursions, eating out, car hire can all add up so do some research into the exchange rates for different locations to see how far your money will stretch.
Finally, resist the temptation to skimp on travel insurance – it could cost you thousands in the long run if you need emergency medical treatment overseas.
Buying a new home
While saving for a deposit may be a large enough financial goal alone, remember to factor in the additional costs associated with buying a property.
Get a rough idea of how much you need for stamp duty, conveyancing and transfer costs with the help of a buying costs calculator. Removals, cleaning and set up costs such as new furniture can also have you reaching for your debit card, so plan how much this might cost to minimise surprises down the track.
Look into the price of living in your property in the longer term – strata costs can add substantially to your outgoings, and consider the cost of commuting to work if you’re moving to a new location.
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