Previously we had an in depth post on empowering ourselves as women through our finances. Now after making money, the next thing is to spend it prudently.

Budgeting is an essential part of managing your finances, and it can be a challenge to balance your expenses with your income. One important aspect of budgeting is identifying which expenses are essential and which ones are not. This can be particularly tricky when it comes to miscellaneous items.

So, what exactly is a miscellaneous expense? Generally speaking, a miscellaneous expense is any cost that doesn't fit neatly into a specific category. These might include things like gifts, games, or occasional expenses that don't happen every month.

While miscellaneous expenses may not be as consistent as your regular bills, they can add up quickly and throw off your budget! That's why it's important to have a plan in place for managing these costs.

Essential expenses are those that you can't do without, such as housing, utilities, and food. Non-essential expenses, on the other hand, are things that you could live without if necessary, such as entertainment or dining out. Recurrent costs happen every budget cycle or on a particular calendar period such as quarterly.

Miscellaneous expenses can be either essential or non-essential, depending on the circumstances. For example, if you're a freelance writer, a new laptop might be considered an essential expense. However, if you already have a functional computer, a new laptop might be a non-essential expense.

When you're trying to decide whether an expense is miscellaneous or not, ask yourself whether it's something that you need or simply want. If it's something you need to support your lifestyle or work, then it's probably not a miscellaneous expense. However, if it's something that's purely for pleasure or convenience, then it may fall into that category.

Most people make a simple mistake of placing everything that is not a basic necessity like food, utilities and housing into the miscellaneous slot. Have a sit down and check what you have been spending on. If you spend on an item / service that happens regularly like going to the salon every week to wash your hair it is no longer a miscellaneous activity. It is a non essential budget item. You can live without it or reduce the frequency in a pinch but it certainly happens regularly.

One approach to managing miscellaneous expenses is to create a separate category for them in your budget. This way, you can track how much you're spending on these items and adjust your spending as needed. To determine which items fall into this category, consider whether they are essential or non-essential and if they are recurring costs or not.

Another way to manage miscellaneous expenses is to set a limit on how much you're willing to spend on them each month and stick to it. This can help you stay on track and avoid overspending on non-essential items.

Remember budgeting is an essential skill that can help you manage your finances effectively. When it comes to managing miscellaneous expenses, it's important to identify which items are essential and which ones are not. By creating a separate category for these expenses and setting a limit on how much you're willing to spend, you can stay on top of your budget and avoid overspending. We can finally put our money towards the things that matter to us.

Happy budgeting!