Often, major expenses come with additional expenses trailing quickly behind, and many people forget to take those into account. But it’s important to think about the big picture when it comes to bigger purchases. For example, if you’re buying a car, consider the total cost of ownership – from gas mileage to repair and insurance costs. If you’re buying a house, you’ll also want to account for property taxes, home insurance, maintenance, landscaping – you get the idea. Potential new homeowners can read more in “Budgeting Tips for New Homeowners.”
And don’t forget: Big expenses aren’t necessarily only about consumption. Sometimes they can be an investment. It’s also a good idea to look at the bigger picture when planning for expenses that’ll return dividends, such as education that earns certificates or credentials that might get you a raise.