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7.8 PLANNING AND FUDGE FACTORS; UNPLANNED EXPENSES AND PERSONAL FINANCE, THE MAIN
REASON PEOPLE GO INTO DEBT
Careful
planning helps you get a handle on most major expenses. It's those little extras that fool
you and add up to a lot more than you expected.
While
many people resist planning and list making, the amount of time spent planning is paid
back many times in good organization and a clear mind. In addition through planning you
tend to gain an overview and remember things that you would have otherwise forgotten.
Planning
usually involves making a list of all the possible expenses some of which you may not know
and then adding a "fudge factor" of 20% -50% for unexpected costs.
Travel
is a good case in point. You know roughly how much the hotel is going to cost and the
meals, but what about the tax, tips, cabs in the pouring rain; how about museums,
amusement parks, snacks, souvenirs?
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