This is the biggest weakness in most people’s budgets. Here’s how to fix it.

MarketWatch

by Venessa Wong

February 21, 2026

AI-Generated Deep Dive Summary

Most people don’t derail their budgets due to carelessness but because they overlook a crucial detail: failing to account for unexpected price fluctuations in variable expenses like groceries, gas, and utilities. Financial planners emphasize the importance of building a buffer into monthly budgets to handle these unpredictability, especially amid rising prices and inflation. Many individuals create budgets based on precise numbers that often don’t reflect real-world variability, leading to overspending and financial stress. According to Juan G. Hernández Ariano, a financial planner at WealthCreate, the lack of a contingency fund is a common pitfall. Rising costs for essentials can quickly disrupt even the most carefully planned budgets. By setting aside a portion of income each month for unforeseen expenses or price hikes, budgeters can avoid unexpected financial strain. This oversight matters because it directly impacts individuals’ ability to manage their finances effectively, particularly during economic uncertainty. Without a buffer, minor price shocks can snowball into significant budget blowouts. Financial experts advise allocating 10-20% of the budget for such variable costs or building an emergency fund to cover unexpected expenses. Incorporating this strategy not only provides immediate financial stability but also fosters long-term financial resilience. By acknowledging the reality of fluctuating prices and preparing for them, individuals can better navigate economic challenges and maintain control over their finances.

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Originally published on MarketWatch on 2/21/2026