What Hidden Costs Should I Watch Out For?

When budgeting, watch out for hidden costs that can significantly increase your expenses beyond the initial price. Common hidden costs include:

• Service charges and taxes at restaurants: Many restaurants add a 10% service charge plus a 9% Goods and Services Tax (GST), totaling about 19% extra on your bill.

• Tourism and attraction fees: Hotel stays may include tourism taxes, and attraction tickets sometimes come bundled with extra fees.

• Transportation surcharges: Taxi fares can have peak-hour surcharges, and if renting a car, Electronic Road Pricing (ERP) tolls apply during certain times and locations.

• Renting costs: Beyond monthly rent, expect security deposits (usually one to two months’ rent), agent fees (often half to one month’s rent), stamp duty (0.4% of total rent), and utility bills (electricity, water, gas, internet).

• Accommodation costs: Budget hotels and hostels may seem affordable but often come with additional fees or lower value for money, so factor in the total cost carefully.

• Home buying fees: If purchasing property, administrative fees, option fees, valuation fees, legal fees, and stamp duties can add substantially to the purchase price.

• Event-related costs: For weddings or special events, extra charges may arise for early starts, makeup artist add-ons, or photographer fees.

Being aware of these potential hidden costs helps you plan your budget more accurately and avoid financial surprises. Always ask for a detailed breakdown of fees upfront whenever possible.