Estimate Accordingly

Whenever estimating anything, there's probably going to be (a few) variables that you aren't considering. Also, since people don't often estimate unimportant things, you're going to want your estimates to be as accurate as can be.

I utilize this little trick whenever I estimate anything, and I can't tell you how many times it has saved me.

I always estimate against myself. I put on the most negative point of view I can, and I use the 20% rule. The 20% rule goes like this; "Since every variable cannot be taken into account, one should add 10% to every figure against them, and subtract 10% from every figure for them."

Basically it goes like this.

Let's say I'll need $500 to go on a trip. And I have $500. Good, right?

Maybe. But to be sure, your calculations should go something like this.

Instead of saving $500, I should save $550. Instead of having $500, I (act like) I have $450. So, I should end up with $600.

In simpler terms, just add 20% to every expense.

Now, 20% doesn't sound like much, but in many cases that's all it takes to hedge against disaster.