BLOWING YOUR BUDGET – Creating a budget is important – but it’s quite difficult to practice.
If you are a savvy budget-builder, you will not forget to track your expenses, check your money goals and prioritize savings.
MAKING IT TOO STRINGENT – There is no such things as a fix spending every month. Give your budget a leeway for unexpected seasonal expenses (depending on your needs), from summer vacation to winter holiday shopping. A stringent budget is difficult to handle and can derail your budget plans.
CREATE A SYSTEM FOR YOUR BUDGET – Whether you use the old-fashioned way of creating your budgeting system, or you have a mobile app, you need a system to track your spending. Stick to what works for you.
SPUR-OF-THE-MOMENT PURCHASES – You may have the best budget but it’s useless if you don’t practice it. Impulse buying and habits will lead to ruin your budget plans.
NEGLECTING SCHEDULED BILLS PAYMENT – Don’t forget to allot a room in your spending plan for your quarterly and annual bills so they don’t catch you off-guard when the scheduled payment is due.
FORGETTING YOUR SAVINGS – Design your budget to go beyond monthly expenses. Make sure that you have enough to pay for emergencies, pad your emergency funds, retirement money or your other savings goals.
NEGLECTING LONG-TERM MONEY GOALS – Leave space in your budget, even for just a small amount, purposely intended for any long-term financial goals, such as buying a new car, or a summer holiday vacation. This can be motivating and encouraging financial goal.
REFUSING TO YIELD ON FIXED EXPENSES – All your fixed expenses, such as rent, car payments, utility bills may seem to be amounts that cannot be avoided. But they’re not. You can always find an alternative for all these fixed payments. Look for cheaper costs and better interest rates.
CHECKING YOUR BUDGETS FOR INACCURACIES – Don’t forget to review your budget every month, especially when you are just in the starting stage. Be aware of your regular expenses, or if you have miscalculated any regular bills or need to tweak it in other ways.
Once you are able to work on these spending blunders, I am pretty sure that you will see some improvements on your budget. It’s not an overnight thing, but for sure, your funds will increase gradually!
You may be tempted to spend out of your budget range every now and then, but with self-discipline on your financial matters, there’s no way that you cannot achieve your monetary goals. Again, keyword is DISCIPLINE!