6 Helpful Budgeting Habits

From my previous blogs, you have been reading various ways on how to save and get out of your financial woes. Once you follow and focus on those tips, it is important to make sure you turn them into habits so that you are assured of better finance handling.

Here are some tips on money mistakes to avoid:

  1. Splurging more than what you actually earn – The root of most financial problems is the inability to control spending. No matter your income level, if you spend more than you earn you will be broke and in debt. Whether you earn big or not, always bear in mind to be frugal about spending. Spend LESS than what you earn!
  2. Review your annual finances – Having money mistakes is “fine” for a certain period of time, if you are not aware of it. Real issues start when the mistakes are not properly address over the years. Taking time out to review your annual finances could help you ward off any problems that may affect your financial stability. They say ignorance is bliss, but it can cost you dearly!
  3. Paying extra for convenience – It may be a breeze to justify spending your funds when it is at your convenience and disposal. Good example is, you don’t plan out your budget for meals; hence, you tend to eat out, at your convenience! Anywhere you go is convenience, even up to your bottled water and coffee on-the-go. Paying for convenience is fine, but do it all the time and in excess and you will always wonder why you never got ahead financially.
  4. Warding-off tough decisions – “Life is unfair” at times. Sometimes your finances go down or just disappear suddenly. In times like this, you can try to finance the gap between what you make and what you spend, start cutting items from the budget. Bottom-line is, you have the basic necessities in life: food, water, shelter, clothing, education, excellent health, and a way to generate income to live by, then you will be fine!
  5. Spending on impulse – Huge mistakes to many people is buying on impulse. You see something that you really fancy and dreaming of having it for yourself could ruin your good judgement on your budget. Then, a few days later, you regret buying it since it is not really needed, such a waste of money! Before making a purchase, sleep on it.
  6. Paying bills without scrutinizing details – You might think it is but normal paying bills without checking the details of your bill. Every bill you receive has a summary of the charges and then a breakdown showing what you were charged. It is easy for companies to have data entry “mistakes” that throw an extra charge in on your account. If you don’t review the bill it can easily slip past you. Be sure to check the actual statement to make sure you were charged the right amount.

 

 

 

Author: Michael Welter

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