By Article Author
Creating your first budget was easy. Following it – well, that’s another matter altogether. Here’s how you can fix common budgeting slip–ups and be on the way to better money management by next month.
Being unrealistic.
Underestimating your expenses will force your budget to be out of whack before the month even begins. For example, if you budget $70 a month for gasoline, but you actually spend $100, then you will go over budget.
Try this:
Include more money than you think you’ll need for a particular category. Track spending over the next three months to confirm the amount that needs to be set aside for each category.
Slashing fun.
Just as when you’re told you can never have your favorite ice cream while on a diet, you’re more likely to binge on two pints of cookies & cream at the first sign of stress. Like budgeting for a calorie splurge, you can budget for financial fun.
Try this:
Add an expense category to your budget for miscellaneous fun. You can set up a separate savings account for this purpose.
Not having financial goals.
Even if you don’t have debt, extra money is likely to be spent on impulse purchases that do not improve your financial health over the long-term.
Try this:
Write down your financial goals on a card. Keep the card in your wallet. Each time you purchase with cash or your debit card, look at your goals, and it will be easier to skip impulse buys.
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