Friday, 27 January 2017

Budgeting - What mistakes to avoid


What mistakes you should avoid when you do your budgeting?







  Every month I try to do it better, that i can save more money and I know where my money is going. This year is going to be your year. Maybe your new year resolution is budgeting more and getting your finances in order. Like the title says in this post I gonna talk about what mistakes you should avoid.

Here are some tips what might help you.

1. Don't make this complicated. 
   It doesn't have to be so detailed. If you have so many different categories you do not want to budget, at first it's fun but in the middle of the month you are tired to search what to but where. If, it's simple then it's better.

2. Don't be too strict on yourself. 
   I know that your main goal is to save money. But make sure that you are allowing yourself to have little bit fun too. You don't have to overdo this. Just do it in moderation, then you won't feel guilty about it because it's still your budget and you are trying to save money. Not spending any money for yourself is bad because when there comes a time when you want to spend something on yourself then you maybe over spent it like eating out or date night money or things like that.

3.  Don't forget to save money for larger long term expenses.
   Like family holidays, annual car insurance, Christmas presents and food. These things won't come ever month, so you have to plan these things what comes once a year or just not so often. These tings may be big expenses and if you don't plan this then it will mess up your monthly budget.

4. On weekly basis balance out all your expenses. 
   Get track all of your checks and write them down. Especially if you don't know where your money is going.  Doing that you will keep yourself motivated and organized. When you stop being organized then you may feel overwhelmed and this will impact your financial life negatively. So don't wait for the end of the month to write down you expenses. Also, you may forget something.

5. Work as a TEAM
   Don't forget to do this as a team. If you are married then you should work together, Don't try to force this budgeting to your spouse. It's your both  outcomes and incomes. Doing together will make it easier. You have to be in the same page, talk openly about you goals and visions you have.
   
6. Buying on impulse. 
   Buying small chocolate or gum in the checkout lane every time will not seem very harmful. But  no matter how inexpensive they are individually. They will add up, It's better to buy it in bulk and save some money.