Budgeting is a great thing to do in both business and your personal life.
Do you budget at home? Setting a budget and managing it on a monthly basis is vital to staying in control of your finances.
Page, Lobo, Costales and Preston would like to share the top ten budgeting mistakes you don’t want to make:
- Don’t forget to plan for yearly expenses – Usually we consider the monthly expenses but what about bigger ones like property taxes, annual insurance premiums and such. Divide the yearly total by 12 and make sure you are saving up enough each month for that yearly expense.
- Don’t forget to plan for the unexpected – Emergencies will pop up. Your car breaks down, you have a leak in your home…there are many unforeseen circumstances that will come up. Set aside an emergency fund for times like this.
- Don’t forget to look at pas expenses – Look at your past seasonal expenses. The Holidays are usually filled with extra expenses we don’t plan on. Save up for those times all throughout the year.
- Don’t forget to contribute to savings – Treat your savings like a monthly expense. Don’t pay everything first then see if you have enough left over to stash away.
- Don’t forget the small items – Eating out, trips to get coffee at Starbucks, picking up some chips at the gas station…these are all small expenses that add up quickly. Make your lunch at home and brew your coffee at home. You’ll be surprised how much you will end up saving.
- Don’t forget to be flexible – If you have to trade different amounts for your different expense categories that is fine!
- Don’t forget to write it down – Don’t just keep a budget in your head, put it on paper, in a spreadsheet or with online software.
- Don’t be afraid to adjust your budget – If you didn’t stick to it last month, don’t drop it. Change it as needed and start out on your new month.
- Don’t be unrealistic – Avoid setting unrealistically low spending limits then become discouraged when you don’t meet them. Give yourself a little “wiggle room” just in case. As you get more comfortable with your budget each month you’ll get a better idea of where to set your spending limit.
- Don’t forget to treat yourself – Reward yourself once in a while. Go out to a nice dinner, buy something nice for yourself. You’ll appreciate these things much more since you have been doing such a great job sticking to your budget.