Budgeting is all well and good when you are trying to get your financial life into order, but many people just can't get the budget to stick. They fall victim to budgeting mistakes.. Here are the three most common budgeting mistakes people make and tips how to avoid making them.
Not budgeting for extras
It's always a bummer when you realize you have an additional expenses you didn't expect or budget for - a car repair bill, or being invited to a birthday party you have to buy gifts for . Always budget for the unexpected. If nothing unexpected happens, carry it over to the next budget period, or better still add it to the next month's unexpected expense amount or put it in savings.
Being too tough
When you are too tough on yourself by cutting out something you like doing - a movie, chocolates - you are so more likely to fail your budget goal. Budget for some pleasure.
Not having a goal
The reason for budgeting is not for the sake of budgeting. You need a goal - to increase savings, to be able to afford some luxury item. When you have a goal or a finish line in site the more likely you are to reach it.