One of my favourite quotes by a former US politician goes something along the lines of ‘It’s clearly a budget. It’s got a lot of numbers in it’ and if that’s what a budget is to you, then it’s obvious where the problem lies. If you have bad budgeting habits now is the time to break them by using these strategies:
1. Be realistic not opportunistic: A realistic budget is an accurate one and if you are 100% honest about your spending habits and debt you will enjoy greater financial freedom. Avoid opportunistic budgeting by only working with your fixed income and never add additional money such as jackpot winnings from your favorite www.iphonecasino.com.au games to your earnings. By budgeting with a set amount of revenue each month you can achieve a far more realistic idea of your financial situation.
2. Set fixed targets not estimates: A budget is designed to help you control your money and to curb your spending in areas where you are prone to debt. Set a fixed target rather than an estimated amount when paying off a debt or saving to ensure that you know how quickly you can accumulate funds.
3. Do more than think about emergency savings: A major factor of successful budgeting is to expect the unexpected and to be prepared. Being aware of needing emergency funds but not actually saving for the unknown is a common budgeting mistake. Include an emergency fund in your budget and deposit the funds into a separate account if need be.
4. Keep track, not trails: There are so many free online budgeting apps and programs that can help you keep track of your spending and expenses. Rather than having to sit down with a paper trail a mile long, use technology to help you keep on top of your budget and manage your money more effectively.
5. Keep it simple: A complicated system or unrealistic budget will see you abandoning your goal very quickly. A straightforward and concise plan will help you stay on target and protect you from hurting your financial freedom.
Have you overcome bad budgeting? Or are you still making costly mistakes that can easily be avoided?