Creating a regular budget and sticking to it can be a challenge for many people, so if you feel like you’re struggling to keep up, you’re not alone. Some people give up entirely on keeping a budget because they feel like it might not be working out for them, or that they don’t need one. However, their frustrations might stem from aspects they don’t know about, or mistakes they don’t know that they’re making.
If you’re finding yourself struggling with your budget, here are a few common mistakes people tend to make:
Overlooking various expenses.
When it comes to creating a monthly budget, most people outline their regular monthly expenses that are the same amount every month, or close to the same amount (such as a utility bill). However, it’s easy to overlook certain expenses, such as the smaller ones that only come up every so often. If you want an accurate figure for all of your expenses, make sure you’re tracking everything, even if it’s small.
Using numbers and figures that aren’t totally accurate.
When you create a budget, you need to start out with the most accurate numbers possible to reflect your income and your regular expenses. Income is easy enough to calculate, but expenses might prove more difficult, as you’ll need to spend about a month tracking every single purchase you make to get an accurate number.
Forgetting to include everyone in your household.
When you and your spouse create your monthly budget, it’s easy to think of it as a two-person deal — but if you have children, or even adult children living under your roof, they have to be considered if they are using your financial resources. Depending on the ages of your children, talking with them about your household budget and what your family can spend money on will go a long way in ensuring everyone is on the same page — and it can even serve as an effective lesson in money for your children as well.
Not having an emergency fund available.
As we have seen over the past couple of years, we never know when the worst may happen, and it’s vitally important to have an emergency savings fund to keep you and your family protected. If you don’t already have an emergency fund, you can get started with a savings account through Polam with a low opening deposit.