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From Capitol Hill down to your home, everyone is concerned about the budget. Budgeting a household even with the best intentions, can lead to catastrophic situations. Here are some common budgeting mistakes to avoid
Budget Money You Really Have
If your income remains the same every pay period it is easy to predict what you will have every month. But too often people spend phantom money they plan to get with some overtime or a quarterly bonus. Until you have that cash you don’t know what might happen. You might miss work or get passed on for the bonus. It’s not real money, until it’s money in your hand.
Expect the Unexpected
A monthly budget balance to the penny can be destroyed by a surprise debt: illness, accident, taxes, etc. You might find a large chunk of your money is wiped out if you don’t have an emergency fund set up as protection.
Budget for the Future
If you spend exactly every penny each month you have nothing for the future. Build into your budget a plan for tomorrow. Purchasing stocks, bonds and mutual funds a little at a time with some money each month will pay off big time in the future.
Budget for Fun
You may have many bill and loans to pay, but you still need some fun. Put a few dollars away every month for a vacation fun or to buy yourself a present. You’ll be glad you did.
