Signs That Your Budget Is Not Properly Formulated
You want to save money for your future, and you want to be more financially stable. These goals are fairly standard, but in practice they are difficult to achieve. Budgeting is one of the simplest but most effective ways to save costs. But it sounds simple. If the will to resist impulse buying is weak, budget mistakes will be made.
You should develop good consumption habits, resist any temptation, and spend more money on things that will not serve you in the future. Find out what budget mistakes you might make in this article.
Define Budget
Before we begin the juicy part, let’s define what the budget is. In short, a budget is an expenditure plan for a specific period. Budgeting involves identifying how much money has been earned and spent in a specific period of time. People usually have budget specific goals. For example, save money for a vacation trip, eat in a good restaurant, or do something more important. You must be clear about your goals. Because it is an inevitable way to fail to build a budget on a vague concept.
Your budget
Here are some budget mistakes you may make:
- Set unrealistic goals
If you set your goals too high, you are bound to fail. There is nothing wrong with looking far, but don’t expect yourself to do so much in such a short time. For example, it is possible to ask yourself if you want $1 million, but whether it is realistic to expect that much memory in two months.
The unrealistic goal problem is that every time you fail or fail to make progress according to your own will, your motivation will be damaged. For example, it is also the target of 1 million dollars. At the end of the first month, if you don’t save at least half of the money, you will realize that this is impossible, and ultimately can not be completed as planned.
- Regardless of your monthly income
How to make a budget without knowing how much money you earn in a month? If you don’t know the salary, you don’t know how much you can spend on bills, rent, and other necessities. You can spend every penny and even have no time to save it.
- I don’t know how much you charge
There are two expenditures, three in total. The first expense is the cost incurred. They are your electricity, water, rent Loan repayment and other expenses that you know may occur each month. The second is not fixed, but you know the necessities such as food and groceries. The third is the things you buy to entertain yourself(properly good) and things you may not need at all.(For example, the vase you bought is on sale.).
If you don’t remember your expenses, you can easily overestimate yourself or succumb to the purchase impulse. When you know exactly how much you need to spend, you can adjust the third type of expenses accordingly.
- You don’t pay according to income
This means spending more than you earn. If you are used to negative accounts, this is already a bad sign of the budget. It is a budget mistake not to correct this bad consumption habit. Because if your willpower to exclude extra expenditure is as fragile as a baby’s head, what can a piece of planned paper do? Until you solve this problem, your budget plan will always have a break button. This button will inevitably be pressed when sales arrive.
- Failure to follow the plan
Well, it is an obvious mistake not to follow the plan, but it is a mistake that most people will make. You can say:; i just want to review my budget this time; this is the last time I do this. “; now you will find that all the money has been spent and you have not complied with the budget plan for six months. Damn it, you may stop making the budget plan for the second month.
delivery
The problem is, sometimes the answer is right in front of you, but you can’t see it, This list consists of the obvious reasons for your budget failure and the reasons for your mistakes. But sometimes you need assistance to point out these things. Just remember that your budget goals need to be realistic, and you must thoroughly understand your financial situation, You must stick to the plan. So you won’t go astray.
