3 things to avoid when budgeting
You might know this, but some things could be causing you more harm than good when you plan your monthly budget.
You might want to jump on the budgeting bandwagon before the year slips away – after all, this simple yet effective money management method has helped countless people take control of their finances.
Budgeting isn't just for a select few; it's for everyone. With focus and attention to detail, you can learn how to manage your income – whether it's daily, weekly or monthly – and create a sense of financial order. Trust us, the effort will be worth it.
Ashley, a money and budget coach, shares three valuable budgeting no-nos to avoid. Through her Her Money Mastery page, she empowers women to take charge of their finances.
1. Over-restricting yourself
Trying to be too strict with your budget often backfires, leaving you more frustrated than productive. Many people expect instant results, but extreme restrictions – whether overspending in some areas or cutting back too much in others – can do more harm than good.
Instead, be realistic. Identify what matters most to you and align your budget with your priorities. This way, you can stay on track financially while still enjoying your money.
2. Not moving your money immediately
If you don’t allocate your money as soon as it hits your account, you’re more likely to spend it impulsively. The best strategy? Move your money to savings or a dedicated account right away.
According to Ashley, when your money is out of sight, it is out of mind. Setting up automatic transfers ensures your savings grow before you even get the chance to spend.
3. Not knowing your budgeting numbers
Guesswork can lead to overlooked debts, turning them into unexpected expenses. Instead, list all your expenses, bills, and debt repayments to get a clear picture of your finances.
A solid budget starts with knowing exactly where your money is going. Taking the time to break down your lifestyle needs, wants, and savings goals will set you up for long-term financial success.
A simple way to stay on top of things? Add your billing dates to a calendar so you always have money in the right accounts before debit orders go off.
Getting your finances in order might feel overwhelming, but a positive mindset, patience, and consistency will take you far. Stick with it, and financial freedom will follow.
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