Five Things to Avoid in Budgeting

You’ve tried budgeting and it did not work and you left. The answer is simple, You will never achieve financial success unless you manage your money. You have a choice : to meander through life with a lost feeling foggy or take control and experience the peace of knowing you have a plan.

Try to write down your financial goals in the short term and long term. Ask yourself, “how I will reach these goals?” You intuitively know the answer : you need to tell your money what to do and you can not do this unless you have an operating budget.

I challenge you to give it another try. The millions of people successfully control their money and you can too. Avoid these traps right and you can win with your money :

1. Leaving things out of your budget.
Many people try the yellow lined pad, write down what they think of at the moment, and expect it to work. Budgets need to include EVERYTHING, including an appropriate amount of “blow money”. Why? Because in real life we really do blow money.

2. Over complicating your budget.
Computer nerds : listen up. A workable budget isn’t a 10 page excel spreadsheet that you deliver from the mountain like Charlton Heston in “The Ten Commandments”. A workable budget needs to be simple.

3. You don’t actually do it.
Some people talk about budgeting and think about budgeting but never actually get paper and pencil out and write one. It’s time to stop making excuses on starting your budget.

4. You don’t actually live on it.
A common mistake is to write a budget, put it in a drawer and not actually follow it. Here is the deal: you control the budget, but once it is complete, it controls you until you decide to change it. How will you know if it works if you don’t actually follow it?

5. You don’t give yourself enough time.
When this doesn’t work after a month, do not give up. You’re normal. These things take time. Allow at least three months before your budget on paper reflects reality. Even then, you must refine – grant these numbers on a regular basis.

Do not give up because of past failures. You work hard for your money and should work hard for you. Get up, dust yourself off and try again!

source article : Joeplemon

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