How many times has the topic of money come up and you have heard the sentiment “well, everyone seems to do that?”
That topic of conversation centers on the fact that making mistakes when it comes to money is universal, and that most of which can be prevented because they’re on such a larger scale. In actuality, the problem is because they happen so frequently you tend to assume that they’re just something, from a money standpoint, you just have to deal with all the time, with no resolution in mind.
But the reality is these money problems are very obvious, yet still unresolved. For starters, when was the last time you reviewed your budget, and more than just the obvious parts of it.
Think about budgeting as a specific endeavor, not something you do casually. Budgeting should take a look at the big picture but not overlook the smaller nuances of your spending. For instance, if you’re keeping track of your car payment and your mortgage, along with your utilities, that isn’t a budget. That’s a start.
The budgeting process needs to take into consideration things like fuel for your car, grocery bills, eating out at restaurants or beyond just cable and phone but if you have overages or spend money on movies that aren’t part of your regular bill.
Another money mistake that is troubling, if not fixable right away, is assuming that the money you are making now will always be there, and that you don’t have to budget for a savings or to save money.
If you’re making good money now, there usually isn’t always a guarantee that the money will be there forever. Job loss, injury or medical issues could significantly lower your income to the point that your budget would need to change. The real problem is that during the time you were making more money then your expenses, you weren’t saving any money.
You should be saving money when you have any extra that is coming in on a monthly basis, thus being able to put aside the funds should your income change drastically for any of the aforementioned reasons. Less than half of the population has a savings account and instead choose to live paycheck to paycheck. That means should this group lose their job, they wouldn’t have any money to pay their bills.
Don’t let that be you, and start cutting expenses in order to save money.
Common money missteps don’t have to be part of your financial repertoire, and if others have fallen victim to them, break the chain and don’t cave to being just another statistics for saving.
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