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You’re on a budget now or perhaps your thinking about starting one. Maybe you’re looking to cut things out or maybe you’re just flat out not seeing much progress with your debt pay down. Here are The 5 Ways You Are Ruining Your Budget.
1. Not Following Your Written Budget
This might seem insanely obvious to some but you would be surprised at how many people take the time to write out a budget but then don’t look at it again for the rest of the month. A budget can only be useful to you if you follow it. Not following your budget will only lead to overspending which will limit your ability to pay down debt or save.
2. Paying For A Monthly Cable Subscription
In this day and age, there are so many television options that can easily replace cable. The average cable bill can run you anywhere from $100-$120 a month. 4 years ago when we decided to cut the cord, we went with Netflix. They offer so many TV/Movie choices for any age including exclusive content that is just as good as regular cable. The best part about it? It’s only $9.99 a month. 1 year with Netflix is the same amount as just 1 month with traditional cable.
3. Not Having A Meal Plan
A meal plan is a beautiful thing. Planning your meals for the entire week will help you to avoid unnecessary food waste or purchasing food you already have at home. Meal planning can also cut down costs because you can use leftovers for lunch the next day. If you work outside the home not only will it make it convenient for you but you will cut down on gas costs for having to drive somewhere to eat and costs associated with eating out. Another perk, it also saves you from that age-old question “Whats For Dinner”?
4. Not Saving For Expected Expenses
You’ve done this a million times before. You know Christmas comes every year. Your kid’s birthdays don’t change and your car will probably break down at some point. Saving for expected expenses is crucial for keeping your budget intact. Make sure to budget a specific amount every month to these categories and place them into separate savings accounts or cash envelopes for safe keeping.
5. Not Having An Emergency Fund
Just like it’s important to plan for your expected expenses it’s just as important to save for the unexpected ones too. The emergency fund is the buffer between you and life. Not having an emergency fund in place, even a small one, can be drastic to your budget when something comes up.
Keep in mind that no budget is perfect. We all run into things from time to time that may hinder our goals for the month. The idea is to be aware of the little things that can impact your budget and prevent you from being where you want to be.