Tuesday Jul 29, 2014

Budget Saving Mistake to Avoid

14 May 2011

Once in a while we all need to take a break from life, sit back and review our finances for the past few months.

It is important that we look over our finances, taking the time to see where out money went over the past few months. What I find is that despite how good you may be with budgeting your money, and allocating where everything goes, we are human and mistakes can happen.

What mistakes can happen?

You might be asking yourself, what could go wrong if you are budgeting well, and sticking to the financial plan you have made for yourself.

The biggest and easiest mistake that can come up is that despite following your budget, is the fact that there are places within your budget you can improve upon, taking the wasted money and putting it towards a better purpose. This includes putting it towards any savings goals you may have, or paying down any debt you have accumulated over the years.

What can I do to avoid this mistake?

With that in mind, it is essential that you review your budget every few months in order to ensure that your budget is efficient and allows you to save everywhere you need it to, while allowing you to live a life you want.

Realistically, if you are in quite a bit of debt, and want to decrease it substantially, you should be excluding several, if not all luxuries from your life, allowing your debt to decrease as quickly as possible.

If you are among the many looking to reach particular savings goals, then it is important your budget reflects that; you need to ensure that what you are spending on is essential to your daily life, while allowing you to save the remained of your money towards your savings goals.

In the end your budget has to reflect your financial goals; it is likely that your goals change every few months as your slowly accomplish your previous goals.

How I see it, it is important that you do not make the mistake of leaving your finances untouched, and sticking to the same old budget you may have been using for almost a year. It is important you revamp your budget every couple of months, adjusting any issues that may come up in your life, whether it is a pay raise, or new expense in your life.

This mistake can happen more often than you can imagine; what tends to happen is that you grow comfortable with your current routine and forget that change is necessary for you to grow and ignore the fact that you should be adjusting your budget accordingly and time goes on.

Do not make this mistake, review your budget every few months to ensure that you are allocating money in the right places, and saving where you can.

What saving mistakes do you tend to make?

image source: Thomas Hawk

About the Author

Sensei

My favorite weapon of choice is the samurai sword. I use it to cut my chicken during dinner, cut my hair and periodically carve my name into stone when I am bored. I love meditating on top of a 15ft high pole and eating those sushi’s with smoked salmon on top. I love everything there is about Canada and everything financially related to Canadians. I write deily posts from Canadian Banks to Credit Card information.

Comments (2 )



Little House Wrote:

My biggest budgeting mistakes revolve around food costs. I poorly underestimated our grocery and eating out expenses. I need to revamp my budget and increase those categories, or find a way to spend less on them. Everything else seems to be status quo though.

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Sensei Reply:

Food costs is definitely something that is hard to budget. I also underestimate my food costs from time to time. When I find myself going over budget in food one month, I try to avoid eating out the next month to hopefully balance my budget. If that doesn’t work, the only solution is to adjust my food budget. Glad to hear you other categories are going well.

[Reply]

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