Mon. Aug 26th, 2019

Mistakes That Can Ruin Your Budget Planning

3 min read

If you feel that no matter how much you plan, you budget seems to be getting blown off, you might want to try something that is a bit of a different approach. All this time you were focusing on how to handle your money right? Now let us turn the tables and look at how not to handle your money as well. This will help you identify all the mistakes that you have made and will help you stay on track and stay focused.  Here are some mistakes that can ruin your budget planning.

Borrowing Too Much Money

If you have a financial difficulty, there are many ways in which you can obtain small loans that will help you settle of the amount. However, there is one big mistake that most people make when getting a loan. They tend to get something extra thinking that they might as well. But what they fail to remember is that the higher the amount you borrow, the more you will have to repay. Therefore, instead of getting in debt for no reason, always borrow the amount that you genuinely need only.

Impulsive Buying

How many of you go and do your grocery shopping without a proper shopping list? The next time around just try this out for size. Make a shopping list before you leave your home and see how much you manage to save up when you buy according to that list. In fact, impulse buying is what almost all of us do, most of the time. If you are going out to shop, even if it is just groceries, you should always know what exactly you want and how much you should shop. If you simply keep shopping impulsively it will take a hit on your budget.

Lending Money

Just like how you have to go through procedures when you are asking for credit, you should also think about your security when you lend money to friends and the likes. Never lend an amount that is too big for you to forget about and if you do, make sure that they are a friend that you trust and who you know, will pay you back. If you lend money to somebody and they do not pay you back, you may find that you are struggling with your bills too. In fact, the more that you lend money to friends and the likes, the higher the chance that you may not be friends for too long if they fail to pay you back.

Not Keeping Track of Where Your Money Goes

Most of us will not maintain an account of what we spent for on a daily basis and how much we spent on it. Keeping a journal to maintain all these accounts will actually keep you aware of your trends when it comes to expenses and if you have overspent one day even, it will jump out at you. these are some of the common mistakes that we all make, that can completely ruin our budgets.

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