Personal budget is very easy to imagine possible but very difficult to do, let's discuss what the error in the preparation of our personal budget. Designing a budget is a good habit to optimize the individual or family finances. But many people who make the omission is so constructed that the budget becomes useless. Prepare a realistic personal budget so that we should avoid the following pitfalls:
- There is no annual spending plan you may have planned, such as daily necessities, electricity, water and fuel, and others. But oops ... do you have budgeted an annual fee, such as vehicle tax, the United Nations, the contract cost houses / vehicles, and so on. For planning purposes, you must allocate annual budget expenditures in the budget monthly for 12 months. The annual bill is easily forgotten, because not every month the bill comes. But should the funds to pay the annual bill is prepared each month in order not to overburden your financial ability when I have to pay. Prepare also a non-monthly budget on a monthly basis, such as budget holidays, family birthdays, and others.
- Not backing up the possibility of unforeseen many people forget to set aside money for medical expenses, vehicle repairs, and home care. Irregular expenditure is it really unexpected? You could say all vehicles, and the house needs repairs. The cost of repair depends on the age, quality, construction, and maintenance. You can estimate these costs, at least approximately.
- Regardless of past habits one way to overcome the irregular expenditure is to look at spending in the past. How often do you and your family to the doctor or the vehicle entrance to the garage, can show your expenses next year. Consider also, seasonal spending. For example, the cost of electricity and fuel in the summer school holidays are usually somewhat higher, because the air conditioning in the house anymore because of frequent burning or ride your own vehicle.
- Ignoring savings Many people who are truly saved only after all requirements are met monthly. Saving is like leaving money just to spend. There is a good habit behind. Set aside some money in advance to savings, and use the rest for spending.
- By not setting up an emergency fund to pay attention to your savings account will greatly help to build an emergency fund. Many financial planners suggest that we should establish an emergency fund with three to six times the amount of monthly income. The funding will greatly help you plan the next steps, if at any time been laid off or lose their source of income due to illness, accidents and so forth.
- Not take into account the little things to spend little but often, like chatting with friends at a cafe after work, a lot of costs. $ 20 for a cup of coffee every day at work, then $ 400/month just for afternoon coffee. Please check back, whether those needs are not burdening your finances?
- Too many notes, but not budgeted Many people who order their checkbooks every day, even a small expenditure. It would be better if you prepare in advance and record budget spending more wisely.
- No you do not need to be too flexible limit yourself - you can swap certain expenses with other expenses. For example, reducing the budget eating out in a month, to buy shoes in the next month.
- Not Just a note to remember can lead to incorrect calculation of costs and not ordered. Record spending will grow the discipline and the ability to control. You can use computer software to facilitate the recording.
- Do not turn you should be able to change the composition of the budget when there are changes in income or expenditure or if it is found that the previous budget plan does not accurately perceived. Do not ignore the budget that had been planned but change it if you feel necessary.
- Many people do not set unrealistic spending limits are low but not unrealistic, and became desperate when it runs out of money before the goal is reached. The goal is not to completely stop the budget expenditure, or pamper you occasionally. Conversely, to set priorities and develop the ability to control costs, and freeing you feel guilty after shopping.
The budget is intended to empower, not discouraging. Taking advantage of all the ability to prepare a personal budget that suits your lifestyle. In addition, the money is your own money; you should be able to regulate its use, that's why I set this personal budget.