Budget mistakes – everyone makes them. Handling money can seem complicated and confusing, but it does not have to be.
Every woman and mother
should be educated about how to make a financial plan and accomplish her goals,
for herself and her family. Here are some of the biggest mistakes, and how they
can be fixed.
1. The biggest money mistake many moms make
is not having a budget. The
worst thing you can do is simply spend your money without planning. Even if you
are not getting into debt, if you are not saving for the future, you will end
up in trouble. The solution is to make a budget.
2. Trying to keep up with your friends or
neighbors. Just because your relatives moved into
a nicer development, does not mean you can afford to. Is a higher housing
payment really affordable for you now? We have made this mistake in the past. We loved our house, but began to despise it because we couldn't afford to leave the house.
3. Not putting money aside for emergencies. Part of living debt free is having a small cushion saved in the bank for unexpected expenses that come up in every day living. What if your car breaks down? Or your child needs a root canal? Prepare for the unexpected.
4. Calculating your expenses based on two incomes. You may plan for both you and your spouse to work, but what if there is an unexpected illness or pregnancy? I recommend budgeting based on one income.
5. Spending money as soon as you get it. For example, you get your tax return and go out and buy a Plasma television right away. Or you get a bonus at work and go out and buy that hot tub you’ve been thinking about. A much better idea is to put any extra small or large amounts of money into savings.
6. Buying items on impulse. This includes buying anything that is not budgeted for. It could be a coffee every morning before work. Or perhaps you have a bad day and decide to spend an afternoon at the mall shopping. Remember, if you don’t have money set aside for it, don’t spend it.
These are just a few of the common budget mistakes people make. The main thing is to have a financial plan, and stick to it, no matter what.