Keep Your Budget Intact by Preparing for These Three Common Pitfalls
Sticking to a budget is about more than just keeping your expenses in check. Yes, this is important, but unexpected financial traps can completely blind you and ruin your budget. They fall into three main categories.
Finance writer Trea Branch highlights three major pitfalls that can ruin your budget. Here are some management tips:
- Emergencies: A solid emergency fund should definitely be part of your budget plan. Car problems happen, as do layoffs, unexpected doctor visits, and veterinary bills. Lack of preparedness for this can easily lead to budget disruption, and this can lead to desperate financial steps. Even if you are saving just a few dollars to create an emergency fund, it is important to make it part of your plan.
- Irregular expenses. And then there are all those irregular expenses that you forget about: birthdays, holidays, car insurance premiums, etc. When budgeting, go beyond monthly bills and include all of your quarterly, annual, and biennial expenses as well. Or, consider creating a separate budget just for unexpected expenses.
- Small purchases that add up: A few dollars here and there may not seem like a lot, but they can add up and seriously impact your spending plan. This is why it is so important to count every dollar .
We’ve discussed these pitfalls in one way or another before, but it’s helpful to know what they are so you can reliably protect your budget. Check out the full Trea post at the link below.
Stick to Your Budget by Fighting These 3 Budget Busters | Two cents Trea