D' Finance Bench

The Right Place To Sit At For Financial Advises

Avoid Spending Pitfalls

With all the advantages that are evident from personal budgeting, it is no wonder that more and more people are relying on them to reduce debts and increase their savings. However, all ‘budgeters’ need to be careful to avoid some common pitfalls that appear often. 
Credit cards may seem like small pieces of plastic, however they can cause a great deal of trouble for the owners. It is common for people to make unwise purchases, which they would have avoided otherwise, because they had the credit card in their wallet. The best solution for many people is simply to get rid of credit cards and begin paying only by cash, check, or debit cards. You may want to keep one card handy for emergencies, but it is probably best to keep it out of reach, and far away from your wallet.
Another problem with budgeting is impatience. There are financial goals set, but people do not have the patience to complete a savings program. For instance, an individual begins setting aside money for a new car; however, after a few months they discover the car of their dreams. Rather than waiting, they make the purchase. This could pose some serious financial strains. Discipline is a must to prevent impatience from breaking your budget. 
Once a person makes a budget, they often fail to adjust it when necessary. A budget is created using a set of expenses and income figures that are liable to change. As these figures do change, it is important that the budget changes to reflect the adjustments. There could be some major deficits if this is not done appropriately and promptly.
Of course nobody forgets about Christmas or Hanukkah, however many people do not consider budgeting for holidays when creating a budget. Therefore, adequate funds have not been set aside for presents, food, parties, etc. These items should be factored in and saved for throughout the year.
Finally, many people factor in transportation and accommodations for vacations in their budget, however they underestimate money needed for food, entertainment, and spending money. Keep in mind that all the resorts and tourists areas are double or triple what you would normally pay. 
With a little planning, you’ll be on your way to saving more money than you ever thought possible!

Advertisements

September 25, 2012 - Posted by | Budgeting, Money Management | , , , , , , , ,

4 Comments »

  1. […] hard to avoid those things that keep you from saving. If you are fond of buying shoes even if you don’t really need them, try very hard to stay […]

    Pingback by How to Save Money and Avoid Temptations « D' Finance Bench | September 25, 2012 | Reply

  2. […] habits, current job and house location, cost of living, payables and loans determines your level of budgeting needs. Starting to take charge of your finances is one sure way of becoming successful in a field […]

    Pingback by TAKE CHARGE OF YOUR FINANCES: TIPS ON BUDGETING « D' Finance Bench | September 26, 2012 | Reply

  3. […] an interest-free classification of loan which is typically awarded for those people who needs intensive financial rescue. This type of loan is popular in Northern Ireland, England, Scotland and Wales.You will need to […]

    Pingback by Crises Loans Quick Facts « D' Finance Bench | September 26, 2012 | Reply

  4. […] bills, and there is never any left over for special purchases or holidays. To get control of your household spending and start saving you will need to set up a household […]

    Pingback by Easy Household Budgeting Strategies « D' Finance Bench | September 29, 2012 | Reply


Interact and Ask Questions

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s