MONEY MATTERS

AVOID THESE EPIC MISSTEPS WHEN CREATING YOUR BUDGET

Q: My wife and I have been spending too much money each month. As a remedy, we are attempting to create our ?rst budget. We want to avoid the common mistakes that ?rst-time budgeters commonly make. Can you ?ll us in on what to avoid?

A: Congratulations on taking control of your spending! Yes, many errors are common in most attempts to create a budget.

This is true whether it’s your ?rst budget or your 10th.

Watch for these common budgeting blunders:

1. Failing to have an emergency fund. Unexpected expenses can blow your budget. Building a significant car repair into your budget is impossible, but you can have the money set aside to protect your budget from such occurrences.

2. Need to track your expenses. After you make a budget, you still have to follow everything to see how well you’re sticking to it.

3. Not having enough ?exibility. You’ll have to spend some months more in some categories and less in others.

4. Not being realistic. You can’t feed a family of ?ve on $100 a month.

5. Trying to make a budget without your spouse. Money is already a common source of friction in a marriage. You’ll be frustrated, and your spouse will feel like they are being controlled.

6. Not being able to say ‘no.’ Saying ‘yes’ too much will destroy any budget. You’ll have to take a pass on some opportunities to go out for co?ee, dinner, drinks, or outings with your friends.

7. Not having any fun. If your budget is so tight that you’re miserable, you probably won’t stick with it. Budget a small amount of money for a?ordable entertainment.

8. Leaving out the annual expenses. These take more work to remember. Christmas presents and clothes for school are two examples.

9. Letting the ATM eat your budget $3 at a time. Please look for a bank or account where you can easily access your money for free.

Avoid these mistakes, and your budget is much more likely to be a big success!