Quick Budget Fixes

Are your finances suffering because your budgeting is lacking? While there is no one right way to budget, it’s sole purpose is to provide all the information necessary to help you make smarter spending choices. If your budget is not yielding the expected results follow these steps below and get your budget focused and your spending under control.

Consult the Pros

One of the biggest reasons budgeting can be difficult is when it’s pieced together in a “do-it-yourself” manner. Schedule a meeting with your financial advisor. Go over all of your expenses with them and try and figure out where the problems might be. What is working for and what isn’t. Professional guidance will get you on the path to financial success fast.

Unrealistic Planning

It has been said to dress for the job you want, not the job you have. Unfortunately, this saying does not apply to creating a budget. If your budget cuts back all of your spending, most of the time the result is not more saving, it’s just spending that isn’t accounted for in the budget. If the budget is consistently broken, there is no point in having a budget in the first place. Spending is a part of life, just account for it properly, and stay within your means. On the other hand, overspending is just as big, if not a bigger problem when it comes to budgeting. So make sure that your expenses are accurate and based on your income. Don’t try and save all of your money, and at the same time, don’t spend it all either. Stick to your plan.

Missing Expenses

Automating bill payments is a great way to stay on track with expenses, avoid late fees, and sometimes even receive a slight discount. Unfortunately, this set it and forget it type of bill pay can’t actually be completely ignored. Once you’re not physically paying for something it is easy to forget all about that money. But that is money that needs to be tracked in order to stay within the budget and balance your books at the end of the month and year. Once you enroll in an autopay, set a reminder, or better yet, spend a half hour thoroughly reading over your credit card statements before you pay them each month to ensure that you know where every cent is going.

Irregular Expenses

These can feel devastating and sneak up on you so easily. An unexpected car insurance bill, a large holiday expense, a medical bill. Any expense that doesn’t happen with regularity can throw a wrench into the budget, be hard to account for and ruin the whole system in place. Luckily, there is a simple solution. Take last year and add up all of those irregular expenses: the vacation, birthday party, extra car payment, whatever you unexpectedly spent on and divide that number by 12. It’s not the easiest thing to do, but if you can save that money each month, you won’t get hurt or surprised by the next irregular expense that occurs.

Everyone talks about the importance of budgeting, but rarely are people taught how to do it effectively. Speak with your financial planner and let them help you. Find the leaks in your boat and learn how to seal them up. It’s not difficult once you recognize the problem. Seek it out, fix it, and move forward successfully.