As much as most of us want to believe that money isn’t everything, we need money to pay for almost everything we need in life. The rent, electricity, water, food and almost everything a person or a family needs to survive, all depend on the amount of money they can earn. And budgeting around your income your lifestyle isn’t as easy as it sounds. Doing the simple calculation on paper; summing up the cost of bills and expenses, and subtracting this from the monthly income we earn, is easy. It’s the simplest way of knowing how much you have to spare to spend. But actually committing to this simple calculation is the difficult part. With the ease of using debit and credit cards as an alternative to cash, it has made keeping track of the money we spend extremely difficult. And with the continuously growing consumer culture in the country, there’s no surprise that a lot of people are finding themselves struggling to stick to a budget. However, we got to admit that at times we might blow out of our budget and need some fast cash to pay for our credit card bills. Applying with online licensed moneylender Singapore made things fast and hassle free to solve your temporary problem. The truth of the matter is, there are so many shameful reasons why you keep breaking your budget. It’s always best to avoid all the common mistakes we make that may be hindering our chances to earn and save money for our future.
1. Lack of planning
The most common mistakes people make is failing to produce a financial plan. To be able to stick to a budget, you need to first confirm what you spend every month. You need to break down the bills you need to pay for. This includes the amount of money you spend on groceries and utilities. By confirming both what you are paying for and when you need to pay for this, you can already make a simple plan that will compare when you receive your salary, and what money you will spend to sustain everyday life. With the proper planning, you can determine the average amount you need to spend, to guarantee that you do not spend beyond this.
2. Spending more than you can afford
The availability of using credit cards and debit cards to pay for everything makes spending so much easier. You do not have a physical representation of the amount of money you spend, therefore it’s easy to lose track when you are spending too much. Just because you have money in your savings, and credit to spare, doesn’t mean you can actually afford what you buy. It’s important to limit yourself to spending only what you can afford. Making a plan can solve this, and knowing how much money you have to spare each month. If you really want to buy or spend on something that is more expensive than your spare cash, it’s always a good idea to plan ahead and save a certain amount of money every time you get your salary, that will eventually add up to the amount you want to spend. It’s hard to determine when you are overspending, so it’s important to just avoid the entire situation by planning ahead.
3. You are unaware of your obligations
Another big mistake people make that dims their chances of sticking to their budget, is by being oblivious to the obligations they have to pay for. Again this all boils down to financial planning. You have to know what you need to pay for when you need to pay for it, to guarantee that you have the right amount of cash at the time it is due. Being aware of the obligations you have to pay for will help you keep track of your budget every month.
4. You do not pay attention to the economy in your country
The economy of your entire country may not seem like something that severely affects you, but it definitely does. In fact, it affects every person that is living, working, and even just visiting the country. The changes in the economy affect the prices of different consumer products. A small increase in food prices, electricity and water prices, taxes, rent, transportation costs and everything else that you have to pay for, may not seem too big of a change on each individual receipt, but the overall sum of money you need to spend changes significantly. Knowing when there are changes in the economy will help you prepare to either spend more or if you’re lucky when you’ll be spending less. This can help you stick to your budget.
Don’t fall victim to the many shameful reasons why you keep breaking your budget. It’s always better to be smart and organized with your money, then finding yourself in a pit of debt every month, surprised that you actually spent more than you could afford.