Are You Sabotaging Your Own Budget?

by | May 2, 2012 | Personal Finance

Breaking the Budget BankYou’ve tried to make a budget and stick to it, recording your expenses and income on a spreadsheet and keeping track of your spending. However, you still seem to always end up with more month than money.

Where does it all go and what are you missing?

Budgets are not easy to keep and there are many things that you could be doing which are unintentionally ruining your best laid plans. Here are a few of the top things which can get in the way of your goal to save money:

Shopping When Hungry

If you are in the habit of heading to the supermarket with a grumbling tummy, stop right now.

Numerous studies have shown that we will buy more food when we are hungry and we are also more susceptible to putting junk food and other expensive treats in our shopping carts.

Instead, head to the store with a clear list of what you need and have a healthy snack first.

Being ATM Happy

If you are in the habit of taking money out of an ATM several times per week, this can be a factor which is damaging your budget.

One reason is because if you are taking out $20 here and there, it is easy to lose track of how much you are spending.

Also, if you are making withdrawals from ATMs which do not belong to your bank you will be dinged with a fee every time and these can really add up.

Instead, try to withdraw enough cash for the week and budget it so that it lasts. This will also help you spend less because you will actually see the money disappearing from your wallet.

Paying Unnecessary Fees

One of the things which could be sabotaging your budget are fees which, with a little bit of attention and diligence, you could have avoided in the first place.

These include late payment fees, transfer fees, overdraft fees, cash advance fees, and even overdue library fees.

You have enough things that you must pay for, so why waste extra money on fees that you can avoid?

Be organized to keep up with all of your due dates and bank statements so that you aren’t being nickel and dimed when you don’t need to be.

If you have realized that one of these habits is sabotaging your budget, don’t worry.

Now that you are aware of it you will be able to adjust your behaviors and get closer to your goal.