Hello, beautiful people from across the lands. Surprise, surprise looks who fumbling along this debt freedom journey. As I mentioned from the very beginning this is a learn as you go type of journey. I am sharing in real time my progress or the lack thereof toward debt freedom. October flew by! The air is a bit chiller, heating bills are slowing creeping up, and every day is a good day for a pair of boots and a scarf! This month has been a challenge as my money management habits are exposing where improvement is needed. Here are the three mistakes I made that hopefully you already avoid or can learn to start.
Mistake 1: Plan Your Budget BEFORE the Month Begins
Yes, I have been budgeting in the mist of the month adjusting as I go. This is wrong on so many levels. I paid a high price as some demanding bills had to be paid in full leaving me with overspending in certain areas I allocated expenses for. By planning before the month begins it allows you to scan the scene before you act. I have budgeted before the month began in the past but simply listed my expenses not specifying when each one will be paid. Which leads me to my next mistake!
Mistake 2: Designate Each Expense by Paycheck
Depending on your kind of work, income may fluctuate from time to time. Or you may have a consistent pay knowing your paycheck amount down to the cent. By assigning expenses to a specific paycheck it allows you to compare due dates and amounts prioritizing what needs to be paid now and what can wait until next pay. Without late fees of course. Which leads to me to the last and final mistake.
Mistake 3: Pay Attention to Due Dates & Amounts
Routine bills should be no surprise. Rent is due every 1st of the month, car note and car insurance the 16th and so forth. It’s those unplanned and non-reoccurring expenses that can throw you for a loop. Things like medical bills, parking tickets, money for the kid’s book-fair or picture day. It’s important to pay attention to everything that is going out, knowing their due date and how much. Don’t be like me just paying bills off that are within reach just trying to finally be caught up and move on to my Emergency Fund goal. I admit I am a bit anxious to start it. This mistake caused me to land in the negative this month not realizing some expenses could have waited a pay or two!
Recap
• Mistake 1: Plan Budget BEFORE the Month Begins (consistently)
-Projecting your expenses and income before the month begins allows you to prioritize and limits any financial surprises
• Mistake 2: Designate Each Expense by Paycheck
-Compare dates and amounts prioritizing payments minimizing overspending or even under-spending for that pay period. Yes, under-spending can be dangerous! Zero-based budgets can help avoid either from happening.
• Mistake 3: Pay Attention to Dates & Amounts
-As your designating each expense be mindful of the due dates. Especially for unplanned or non-reoccurring expenses like parking tickets, medical bills etc.
I hope reading how I made a bit of a financial mess this month helps you to avoid making one of your own. Have you started your November budget yet? Hurry you still have ONE day if you haven’t! My budget is three pages! I have my very own cute customized budget planner I bought from www.erincondren.com be sure to follow me on Instagram @hopefulreality to see!
Click coupon to get $10 off your purchase! COUPON
Until next time dream, believe and achieve.
