Firstly, do you have a budget? There are many out there you can download to help you organize a good budget (weekly and monthly). If you want to gain control over your finances, you need a budget.
Now, if you have a budget and you’re sticking to it each week – good for you! I know however, most of us are tempted to stray from our financial limits from time to time. Hey, we’re human right? So here are some typical ways we mess up our budget.
- Use your debit card for every purchase. Every time you use your debit card to make a withdrawal you are dinged a service charge anywhere from $1.50 to $3.00. Those charges add up and will considerably eat into your monthly budget. It’s better to take out cash you intend on spending for the week and keep to that limit. Don’t pay for unnecessary service fees when you’re buying your weekly supply of groceries, a pack of gum or your lunch.
- Emergency fund – Do you have one? If you’ve lived in a home for over ten years you know you’ll be paying for a new roof any time. If you own a car, well, let’s face it, you NEED an emergency fund for unexpected car repairs. If you don’t save a few dollars a month, those little repair surprises will bite your budget.
- Shopping without a list. If you’re like me, I make my weekly grocery list and try very hard to stick to it. TIP: explain to your children before you go to the store that you have to stick to your budget and you can’t afford to buy that nerf ball they’ve seen on TV, or that cool toy that blows coloured bubbles. These unexpected “treats” will mess up your budget. To make things harder for us shoe string shoppers, many grocery stores go beyond selling produce. Attractive displays of decor accessories, clothing, and toys add to your list of temptations. You may ask yourself, “won’t that nice blue and yellow table cover look great on my table for dinner tonight? What about that linen shirt, it’s perfect for my dinner party!” Try not to be trapped by the allure. On the other hand, if you can afford a little “treat” once in a while, buy yourself or your child something. Remember, we’re only human!
- Know what is in your wallet and stick to that. Account for how much cash you have to spend in a week and record where you spend it. If you forget how much you took out of your bank and spend it on various items you’ve already forgotten about, you’ll mess with your budget. As the Greeks say, know thyself!
- Know the fees you’re paying. If you own a credit card, a retail card, a bank account or any form of credit, you are paying fees. Check your plans. Do you need all the services that come with the credit agreement? Are you paying fees for services you don’t need? These can eat into your budget more than you think.
Everyone should make a budget. It can help you save and pay off debt. Your budget can change as often as you need it to. For a solid budget plan, you can download ours. If you would like one of our counselors to assess your finances and help you make a budget, give us a call at 1-866-USE-OCCA. We can help!.
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