7 Budgeting Mistakes to Avoid


budgeting

Budgeting is crucial to efficient and effective financial management. When we don’t budget, we end up either squandering money or missing out on paying for important and/or time sensitive transactions.

Note that the lack of budgeting is the very reason why the poor remain poor–because they don’t take time to think about what they want and research on how much it will cost.

The question is, how will you know what to spend your money on if you don’t budget? Remember that there is more to living than paying bills. Therefore, take control of your finances and establish budgeting as a mandatory act.

Below are 7 budgeting mistakes to avoid.

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Mistake 1:

When you don’t stick to your savings plan, or when you don’t have a savings plan. In order to achieve financial freedom putting away money as savings to either invest or fall back on in hard times, should be part of the game plan. If you don’t budget for your savings, you are basically rendering yourself vulnerable for financial disaster.

Mistake 2:

When you don’t update your budget plan:

It’s important to update your spending plan so that you are aware of what’s going on periodically. Get a note book, or download an app on your phone (www.everyDollar.com is a good one)) and use these tools to periodically update your budget.

Mistake 3:

When you underestimate or overestimate how much you spend: To avoid this mistake evaluate your previous month’s expenses to use as reference for your spending patterns.

Mistake 4:

When you don’t have a budget: When you don’t have a budget how will you know much to save or what to spend on?

Mistake 5:

When you don’t communicate with your spouse or people in your household about your budget standards: This applies if you have a family. You need to let your spouse know about your budgeting plans so that they spend within its limits.

Mistake 6:

When you only budget once in a while: You have to be consistent with your budget plans. It is an ongoing process, and the good news is that it gets easier with time.

Mistake 7:

Lack of budgeting before your payday: Getting money before you create a spending plan can be dangerous.  Note that by the time you create the plan, half the money will be gone on expenses that can not wait for you to decide whether you need a budget or not.

Note that budgeting is a healthy financial habit that you should embrace. Doing it right will make all the difference, and having a success infused mindset is the starting point.

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Looking to get more organized with your life and finances, check out my book, Do Not Force It, Tap The Good

Tap The Good

Dr. Jacinta Mpalyenkana, PHD, MBA is a counselor, transformational coach, corporate trainer, published author and professional speaker. For more about her, please check out http://www.tapthegood.com

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How Logical are we? And what has Logic got to do With our Businesses?


Decision making

As human beings, we all like to think that we are logical especially when we are making decisions. We like to think that we scrutinize and evaluate the information we are given and then ultimately make logical decisions based on our evaluations. However, in reality, human beings very rarely make decisions based on logic alone. Most of the time, our decision-making processes take place without us even realizing it. Based on the fact that we are living in the age of information, there is just not enough time for us to really evaluate every single bit of information that we perceive, and then make decisions accordingly.

Mind

Although this might sound corny, but thinking is hard work. That’s why most people don’t really think. If we are to think about everything that has to be thought about all the time, then we expose ourselves to exhaustion. Apparently, we have to think about what we are going to wear, what to do for the day, at work, what we are going to do with our lives, how we are going to achieve our goals, our challenges, victories, relatives, businesses, etc. Now, that’s a lot to take in. There are so many things in life to think about. And to ponder on every single decision that we are going to make is almost impossible. Consequently, we’ve developed mental shortcuts that appear as preconceived ideas about what we believe or how we believe certain things should be.

Business

What has this got to with your business or even the art of persuasion? Ponder on these concepts. 🙂

In my new book that’s almost done, Communicate Your Way to The Bank: Master the Art of Persuasion, Positively Influence others, Increase Sales, and Stand out in Your Crowd, among other thingsI go into depth to explain how the mind works, and what triggers people to make especially buying decisions. I will be posting more tips and details about the book as the release date gets close.

Persuasion 2

In the interim, have a success-filled rest of the week. Don’t forget to take advantage of the 30 minutes complimentary business coaching session by signing up on my website at http://www.tapthegood.com.

love and light

Dr. Jacinta Mpalyenkana, Ph.D, MBA

Author, Speaker, Counselor / Success Coach

http://www.tapthegood.com

author@tapthegood.com