Mistake #1 Handling money without setting up a budget
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Seriously! You won’t be able to make much progress on your money dreams when you are just spending what’s in the account without having a focused plan for your money.
Once you start to follow a prioritized bare bones budget every month, it’s easy to see where the income needs to go and how much money you need to pay all bills. Then you can see what’s leftover to put into savings or paying down debt.
A budget is a blueprint that guarantees there is always enough money for the essentials and sets up a strong foundation to build money dreams over time.
Mistake #2 Not following a budget when there’s enough (or more than enough) money coming in
Often when there is more than enough money coming in and your bills are easily paid. It is common to relax and start spending more freely.
However, it is actually more important to follow a budget in the months where there is a surplus, than it is when money is tight.
Surplus months are the powerhouse to balance out the income by putting money aside for the lean months. They are also a great tool to paying off debt or building savings quickly.
Simple Fix: Continue following your budget every month, especially when there's a little extra. Use the extra towards your money dreams.
Mistake #3 Depending only on one source of income
When you want to give yourself a little more financial margin or have a dream to pay off debt, depending on just one source of income can actually hinder how quickly you are able to get ahead.
Having a variable income for years, I have seen first hand how important multiple streams of income is and what a big help it is to balance out those really tight months.
Diversifying your income will give the ability to earn more and have large chunks to add to reaching your money dream even faster.
You can have a side hustle or make and sell something in your spare time to earn extra money.
Simple Fix: Start adding income streams with a side hustle.
The final mistake is the most severe...
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- Successful Budget Tips Series
Hi! I’m Charissa. I’m on a mission to help hardworking women overcome money struggles and gain financial peace with a Biblical perspective so they can have the freedom to impact their families and communities. Ready to make some changes that will impact your finances in 2020? Click here to get a free worksheet to help you make it happen!