Creating a budget is important for financial planning, but mistakes can still happen. ACCC offers these 5 tips for fixing budgeting errors:
- Track your expenses.
Your budget needs to be realistic when it comes to how much you spend on food, clothes, travel, etc. Track your expenses for a month to get an accurate number.
- Remember yearly expenses.
Remember annual or semi-annual expenses, such as doctor’s appointments. Incorporate those expenses into your budget.
- Make sure your partner is on the same page.
Talk to your spouse early on in your relationship to make sure you can both agree on a budget.
- Have an emergency fund.
You don’t want an unexpected event, such as a medical expense or a broken-down car, to wreck your budget. Have 3 to 6 months’ worth of expenses in your emergency fund.
- Seek help.
Financial advisors can help you come up with a budget and an overall financial plan if you are unsure of where to start.