February 24, 2017 12:43 pm
Creating a realistic household budget is the best way to keep your finances in check. While there is no formula to creating the perfect budget, there are some budgeting blunders that you can avoid. By following these tips, you can make managing your finances simple and stress free:
Setting a budget that is too tight – Many expenses fluctuate from month to month. By creating a budget that is too strict, you could be setting yourself up for failure. Make sure that your budget is flexible enough to allow for any unexpected expenses.
Forgetting to log expenses – Sticking to your budget is almost impossible if you do not know where your money is going. For this reason, it is important to track every expense no matter how small or large.
Ignoring your savings account – Including a savings contribution, as a monthly expense in your budget is a crucial component to ensure that you are saving money. Many banks allow you to automate a transfer to your savings account on a monthly or weekly basis.
Making your budget too complicated – If your budget is complicated or difficult to keep up with, you are less likely to use it. Try to simplify your budget as much as possible to make it easy to understand and use. There are many apps available that can help you simplify and follow your budget!
Your local Fairway Independent Mortgage Corp. Loan Officer is committed to working with you on your debt-to-income ratio as it pertains to an existing or new home loan. If buying a new home or refinancing your current home is one of your goals, I would love to help! Call me today to set up an appointment. I would be happy to discuss your finances and help you discover which home loan program is right for you.