Friday, January 30, 2009

Why Budgeting Often Fails

Budgeting is a money management tool that shows you what money you need to make ends meet, live comfortably, and increase your wealth.

In tracking your money, you found out what you have now and what you can reasonably expect to earn. In tracking your spending, you found out what your typical pattern of spending is.

Here are some of the reasons why budgeting often fails.
  1. Failure to prioritize expenses.
  2. Failure to budget practically for normal out-of-pocket expenses like groceries and gas.
  3. Failure to plan for the unexpected.
  4. Failure to include quarterly or annual expenses.
  5. Spending more money than you pocket.

No comments:

ShoutMix chat widget