Flaws In Your Personal Budget Plan

Keeping track of expenses is hard for some people. They think they don’t have the time or they simply feel that they have enough money to go around and they don’t worry about a few extra expenses here and there. The truth is that most who are millionaires are such because they watch every single penny that comes in and out, and they avoid reckless spending. You have to come up with your own personal budget plan to keep track of everything, and also to know where you may be missing some extra or hidden expenses that may be wiping you out.

A personal budget plan should be rather easy to put together. You list your major expenses and how much you have coming in, and you can see the difference between how much you make and how much you should be making to break even. You can then decide what you can do with your extra money. Do you want to save or invest? How about paying off an old debt that is hanging over your head. If you don’t know how to do this on your own, there are great software programs out there you can use on your computer to make it easier for you.

There are some common mistakes that people make when they are putting together their own personal budget plan, however, that can mean leaking money out of your budget that you don’t see. Some many people wonder where all of their money went and are surprised when they see where their money is really going. There are small things that people do each and every day that drains away valuable cash. These things seem small, but they add up so quickly. See if any of these drains are in your budget.

If you have a bank card, part of your problem may be the fees that you are paying. For one, using an ATM that does not belong to your bank is probably costing you a service charge. It may not seem that two dollars is very much, but add that up over the year and see how much you are really spending. Also, if you regularly overdraw your account, you could be paying up to thirty dollars each time you do this. Do it more than once in a while and you are throwing away tons of money. Dig out your bank statements next time you look at your personal budget plan and see what you can find.

It is other small but repeated expenses like these that are sucking away your extra cash. Cash you could be using for something else. If you buy your coffee each morning instead of making it at home, you are throwing away your money. Things like lunch out each day, buying drinks for friends all the time, and even forgetting to put money in the meter and having to pay fines are all financial drains that put a bigger dent in your budget than you think. Weed out these holes in your personal budget plan and watch the savings add up.