11 Mistakes You’re Usually Making When Creating a Budget

You create a way too complex budget that’s impossible to follow.

According to Lauren Anastasio, it’s very hard to stick to a budget that’s way too complex and consuming. You probably think it’s better to create a lot of categories for each thing you purchase in particular and you’re constantly trying to break each one down to the dollar, but that has rarely proved efficient.

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Anastasio recommends sticking to three main categories, such as ‘essentials,’ ‘wants’ and ‘savings’, this way you won’t feel like jumping off the 10th floor every time you need to track your spending. Additionally, if the 50/30/20 method is too consuming for you, you could always try the 80/20 method, suggests Anastasio.

You’re allowed to spend 80% of how much you make every month, while 20% will go to your savings account. If you manage to stick to these coordinates, then your budget is safe and sound.

Make sure to also check: 7 Things That Will Cost Much More After Coronavirus.