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What with all of the financial software programs, smart phone apps and websites now available there are certainly a lot of helpful budgeting tools to choose from. It's important to understand that the software or app that works for one person may not be right for you. Before choosing one, you should compare several different options and then choose the program that you feel most comfortable with. As an example of this one financial expert says that about 3/4ths of the clients he sees actually hate Mint.com. He noted that they choose it because it's the one they've most often heard of but then try it, don't like it and forget about it. The key here is to find a tracking system that you will feel comfortable using day in and day out.
#7. Failing to adjust your variable expenses
When you get right down to it the objective of budgeting is to help you change your spending habits. Even if you're very happy with the budget you've created it's important to review your variable expenses from time to time to make sure that your spending is what you had anticipated. For example, if you're not careful you might find that you're spending too much on some of your categories such as shopping, entertainment, and recreation. If you find this is to be the case you will need to make some adjustments because if not you'll just continue overspending every month. This means you will probably have to juggle your numbers by reducing your spending in some other categories to cover those where you’ve been overspending and it's critical you do this.
#8. Depriving yourself
When you get serious about budgeting and reducing your spending it doesn't mean you have to sit home night after night feeling bored. Don't be too harsh on yourself. We understand that everyone needs to blow off some steam occasionally and it's not irresponsible to have a little fun with your money. No matter how good a budget you developed it won't work long-term if you're too strict and don't allow yourself to have some fun from time to time even if it’s as small as treating yourself to that drive-through coffee.
#9. Neglecting those irregular expenses
We hope that you're definitely budgeting for unexpected expenses like car repairs, home repairs, and gifts. But there are also some irregular expenses you need to budget for. These are expenses happen yearly such as an annual auto insurance bill, property tax bill or homeowners association dues. One financial expert says the best way to build these into your budget is to take the total amount, divide it by 12 and then add this amount to your monthly budget. Naturally, you'll want to actually stick the money into a savings account so it will be there when those annual bills arrive.