How to avoid common mistakes in budget planning?

How to avoid common mistakes in budget planning?

Successful financial management begins with competent planning. Here are some tips to avoid common mistakes:

Be realistic about your income.
Don't plan a budget based only on expected bonuses or unstable sources of income. Consider only guaranteed earnings.

No financial goals.
Set clear financial goals so you know what you're aiming for. This motivates and helps keep the budget under control.

Lack of airbag.
Provide yourself with a reserve fund in case of unforeseen circumstances. Experts recommend having at least 3-6 months of expenses in reserve.

Ignoring small expenses.
Small purchases can add up and become a significant burden on your budget. Track even small expenses.

Consider unexpected expenses.
Always set aside a reserve for emergencies such as appliance repairs or medical expenses.