For those who liked my previous blog on budget planning, here I mention a few more budget planning mistakes that must not be made.
1. Many of us don’t keep a permanent column for savings in our budget. Savings should never be the last option. You should budget them just like every other expense and income. Traditionally speaking, you should at least save 10% of your income. You can choose even a higher number, but make sure that you add it permanently to your budget planner. You should have an automatic direct deposit of your savings from your paycheck account into your savings account, so that even if you forget to deposit the particular savings amount on time, it gets transferred automatically.
2. People usually use their savings accounts in case of emergency. This is another big mistake you make with your personal finances. You should always save some amount for a rainy day separately. You should have room for emergency or rainy-day savings column besides general savings column in your budget planner. You should regularly add some money to this account rather than adding the left-over money to it. This will be your great asset in case of emergency such as job loss, vehicle repair, or unanticipated medical expense.