Budgeting the money we make is a significant skill. But, there is still a large gap between what we do to save money, and what we actually do with it. Dinner and drinks with friends, going to the movies, child expenses — if you got them — and those new pair of shoes you just can’t possibly live without; can take the money you were trying to save every month and make it vanish into thin air. Budgeting is by far the most loathed and neglected chore of personal finance, and a recent survey by County Financial shows the stark differences in people who claim to live within their means, and those who really do.
The survey originally appeared to show only a minority of people with out-of-control spending, but when they were asked more pointedly about what they did with their income, the perception gap emerged. Many people perceived to save more money than they really did. One of the biggest hinderances to saving money was that people were failing to utilize a system for budgeting. How can you expect yourself to save, without a concrete plan in place? Half of the participants said their monthly spending exceeds their income “at least a few months” out of the year. Which means they’re using savings, credit cards, or adjusting their spending habits the following month, to make things work.
There are three strategies displayed in this infographic created by Lemon that can help you budget your money more effectively. Set realistic goals, track your spending, and stop making excuses. Learn more about these strategies below to not let mental blind spots sabotage your budget.
via: Lemon
