Common household budget mistakes

Balancing your monthly budget can prove difficult, especially if you’re juggling a lot of payments at different times of the month. You have to worry about mortgage payments, car loans, credit card payments, utilities, gas, and groceries. And sometimes when you feel like you’re making progress, you find out that you’ve overspent. Here are some common household budgeting mistakes that you need to prevent making so you can save more money.

Spending more than what you make This is basic math but some people can’t seem to figure this out. Do not spend more than what you make collectively in your household. Break down every item that you pay for throughout the month and see if you are spending too much. If this is primarily your problem, you can either find more work or a new source of additional income, or refinance your home if your mortgage is too expensive.

Making late payments If you fall behind on your payments, you’re more likely to get slapped with a fine. These things add up with time and with the number of bills you pay late. Get caught up with your bills one at a time to reduce paying for unwanted late fees.

Using loans to pay for bills If you use your credit card to pay off your other loans, it’s only going to make things worse. Sure, it’s more convenient at times, but interest rates could leave you spending thousands more each year.

I’m Douglas A. Grady, and I’ve been a financial advisor for more than 15 years. I’ve been in the industry for more than 15 years and the first advice I give to my clients is to start saving more money. I hold office in Pasadena, California, and my job places emphasis on personal finances. For more on my work, visit this Twitter account.