COMMON BUDGETING MISTAKES Michael Wolfe, Greenville SC

Introduction Michael Wolfe of Greenville, SC, has offered financial

counseling to individuals and organizations for more than 25 years. In that time, Michael Wolfe has helped numerous clients in and around Greenville, SC, understand budgeting strategies and avoid potential pitfalls.

A carefully constructed budget can prove invaluable for individuals and families as they take control of their finances. That said, a simple list of monthly expenses and income is not enough; instead, a budget must be an actively used tool. Many people, for instance, allocate a certain amount for fixed and variable expenses, yet forget to track what they actually spend.

Budgeting Experts recommend a spending tracker software or app that

makes it convenient to record and categorize expenses, including small purchases like a $5 coffee or $10 lunch.

Those developing a budget should also take care to create a contingency plan for large unexpected expenses, such as household or car repairs. This plan may include a special savings account or a base amount that a checking account should always contain in case of emergencies. Similarly, those who create a monthly budget should account for expenses that come up once or a few times per year and pro-rate them into monthly amounts. With all or almost all expenses listed, a household can better assess whether a budget is realistic and practical.