Huge Budgeting Mistakes People Make

October 30, 2020 | Emma Frost

budgeting mistakes and blunders

 

Budgeting and managing your personal finances are a major part of life. Despite the importance of a budget, not many people have one set up. Contrary to popular belief, budgeting does not mean that you have to live like a monk. Rather it is a very useful tool to help you manage your expenses and save for emergencies. It can bring financial stability to your life and give peace of mind.

Budget Blunders You Definitely Should Avoid

Nevertheless, making a budget is just a starting point and not an end in itself. The more difficult part is actually sticking to it! In fact, we’ve probably all made budgeting mistakes at one time or another. Here are just five huge budgeting mistakes people make.

Guessing Their Expenses

Like any financial model, a budget is as good as the inputs it receives. Rather than guesswork, it is much better to tally down your actual monthly expenses. This will give you a more accurate picture of your monthly expenditures. If you are making a budget for the first time, then track all your expenses for a month. There are numerous apps out there that you can use to jot down expenses under various categories and subgroups.

Not Tracking Expenditures

This point expands on the one we made above. To ensure that you actually follow your budget, make sure you track your monthly expenses. This includes little things like buying snacks or paying for parking etc. It is actually the little things that can add up, wreaking havoc on your budget. If you have to spend more on a category than what you actually budgeted for, then it might be time to either cut back or increase the budget.

The Budget Doesn’t Change

This first budget you make isn’t going to be set in stone. Your life and goals are ever-evolving; salary bumps, emergencies, and lifestyle changes can make your current budget obsolete. But even if life is going smoothly, it might be best to keep on reviewing and updating your budget. You can set up quarterly reviews, which will give you enough data to analyze your budget and make changes if necessary.

No Emergency Fund Set Up

Life has a way of being unexpected or even downright cruel at times. Financial emergencies like healthcare, job loss, or the death of a spouse can put financial and mental stress on us. According to a 2018 survey, nearly 39% of Americans cannot cover a $400 financial emergency. This makes it all the more important to have an emergency fund. Work in enough room in your budget to set aside for your emergency fund can help provide a cushion in times of stress.

Not Knowing About Title Loans

While not having an emergency fund set up is a big budget blunder, another one is not knowing about getting cash for your car title – or a title loan. This loan is set up to help you when you are going through tough, unexpected emergencies. So why wouldn’t you look into it? If only to keep the information in your back pocket.

If you are still wondering what a title loan is, it’s easy. A title loan is a secured loan that uses your vehicle’s title as collateral. No matter what the vehicle – a truck, SUV, car, or even a motorcycle – as long as the title is in your name and free of prior loans, you can use it. And the best part? You can check to see if you and your vehicle qualify absolutely free here at Carolina Title Loans.

 

budgeting mistakes common

 

How Do I Find Title Loans In South Carolina?

Wondering where you could get a title loan? Well, all around South Carolina, of course! Carolina Title Loans has a location all over South Carolina for you to visit. But if coming to the store isn’t doable, you can have us come to you! You read that correctly. You could choose anywhere – even your own home – and we will come meet you! Just let us know where when you speak to us over the phone. The rest of the process is the same, so you will still have paperwork to fill out and mandatory items to have with you.

Now that you know what it is, you have to know about our quick and easy process. We make sure it is fast but still thorough so you fully understand what you are getting into.

How Do I Get A Title Loan?

As I said, our process is easy and convenient. It starts with you filling out our online form. Once the form is filled out and submitted, your next step is to wait by your phone. As soon as we have your form, a loan associate from your nearest location will give you a call. During this call, you will learn what you have to do next and what mandatory items you have to bring in. This is also when you’ll give us a location to meet you – if that’s what you want.

Whether we meet you or you come to us, the rest of the process is the same. You will meet with a loan representative who will go over the loan application, your mandatory items, and perform a vehicle inspection. The mandatory items are very easy – chances are you already travel with them. All you need is your driver’s license or ID, your vehicle’s title, and the vehicle.

The vehicle is for a quick vehicle inspection that’ll determine how much you qualify for. You will also sign the loan agreement if you agree with the terms. Then, if you are approved, you will either have the cash right there or in your account the next bank business day.

Advantages Of Title Loans

Now that you know what a title loan is and how to get one, here’s why you should!

  • Unlike other traditional loans, a poor credit score will not affect your chances of getting approved.
  • You get to keep your vehicle while repaying the loan. Just make sure to stick to the repayment schedule.
  • You can use your title cash for emergencies and unexpected situations.
  • You will find out if you’ve been approved within minutes of applying.

Avoid These Budget Blunders At All Costs

Now that you know at least some budgeting mistakes, you can try avoiding them. Of course, you are bound to make some mistakes. When those happen, just take your time to start all over until the budget works for you.