Running a home is hard work because there is plenty of responsibility. From taking care of the kids to putting dinner on the table, homeowners have it all to do. Probably the most important responsibility is making sure there is enough money to go around at all times. Sadly, this is one area where grown-ups tend to slack off and make mistakes. Because money doesn’t grow on trees, these errors can be catastrophic to the family’s finances. Of course, it is possible to fix your errors but to do that you have to understand the mistakes first.
To help, here are the common ones that adults make on a regular basis.
Going Over the Festive Budget
Christmas is here which means the purse strings are going to take a battering. In fairness, it is expected because it is a one-off expense that happens annually. Therefore, as long as you have a budget, there should not be a lump of coal in anyone’s stocking! However, when the festive spirit hits, it is hard not to get carried away in the moment. As a parent or grandparent, you want to give your loved ones everything they want and more on the 25th, which is when budgets are destroyed. Remember that life goes on after December and you need money to pay the bills.
You are going to have people around for dinner and drinks a lot this month, and you want to impress. Therefore, you will find flaws in every single room in the house without fail. In addition, the panic will make you feel as if you have to get the paint brushes out ASAP and touch up the walls. However, renovations, even the smallest ones, can cost a small fortune at this time of year. Rather than changing the furniture or ripping up the carpet, you should leave the interior until the New Year. Then, your budget should be bigger.
Not maintaining your receipts does not cost money, if anything, it saves it in the short-term. However, it does put you in trouble with the law if you cannot provide proof of purchase. Should the government sanction a full audit, there could be a hefty fine or even a jail sentence in the not-too-distant future. Nowadays, keeping financial records is not difficult thanks to Paystub generator free services and bookkeepers. Either an automated service or a professional will do it for you, but you have to hire them and organize your receipts.
Sometimes, there is not enough money to account for your debts. Sadly, this will only incur additional interest and fees and extend the arrears. Even when money is tight, the bills have to come first or else the situation will spiral out of control. You may have a payment plan with one creditor and have a 0% promotion with another. Whatever you do, just ensure there is money in the pot at the end of the month. Otherwise, the perpetual cycle of owing money will continue forever.
If you fix these mistakes, there will be much more to go around for Christmas.