• Mistakes You Are Making With Your Budget

  • by Kristen Curzytek

If you are looking to get a hold on your finances the best thing you can do is create a budget. If you have created a budget in the past but have yet to make any progress in saving money then you may be doing a few things wrong when it comes to your budget. Here are some helpful tips on some mistakes you may be making with your budget.

Not being realistic with your budget

The first step you need to do for creating a sound budget is to determine what your budget is. You must be realistic with yourself about your budget. What can you afford? What can you not afford?

Determining which things are a need and what is a want

While most days I would say my fancy $5 coffee is a need it is actually a want. Determining what you really need versus what you really want are really two totally different things.  But making a few adjustments in your determining the things you really need versus what you really need you find extra money grantee.

Not tracking your budget

Having a budget and not adequately keeping track of your sending you are simply just wasting your time. Keeping track of each penny you are sending you see exactly where your money is going. You can see where you send too much which you can cut back on and easily start saving that money.

Living beyond your means

If you do happen to write down your budget and do not follow what your limits are for your budget you are living beyond your means. Relaying constantly on credit cards to pay for things is living beyond your means.

Not having a emergency fund

For those who are working an emergency fund should cover at least 3 months of your bills if something were to happen to you and couldn’t work or lost your job. If you are retired you should have a different kind of emergency fund that would be able to cover a large expense like a stay in the hospital or an unexpected expense.

Ignoring debt

No one likes to have debt. It hangs over our head and is always in the back of our minds. However, ignoring debt will not make it go away.

Not asking for help

There should be no shame in looking for professional help from a budget specialist or a financial advisor. These professionals can give you sound advice to eliminate debt, and create a budget that works for you and your goals. Even if you are financially sound, it is a good idea to seek help from a professional to make sure your financial strategy is making the most sense for you.

Not checking interest rates

While credit cards can lead to reckless spending you should have a few credit cards for emergencies. Check with your credit card companies at least twice a year about your interest rate. Typically if you pay your bill on time every month and pay off the balance every month your credit card companies see you as a good customer. If you call your credit card companies they will look in to lowering your interest rate saving you money over time.

Not checking your credit

Checking your credit at least once a year can save you not only your identity but also money in the long run. Having a bad credit score can lead to higher interest rates and being denied credit.

Creating a budget and sticking to it takes a lot of dedication and hard work. Once you establish your budget it will become easier to stick to. But if you are unsure your budget will get you through your retirement years, a reverse mortgage could be the answer.

A reverse mortgage is a financial tool that allows people over the age of 62 the ability to access the equity in their home. If you are over the age of 62 the program can help you live the retirement you want to live. A reverse mortgage eliminates your current mortgage (if you have one) and if you have any additional equity you can use it for anything you want. That equity you receive is in the tax-free cash which you can choose to receive in a lump sum, monthly payments, a line of credit or a combination of these. Currently there are no income or credit requirements for a reverse mortgage and you are never required to make a payment as long as you live in your home.


Kristen Curzytek is a writer for the One Reverse Mortgage blog. One Reverse Mortgage is the largest retail reverse mortgage lender in America. Check out or reverse mortgage calculator to see how much tax-free cash you can qualify for. Or give us a call at (800)401-8114 to talk to one of our licensed professionals. They can discuss your financial situation with you and determine if a reverse mortgage makes sense for you and your financial goals.