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What are the Signs of a Budget that Needs Altered?

What are the Signs of a Budget that Needs Altered?

In a perfect world, you would never have to change your budget. It would remain the same (100 percent effective), month after month.

In the real world, however, there are times when you need to alter your budget to better suit your income, expenses, and goals.

Here are three signs of a budget that needs altered:

1. Continue to spend more than you have budgeted for. This may happen from time to time, but if it becomes habit you need to make a change.

It’s called a budget for a reason. You need to stay within the spending limit in each category. If you don’t, review what’s going wrong and then adjust the numbers accordingly.

2. You are now earning more money. While this may result in a change, it’s something you should be excited about. If you are now earning more money, it means that your budget can be adjusted.

But remember this: earning more does not mean you have to spend more. Instead, you should consider putting this excess cash towards paying down debt or reaching your savings goals.

3. Your expenses have changed (for the better or worse). It feels good when an expense category is reduced for any reason. Conversely, it doesn’t feel so great when a category experiences an increase.

If any expense category changes, your budget should do the same.

It goes without saying that your budget will not require a full revamp on a regular basis, but there will be times when a few adjustments are necessary to keep you on track. 

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Comments 1

Frank on Thursday, 11 February 2016 17:45

As discussed throughout this website, your budget has to be flexible and dynamic. Each month your financial situation may change and your budget needs to be flexible so you can adapt to any changes. It is always recommended to review your budget each month or at least each quarter to make sure your budget is useful.

As discussed throughout this website, your budget has to be flexible and dynamic. Each month your financial situation may change and your budget needs to be flexible so you can adapt to any changes. It is always recommended to review your budget each month or at least each quarter to make sure your budget is useful.
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Monday, 14 October 2019

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