/This Budget Mistake Could Be Costing You

This Budget Mistake Could Be Costing You

From overdraft fees to late fees, Americans are collectively spending millions of dollars on unnecessary payments.

Avoiding these costly mistakes is possible with a solid budget. However, even people with a budget can make three major budgeting mistakes that could have a negative impact on their financial goals.

Major budgeting mistake number one is not knowing your income. You might know how much you make a year, but that doesn’t factor in taxes, which could cause problems in planning.

“Most people can actually tell you, ‘oh yes, I make let’s say 500 dollars a week’, but they don’t know the exact amount, so this starts their budget off with guessing how much income they bring, so then they guess how much goes out. It is a huge error that they are making,” says Tabatha Thurman, a financial education specialist with the Weokie Federal Credit Union.