Head of Product Operations at Digit
Pinching pennies can be tough, but there are common mishaps that make it even harder. Snigdha Kumar, head of product operations at Digit, tells us which ones to avoid to maximize our balance. And Snigdha has some words of wisdom if ever we fall off the wagon: “Budgeting is a marathon and not a sprint, so it’s ok if you go off course a bit. As long as you get back at it again, you can continue pushing towards your goals.” Keep reading to see what not to do as a budget baller:
What budgeting mistakes should we avoid at all costs?
1. Not regularly tracking your expenses. Budgeting is all about setting a goal and continuously tracking your expenses. If you set a goal and don’t regularly check in on your planned vs. real expenses, then you won’t know the progress. Tracking your expenses can also help identify that extra subscription service you forgot to cancel or an incorrect fee on your credit card that you can now dispute.
How to easily track your monthly expenses.
2. Not automating your bills and savings. Automating your monthly bills and savings takes the money out of your spending budget and gives you a “safe to spend” balance for the month. By paying yourself first, you take out the temptation to overspend, miss your bills, or not save for your future. This might feel hard at first, especially given the high inflation raging through the US right now, but there are apps like Digit that can help you automate your savings and bills without it impacting your lifestyle too much.
How to automate your accounts.
3. Not being flexible with your goals. Staying flexible throughout the process helps you see the big picture. Keep revising your goals based on your latest financial context. You may achieve some goals and find that others just don’t fit your needs any longer.
How to practice financial flexibility.