4. Looking in the Wrong Direction
Budgeting systems that require you to enter and maintain historical financial data that is then used to generate wonderful graphs and tables showing what happened in the past are basically time wasters. If you have to keep records for tax purposes that is a pity because there is very little that this can do to help you improve your finances.
Recording the past will not change your future! In fact it will most likely help to ensure you will achieve more of the same. If you have been a habitual record keeper constantly entering numbers into your computer hoping this will keep you on track I have some bad news for you.
At the end of the year when you see how much you spent on coffee or clothes or food (or whatever) and you say next year I am going to spend less on ‘xxx’… Well guess what! The chance that you will spend less is somewhere between none and buckleys!
I liken this whole record keeping concept to trying to drive down the road while constantly watching in the rear vision mirror. You will crash at the first corner!
You need to be looking forward to get to where you want to go! My whole perspective changed when I realised this fact and it was then that I was able to move forwards.
Simply Budgets is the tool I created so I could see into the future to overcome the problem I realised was holding me back and it has now helped around 28,000 families de-stress their lives.
If you feel like number 4 is causing you grief, have a look at the info at http://simplybudgets.com.au/simplybudgets/