5 Budgeting Mistakes That Could Wreck Your Finances

Have you ever invited friends over to talk about budgets? Of course not. No one does that, because budgets are boring. But like many boring things -- vacuuming and doing laundry come to mind -- budgeting is important. Most people find it impossible to reach their financial goals without a budget.

Even so, household budgeting isn't something everyone does. A 2016 study by U.S. Bank revealed that only 41% of Americans actually follow a budget. That number might be less daunting if Americans were fond of keeping large emergency funds on hand. But the opposite is true. More than two-thirds of Americans have no savings at all, according to a 2017 survey by GOBankingRates.

Combine a lack of discipline around budgeting with no cash savings, and you'll struggle financially every time an unexpected expense arises. You might end up borrowing to get by, and taking on debt makes it even harder to budget and save in the future.

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Source Fool.com