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December 5, 2010 / Kitten

Budgeting to High of an Income

I will state this now before anyone gets the wrong idea. I am not the best financial adviser out there. I don’t have any degrees or anything like it. All I have is advice from experience. I learn something about money and I like to pass it on, that is all.

So, with this said, even I make mistakes.

My husband knew he was getting a bonus on his upcoming paycheck. He even knew the exact amount of it. But, he had budgeted for overtime that he did not receive, so our paycheck was actually $14.00 lower than it should have been!

Yes, it’s not a mind blowing mistake, but it’s still a mistake none the less. You should always under budget your income. Make your income lower then what you really think it will be until you actually know for a fact how much the exact sum will be. Do this, and then over budget on your bills and categories. This ensures that in the worst case scenario, you will still be protected!

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