Seven cardinal sins of budgeting

We are all to familiar with the situation where budgeting just does not work for us. While we may refer to unique  personal circumstances which lead to the budgets not working for us, the reasons are actually quite simple. These are the cardinal sins of over and under budgeting which lead to budgets not working for us.


To avoid situations where our budgets don't work for us we must avoid these cardinal sins of budgeting

1. Spendings = Under-estimate
2. One-off expenses = Not planned for
3. Emergency expenses = Not planned for
4. Unpaid bills = Under-estimate
5. Income = Overestimate
6. Savings = Overestimate
7. Income from assets = Overestimate

These cardinal sins are equally relevant for an individual as they are for a nation.