Stopping at a coffee shop every morning can nibble away at your family budget, but some of the worst damage comes from large, luxury expenses.

 

One of the quickest ways to bust the family budget is to buy “too much house” – choosing a home based on the maximum amount you can afford rather than what you really need. The same thing can go with purchasing a new car. Use an online financial calculator to get a better idea of how these major expenses fit into your budget.

 

Spending too much on these things leaves you little wiggle room for everyday costs. Failing to plan ahead for fully predictable expenses, such as auto maintenance and insurance, holiday gifts, routine doctor visits or back-to-school shopping, can make a mess of family finances, too. So can failing to maintain a cash reserve for emergencies, whether it’s the loss of a job or an appliance breakdown.

 

 

 

About the Author
Cam Merritt has been a professional writer and editor since 1992, specializing in articles about personal finance and law. He has contributed to USA Today and the Better Homes and Gardens family of magazines and websites. Merritt has a Bachelor of Arts in journalism from Drake University.

 

This article is provided for general guidance and information. It is not intended as, nor should it be construed to be, legal, financial or other professional advice. Please consult with your attorney or financial advisor to discuss any legal or financial issues involved with credit decisions.

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