Alpha Consumer

Study: Budget for the Year, Not the Month

April 3, 2008 RSS Feed Print

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New research suggests that creating an annual budget instead of a monthly one might be the better way to go, because people tend to more accurately predict their yearly spending, while they underestimate their short-term expenditures. In the study, which involved college students, monthly estimates were off by 29 percent on average while yearly estimates were only 3 percent off their mark.