So you have started using a budget but it’s not working out! Why not? Well I might have the reason here for you! Here I have 10 reasons why your budget is failing.
I am a huge fan of budgeting. In fact I think everyone such have a budget. Otherwise how do you know where your money is going and how do you tell it where to go? If you just starting your budgeting journey and need tips for categories to add you can check out my post – 5 Things to remember when creating your budget – Including free printable list of categories.
10 Reasons why your budget is failing
1. Your budget is unrealistic
Sometimes when we create our budget we get so excited and create one that is ultimately totally unrealistic. Either it’s too restrictive because for some reason you think you can live only on basic rasions. Alternatively you believe you have a lot more money then you have so your budget numbers are way too high that means over all the budget just won’t work.
2. You don’t update your budget often enough
In the beginning should be updating your budget after every transaction. It might seem like a lot of effort but it is the only way to get you on the track and for you to have exact numbers for your budget.
3. You need to cut down or cut out certain categories
Maybe you are simply spending too much in one area. Maybe you need to cut down your allowed spending in one category or maybe cut it out all together.
4. Maybe everyone isn’t involved or pulling their weight
If your budget is not your own, by this I mean it is a combined family budget, then you need to make sure everyone is doing their part. There is no point in you doing a load of hard work for it just to be undone by your partner. Make sure everyone who is involved with the budget is on the same page.
5. You don’t even try to stick to it
Be real with yourself for a moment. Are you really trying to stick to the budget or is budgeting just a form of procrastination for you? Do make a budget every month just to make yourself feel better but then you just ignore it completely for days or weeks at a time? If this is the case you really need to think about what you are doing and why.
6. Forgetting to account for emergencies
It’s all well and good to account for expenses you know are coming but what about emergencies? Do you have an emergency fund (as recommended by Dave Ramsey), savings or a rainy day fund? What happens if you have an emergency? Will you have to take from your regular budget throwing everything out of whack? You need to make a money plan for emergencies too.
7. Forgetting to include some fun money for yourself
It can be hard to stick to a strict budget all the time. If you don’t include some fun money you might find yourself breaking the budget. You need to allow for impusle purchases and moments of weakness. It doesn’t have to be a lot of money, even €20 will do. It gives you the sense of freedom and you will be less likely to fight the restrictions and break the budget.
8. Forgetting to a monitor and make changes
Your budget is not one static tool that you use every month. It is ever changing with each month. Each month brings a whole host of events and expenses. If you are not monitoring and making these alterations as need then you will enivitabliy bust the budget.
9. Forgetting the little things
The little things add up, remember that! If you like to pick up a take away coffee and a pastry every now and then you better make sure there is money in the budget for it. A bottle of sparkling water here, a packet of crisps there, it all adds up. If you don’t have a space in your budget for these things but you are still making the little purchases then you are going to bust your budget.
10. You are not prioritsing properly
Have you got your priorities straight? Make sure you know where your money needs to go and what your money goals are. There is no point in trying so hard when your money is leaking out in all the wrong places. Take a good look at your budget and make sure all your priorities and goals are taken care of.
Hopefully these might provide you with some insights into why your budget is failing. I hope they get you back on the right track!
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