*This post may contain affiliate links. Read my disclaimer for more information.
Is it hard for you to stick to the budget you created month after month? Trust me you are not alone. In fact, many problems with budgeting have nothing to do with the budget itself. People go through various hurdles, which takes them off course, and below are six reasons why your budget is not working for you.
There is no such thing as a perfect budget and no two budgets are the same. Base your category numbers off your family’s needs only and be sure to use realistic numbers. There is not a right or wrong number. Also, do not think you need to make a certain amount of money in order to start budgeting.
Budgeting is not about how much money you make, it is about how the money you make is allocated.
It’s too complicated
Do not focus more on the tool than the plan. You do not have to use fancy excel spreadsheets or apps to make your budget work. Find a realistic and simple solution to help you make your budget effective.
Not tracking your expenses
If you do not track your expenses, you will have no idea where your money is going. Keeping track will help prevent you from overspending and help you save money in the end. In addition, you will notice right away if any fraudulent activity is happening with your account.
Your life changed
Budgets are meant to be flexible, which is why you should adjust your numbers as your life and priorities change i.e. increase/decrease income, have a baby, get married/divorced, lose a job, etc.
“Beware of small expenses: a small leak will sink a great ship.”– Benjamin Franklin.
Every little bit adds up. Before making a purchase, wait a few days to see if you actually need it or can do without it. If it is a necessity or an overlooked expense, adjust your budget accordingly.
- How to create a zero-based budget
- Start paying off your debt today
- 10 ways to trim your monthly expenses
Expenses exceed income
If your income minus your expenses is a negative number, that means you are spending more than you make. Review each category and note which ones can be eliminated.
If you have cut to the bare minimum and you still get a negative number, consider picking up a second (or third) job, use cashback apps such as Ibotta or Ebates, or sell unwanted items around the house on Mercari to bring in extra cash.
There you have it. Six foul proof reasons why your budget isn’t working.
Budgeting is only half of the battle when it comes to managing your money. As you work towards learning how to budget, know that it’s okay to try out different methods. This allows you to work through what works and what doesn’t. Once you find something that works best for you, be sure to stick with it.