You cant expect to write up a first draft budget and stick to it for life. There is no quick fix for budgeting and those that think there is probably don’t understand the reason why they budget. Budgeting isn’t about restraining yourself from spending money, but rather it’s the opposite. It’s essentially measuring how you spend your money to see how you can spend it better. So expect to get it wrong but don’t despair and give up because your just one step closer to properly understanding your finances so you can make the most of your limited funds. Here is some reason why budgets fail.
1. Failure to Plan for all expenses
The budget did not take into account all the expenses and maybe one or a few were left out. To get a proper understanding of your finances you need to include everything.
2. Lack of self discipline
The budget was made and trashed at the first temptation. You got to be commited to your budget and resist from buying some junk.
3. Unrealistic Expectations
Budgeting isn’t about putting your finances in a straight jacket. Unrealistic budgets are bandaid solutions and rarely succeed in the long term. Budget to live, many of life’s expenses are necessary and you need some form of entertainment. Although within reasonable amounts is best.
4. Unplanned Expenses
These crop up out of nowhere and suddenly you have a massive expense with no room to budget for it. There is no way to prepare for it until it happens but don’t give up when it does and by all means factor it into your budget so your prepared for next time.
5. Lack of Interest
The person who made the budget didn’t care enough to make it work and didn’t budget anymore. There is only one cure for this and its reminding yourself about the reasons why you started budgeting in the first place, whether that be to get out of debt or to get the best value for your money so you can spend more on the things you want or any number of possible reasons.