How to fix a failing budget?
Making the perfect budget is perhaps the holy grail of financial planning. For those that surf the web for the best tips and tricks for finding your footing in the world of money management, then there’s a 99.9% chance that ‘budgeting’ is among every single list. And as we’ve previously assured, it’s quite simple to do. But no matter its simplicity, the best of us struggle to create a proper budget for various reasons.
So, if you made it till here while nodding your head, then get ready to find out why your budget might be failing and what can you do about it!
Unrealistic goals
We’d all like to save as much as humanly possible, and we’re all looking forward to the day we pay our debts and are financially stable. But with budgeting, you’re setting yourself up for failure if you’re creating unrealistic goals. Goals need to be attainable, so scratching out expenses as much as you can just so that you can save enough money to pay your debts or reach a certain financial goal won’t always work — chances are those expenses you’re trying to reduce are critical to keep you going through the month.
The solution: Instead, consider the 50/30/20 approach. Spend 50% of your income on all your essentials, allocate 30% to your wants and save 20%. You can also go the extra mile and split the 20% in half and allocate 10% to your emergency fund.
This is considered one of the most balanced and adaptable budgeting approaches! And if you feel the need to tweak it to fit your lifestyle, then go ahead. Just make sure that you keep goals realistic and tangible.
Lacking commitment
Whether it’s a diet, the gym or a monthly reading list, our energy tends to reach its peak in the first couple of days before it starts to slowly wither until there’s none left. It’s the same with budgeting. You might regard it as a chore or a hassle and slowly find it way too hard to go through. Which is why you need to switch your mindset.
The solution: Begin implementing small financial habits — like cutting down costs where you can and saving. After some time, those habits will become part of your financial lifestyle, and you’ll find yourself unconsciously committing to them, because budgeting will no longer be seen in your eyes as ‘theoretical’ or a chore. Instead, it’ll be regarded as something doable and essential to achieving your financial goals.
Not having enough fun
The thing with finance is that most people regard it as rigid and boring and forget that you can have some creative liberty and fun with it, too. So, when you write up your budget, you constrict yourself in an unhealthy environment just for the sake of reaching your goals and being financially stable.
The solution: Find ways to make the journey fun! If you’ve decided to end your gym membership, then don’t just stay at home — go out! Run in the city, do home workouts. find a cheaper gym or find a hidden gym. You also don’t need to completely eliminate takeout from your budget — you’re allowed a cheat day or two.
And there you have it! Of course, there are a myriad of other reasons why you’re failing at budgeting. So, if the reason why your budget isn’t working isn’t listed over here, then you need to have a talk with yourself to uncover it. Nonetheless, we hope this post was enlightening enough to be used as a roadmap for your upcoming budget!
