Why is your budget failing? It’s true no two budgets are alike because no two families are the same. Your needs are going to be different from mine, but that doesn’t mean you can’t budget. Here are eight things that could be throwing your budget off month after month.
When you set your goals for your financial future, you have to be realistic. You have to make sure the numbers work on paper and in life. It’s easy to over budget. You get excited about paying off debt or saving that you don’t think about daily living.
Don’t set yourself up for failure. Set goals that are achievable. If you set goals that you never reach you’re going to get down and feel like your not making any progress.
2. Forgetting the small things
Little things add up. That $5 a day coffee is $150 A Month. Make sure you account for all of your spending. I tell people to track their spending for a full month. Write down everything you buy even if it’s a piece of bubble gum.
Once you’ve done that for a month or two, look at your spending and see where you can make some sensible cuts.
3. Forgetting non-recurring bills
We make sure we budget for the larger expenses, but Make sure that your accounting for bills that you might not have to pay monthly. You can split that payment up into monthly installments, or you can put the entire amount into your monthly budget before it’s due. Don’t let your non-recurring bills slip up on you and through your budget off.
4. Using the wrong numbers
I hear this all the time. People wonder why their budget keeps failing and the problem ends up being they’re using the wrong numbers. You don’t use your gross income for your budget.
Use your bring home pay. That’s what you bring home after payroll deductions and taxes. By using this number, you can come up with a realistic budget and a plan based on money that you have.
5. Keeping up with the neighbors
I know sometimes you just want to have what your friends have or do what they do but you know your budget and how much you have.
You don’t have to get rid of friends but think of things you can do that are fun yet won’t bust your budget. Maybe that means not going shopping at the mall, or not going to such an expensive restaurant to eat.
6. Wrong Budget
There’s no one way to budget. You can use the Google Calender budget, 50/20/30 rule, or the 0 based budget. You can use whichever works for you and your family. As long as it’s not overly complicated and it’s making your money work you.
7. Making Budgeting miserable
If budgeting starts making you life boring you’re not going to do it. Don’t stretch your budget so thin you don’t get to live your life. Budgeting isn’t always going to be fun. There will be times you want to do something and can’t, but budgeting should take all the fun out of your life.
8. Not Planning For Emergencies
Stuff happens. It’s life we can’t control everything, but we can have a plan for it when it does happen. Make sure you have a plan and know where the money will come from if your car breaks down, your refrigerator stops, or you get sick.
Make sure your insurance coverage is up to date. Make sure it cover what you need to have cover. Reevaluate your insurance at least once a year.