Do you want your budget to succeed? Of course you do, why else would you be budgeting if you didn't want it to succeed. You may not be aware of this but there are factors that limit your success with budgeting, as the old saying goes to be forewarned is to be forearmed. In this article, I will highlight 8 issues that 90% of people will have to deal with when they are budgeting.
Identifying and overcoming these 8 issues is essential to your efforts to stay on the right track and achieving your budgeting objectives without hindrance. Without further ado the issues.
1. Failing to set an objective
Many people who have set out to budget will attest to this issue, a budget which has no clear goals defined will quickly fizzle out.
There is no way that you can honestly expect to stick to a budget for any length of time if you have not set a clear goal for it.
You have probably heard this before, but budgets are just like weight loss programs, they are simple to implement, but get a tad difficult to stay on till the end.
You have to have a desire to succeed - your objective should be your main source of determination to see things through.
2. Inability to adapt to changes
I do not mean this in a negative way, what I am trying to say is that when on a budget most people are trying to live within that budget sometimes to their detriment, everyday life on a budget is not a source of scintillating excitement, truth with most things in life,
Subtract the pleasure from your favourite past time and you'll dislike it a whole lot more.
The point I'm trying to make here, make an allowance in the budget for all the things you love and enjoy currently.
You are a lot more likely to stick to the budget over the long term if you can still enjoy yourself, and don't deprive yourself.
Take away point leave room for all the things you love and enjoy in your budget.
3. Over budgeting
Over budgeting is what happens you cut back excessively, essentially you scale back way more than is necessary, and you wind up depriving yourself of necessities in order to achieve whatever goal you have set faster.
Bottom line is that it is fine to scale back but do not scale back so much that you deprive yourself of things that you may want or need.
4. Unexpected/Unplanned expense
Life can be unpredictable, and of course no one is able to predict when emergencies or unplanned obligations will crop up; however what you can do is prepare yourself in the event that any unforeseen circumstances do creep up.
For this reason it is beneficial to establish an emergency fund so that you have a means to cover any unexpected expense that life throws at you, as they say "Fortune favours the prepared".
5. Outgrowing your budget
Good news you have achieved your goal, and you have accomplished what you originally set out to achieve with the budget, Congratulations you have developed and exercised some will power.
Don't fall back to old habits too quickly, why not carry on budgeting, whilst expanding your horizon, and imagine more grand goals and aspirations for yourself.
6. Having unattainable goals/expectations
Quite simply it is hopeless to stick to a budget, when your end goal is unrealistic.
Quite simply it is hopeless to stick to a budget, when your end goal is unrealistic.
All you are doing is setting yourself up for frustration and unnecessary hassle.
Your budget has to have a purpose which is both measurable and plausible. If you can't measure it refrain from having it in your budget.
7. Neglecting to control your expenditures
Failing to monitor and rein in your expenditures, spending is the equivalent of cutting your nose off to spite your face.
Tracking your expenses has all the appeal of climbing Mount Everest but in reality, it's not really that difficult.
When you understand exactly where the money goes, it helps keep you in control and makes following the budget through to completion far easier.
8. Succumbing to "must have it now" syndrome
I have left this till last, as it is often the biggest hurdle to overcome, and it is a hard one to get under control; Living on a budget can be an enlightening experience, it shows you how susceptible you are to your whims.
You can never tell when or how you are going to be tempted.
If you impulsively fell like you need to shop, a method of maintaining control is to employ the need vs. want rule ask yourself "do I need it or do I just want it?" and be brutally honest with yourself.
If that doesn't curtail your desire, you could also employ the 2 day rule, it's quite simple, you hold off purchasing anything for 2 days, and if you still feel that you absolutely NEED it after those 2 days, then by all means go out and buy it.
Author: Paige Estritori
Published: Thursday 13th August, 2020
Published: Thursday 13th August, 2020