Often people sit down and arbitrarily decide which categories can be cut down when making up a budget. They may not realize at first that the numbers they have won’t work. You may need to increase certain categories (such as gas or food) and decrease the ones that are not as essential to covering your basic needs. You should make sure that you always have food to eat, a place to live and power. After that everything else is negotiable.
02Did You Cut Out All the Fun?
If you have slashed all of your spending categories or entertainment options, you may have set yourself up for failure. Everyone needs some money for fun each month. You may have to limit it to twenty dollars a month if your budget is really tight, but that twenty dollars can help stop you from blowing your budget by spending a hundred at the store each weekend. This extra little bit of money can prevent you from feeling deprived, which can lead to over spending.
Be honest, do you just not care enough about your finances to stick to your budget? Are you focused on instant gratification? Honestly having a little fun money can help to prevent this. Additionally it may help to write down your financial goals and carry them around with you in your wallet or purse. As you pull out your cash or debit card and look at those goals, it may help remind you of the reason you have a budget.
You may need to avoid the stores that you tend to splurge the most at as well. These strategies can help your avoid the budget busters that you struggle with. You may also be wasting money without realizing it. Be sure you are not buying things you do not use or need. Take a friend with you if you need help limiting your spending.
Tracking your expenses, evaluating your spending and just balancing your checkbook take up time every day. If you hate doing this, switch to the envelope system and stop using your debit card. If it is a matter of having time to track your expenses, sitting down and working on your budget for five minutes a day can help decrease the long drawn out budgeting sessions.
Additionally you may consider switching to a cash only budgeting system to cut down on the time involved or trying these five budget hacks to make it easier. Making tracking your expenses as easy as possible will help you stick to it.
If you are working to get out of debt, but you know it will take a year or two, then it may be difficult to stick with the plan. You can set mini milestone markers along the way. As you reach these you can reward yourself. This can be extra motivation to stick to your budget. You may reward yourself with a nice dinner out if you can avoid all fast food restaurants for a month. If you pay off a thousand dollars in debt, you may reward yourself with a video game or a new outfit.
These little rewards may give you the additional motivation that you need. You need to carefully analyze your budget to make sure it is moving you towards your goals. This means looking at your spending by category, and to make sure you are in balance across your budget. Be sure that you do not go into debt as you reward yourself.
If you are not working on finances together, then you may find that your spouse is ruining the budget each month. It is important to work together to avoid money and marriage problems. You can negotiate through the categories that matter the most to each other, and find a budget that works for both of you.
Weekly or daily budgeting meetings can help as you work on following your budget. The daily meetings are essential to help you identify your problems areas and to control your spending. When budgeting with someone else these meetings are even more important since you may both end up spending at the same time.
07Are You Forgetting to Include Items in Your Budget?
It is important to remember your annual expenses for your budget. You can set up a sinking fund for these expenses. You should also set up a category to cover irregular spending like the cost of attending a friends wedding.
These unexpected expenses may not count as emergencies, but it is important to plan for them. You may learn about them soon enough that you can set aside money for them, or you can have a category set aside for fun expenses to cover them. Things like your taxes or car insurance you can set up a sinking fund and contribute a monthly amount to cover them.
Why Can't I Seem to Follow My Budget?
If your budget isn't working for you, you need to carefully consider a few things. Your budget may not be working for a variety of reasons, and until you figure out what they are you can't fix the problem. Your budgeting style may not match the system you have set up, or you could have other issues. These simple questions can help you to address your budgeting weaknesses that stop you from managing your money effectively. You can identify your budgeting mistakes and fix them. .