Budgets are an essential part of managing finances but most people either never get around to making a budget or they don’t manage to stick to the budget they set. Budgeting is done with the intention of making our lives easier but more often than not budgets fail. Why do budgets fail even when the intentions are good?
The reasons that budgets fail are numerous and as varied as people themselves. Budgets are made with the intention of living within one’s means and establishing a plan for their financial future. One of the main reasons that budgets fail is that they are not realistic to begin with. Goals have not been established so there is nothing to work for; these goals must be realistic or the budget is going to be a source of discouragement for those creating it.
To simply sit down and create a budget for paying the bills is not enough. There must be goals to go along with the budget no matter how small in order for us to remain focused. Without goals the reason we created the budget is soon forgotten and we are more likely to make impulse purchases that in reality we cannot afford. We must have goals in order to have something to work for and those goals must be broken down into reasonable and easily obtainable steps so we can track our progress.
When we give into impulse purchases we are defeating the whole purpose of creating a budget in the place. Something as simple as a trip to the grocery store can be devastating to your budget when you give in to that isle by the register. It’s not coincidental that you will find individual candy, gum and single battery packs by the cash register. These items are there for you to have a last minute need to increase the amount that is spent in the store.
What a budget is created we must analyze our expenses to ensure they fit within that budget and sometimes this means reducing spending. The failure to analyze expenses in order to find where they can be reduced. Not knowing where we are spending money that we do not need to contributes to budget failure. A failure to research the products and services we use to find quality at a lower price contributes to paying more than we have to not only for our necessities but for luxuries as well.
While some things are truly luxuries we all need something to enjoy. Setting a budget that is too strict and leaves no room for entertainment is a budget that will not succeed. As we budget entertainment into our monthly expenses we should do so while keeping in mind the fact that there are discounts available to us and even no-cost alternatives that we can enjoy instead. Budgets can only succeed if they are realistic and we have goals associated with the. There are no shortcut is when it comes to budgeting and you must possess the self-discipline to speak to a budget. No budget will be successful without being individual lives that no matter what others around you are budgeting for and purchasing you have to save your budget to include the things you can afford and make your savings goal to make things you want to a reality.