Why your personal budget is not working and what to do about it

Profile Picture
By: Good Nelly
on 11th Jun,2015

You've to reanalyze your budgeting skills.
Why your personal budget is not working and what to do about it

Are you fed up with the way your financial life has shaped up even after creating a personal budget? Are you wondering what went wrong with your personal budget? Your budget may not work for various reasons. You need to check and re-check your budget to ensure that budget doesn't contain any error. You've to reanalyze your budgeting skills. Moreover, you need to watch out for the reasons why your budget is not improving your financial health at all.

5 Reasons why your budget is not improving your financial health

Check out the 5 reasons why your personal budget is not helping you progress in your financial life.

1. Your budget is too strict: You are determined to save money. As such you've prepared a very strict personal budget plan. You have decided to lead a frugal life and bring your expenses to the bare minimum level. However, in reality, you find it extremely hard to live as per your personal budget plan. You're not able to meet your spending limit even after your best efforts. You cross the limit frequently and therefore your budget fails to bring any positive change in your life.

2. Your spouse is not in the scene: You may have promised yourself to lead a disciplined financial life. However, you would not be able to fulfill your promise unless you've discussed your financial plan with your spouse.  If your spouse happens to spend a huge amount of money, then your budget won't be of any use to you.

Sit with your spouse and have a frank discussion about your financial goals and budget plans. Show the monthly income and expense figures to your spouse. Explain why it is important to create a budget. Inform your spouse that a budget doesn't mean your life will become distressful. It only means that you'll lead life little carefully. When your spouse comes to know that his/her life wouldn't change drastically after following a budget plan, he/she will co-operate with you.

3.You don't have an aim in life: A practical and achievable goal can help you stay motivated and stick to your budget. Set up short-term goals such as repaying your credit card debts, saving for purchasing your first house, buying your first car, etc. Be focused on your goals and try hard to meet them. Once you're determined to meet your goals, you'll find that saving money will become the top most priority in your life. You'll get extra enthusiasm to follow your budget plan.

4. You didn't modify your budget: Practical life is very different from theory. A well-drafted plan may be suitable in theory, but it doesn't mean that it'll suit you in reality. For instance: when you've created a budget plan for the first time, you took into account your prevalent financial situation in mind. However, an individual's financial situation doesn't remain same all the time. It changes from time to time. Likewise, you need to keep on modifying your budget accordingly. A static budget won't help to bring desirable changes in your life.

5. You just loathe budget: You've prepared a budget plan for the sake of your financial health. However, in your heart, you just hate budget. You loathe and despise budget. You just can't stand budget spreadsheets. If you really hate something very much, then it won't be possible for you to follow it in real life.

If you just dislike the idea of creating a budget and following it, then watch out for the ways to manage your finances minus the spreadsheets and complex calculations.

Budget can help you make wise financial decisions. It gives you the power to move the direction of your life in the right path. However, it is not easy to live life according to a budget. You've to modify it as and when it is required.

No votes yet

Page loaded in 0.819 seconds.