Think budgeting just isn’t for you? It’s likely not a “you” problem at all — it’s probably how you’re budgeting. Here are six reasons you’re struggling with your budget and how to fix it.
You Aren’t Managing Expectations
A big mistake many first-time budgeters have is going too hard too fast. Setting a budget that’s just way too strict or complicated is a recipe for burnout. This will likely lead to you ignoring what you’re actually spending on, aiming for some “perfect” number instead of being honest.
There’s no big secret here: just make small, manageable changes. Adjust to budgeting gradually; going all-in sounds good, but it’s often the reason people quit their new habits — they don’t work themselves up to it first.
You’re Forgetting
It’s okay to forget things; it’s part of the human condition. But if you aren’t setting yourself up for success and trying to remember, then “I forgot” is no more than a convenient excuse to avoid budgeting.
Fight back against your lack of motivation by tying budgeting in with other habits you already have. And if you can, automate it. Set reminders or alerts, have your browser open your budget every time you start your computer, and, if you have to, go old-school and write it down. Pick a method that works, but ultimately, you need to be more invested in remembering to budget.
You’re Inflexible
Life is full of unexpected and expensive surprises. If your budget doesn’t have any wiggle room, one surprise can send you into a freefall.
And if you have perfectionistic tendencies? Say goodbye to the progress you made — you’re budget’s “no good” now that you’ve deviated from it, right?
Fortunately, no. Rigid budgets aren’t healthy.
They’ll just make you more stressed and more likely to give up. Everyone needs to build in a buffer and “fun money” category so they don’t feel trapped. Buffer categories are perfect as a catch-all for the small miscellaneous expenses that feel out of place anywhere else, while fun money is self-explanatory and a hallmark of a good budget.
You’re Only Tracking Some Things But Not Others
You shouldn’t be selective about what you’re budgeting unless that’s the entire point of your budget (i.e. a vacation budget). If you’re not tracking your daily or weekly spending, money disappears fast, and your once-ironclad system falls to pieces in less than a month.
You can’t improve what you don’t measure. Leave nothing out of your budget and aim to fill it out every day. Don’t estimate, either. Keep your receipts or use bank statements to get everything right down to the penny.
You’re Still Spending Emotionally
A department store loves to see someone with a devil-may-care attitude coming. If you’re someone prone to shopping when you’re stressed, bored, sad, or feeling pressured, then you’re probably struggling to stay within the confines of your budget. You come to, surrounded by shopping bags and receipts, wondering how you’ll justify this to yourself.
You can’t. You’ll need a strong “why” to push you through the hard days and a replacement coping skill when you’re feeling negative emotions. But remind yourself of your goals and reward yourself when you make progress, so you don’t feel like you’re being too hard on yourself.
