Budgeting is one of those things that can seem a little bit of a chore.
But updating your budgeting process is essential in keeping a clean bill of financial health and for getting closer to your goals. Here are five clear signs it’s time to take a good, hard look at your budget and make some changes.
You’re Always Over Budget
If you consistently exceed your budget in different categories, this is a really good indicator that you need to work on your budget because it’s just simply not working for you anymore. Ask yourself if you’re being realistic about what you spend or if your priorities have changed.
Sometimes, it’s as simple as shifting cash a few categories over, and you’ll find everything falls into place. And if you need to rein in your spending, double-checking your budget is an excellent way to remind yourself what’s important.
You’re Still Experiencing Financial Stress
If you feel anxious when you think about your finances, it’s a symptom that your budget isn’t working for you — because it’s supposed to do the opposite. The financial stress can take its toll in many ways, from lost sleep to constant worry about bills to the point where you can’t think about anything else.
If you are getting to the point where you feel burned out, take a deep breath and analyze your budget; chances are, you just need to reframe a few things and be more honest about your spending.
You’ve Just Had a Major Life Change
Big changes in your life can greatly affect your money situation, which ultimately affect how successful your budget is. Most people don’t make it through major life changes without their priorities shifting, too.
Whether in relation to a new job, moving to a different city, or having a child, these milestones tend to bring new expenses and financial responsibilities that will all but force you to comb through your finances and make adjustments.
You Aren’t Keeping Track of Spending
If you’ve gotten out of the routine of tracking your spending, now may be a good time for a budget overhaul. Recording your spending is a must if you want to know where your money is being spent and where improvements can be made.
And if there’s something holding you back from putting in the work to budget properly, it could be that your budget is the culprit. You may need to change how you budget by using a different app or approach to keep yourself accountable.
You Have a New Financial Goal
Maybe you got a promotion recently and want to save for a trip, or decided it’s time to have kids and want to save for a bigger home. Whatever the change, if your financial priorities have changed, your budget should be in alignment with that. This is different from a major life change in that it’s more specific to a choice you’re making, like saving up cash for a dream trip to Europe.
Many of these adjustments could even be temporary, but that doesn’t stop them from being a necessity if you want to accomplish your new goals.
