Is your budgeting plan working?

5 Reasons Your Budgeting Plan Is Not Working

July 23, 2020 3:55 pm Published by

5 Reasons Your Budgeting Plan Is Not Working

Some people are able to find the perfect budgeting plan for themselves within a few tries. Whereas for others, it could take years to find one which works for them. Using a budget when dealing and controlling your finances is one of the best ways which you can keep track of your spending and saving.

Any financial expert will suggest to you that having the right budget is essential. Although, your plan just might not be working in the way it should. What are you doing wrong? Why is it not working? Below are some common mistakes which people make when they are trying to stick to a plan.

Your budget is not exact

When you created a budget, if you included random estimates for things such as the weekly food shop or the monthly fuel amount, then it will not line up. Although, with this being said, unless you are buying the exact same items every single month, your food shop will not be the same amount every single time. So, creating a specific amount you cannot pass when shopping is a great way to get some sort of structure. This way, if you spend less than your food budget, you can put that money into a different category e.g. savings.

You are not including everything you spend money on

For your budget to work without any issues, you need to make sure you are accounting for everything you spend, even if it is only a couple of pounds. Those small purchases could add up to some quite big after a while, and then you may be wondering where your money disappeared too. So we suggest that you take a while to think about all of your purchases you will be making over the next month. This includes the weekly trips to the corner shop, presents for if any birthdays are coming up and even the larger bills.

You do not leave any money for your hobbies

If you still have some money left over after paying for all of the essential things including bills and food, then there is no harm to put some money aside and treat yourself once in a while. But, again, you need to include it in your budget in its own category to ensure you stick to everything as you should. The last thing you want to do is be taking money from other categories thinking it will not make a difference, but in actual fact, it could ruin the whole thing.

You haven’t tried it for long enough

Not everybody finds the most efficient budgeting plan on their first try. For some people, it takes years to actually find one which suits them. But in order to find the perfect one, you need to give other plans time to see if they work for you. These could take months or even years, but you have to be patient. It may not be the budgeting plan which is not working, it may be that your categories and amounts do not add up to what they should. So before you switch your plan, why not rethink your amounts.

You haven’t set out any goals

As we all know, we are more likely to achieve something if we are feeling motivated, the same thing goes for budgeting plans. If you are wanting to have that little bit of extra money at the end of the month, the key is to become more motivated and set goals.

Although, if you do not have any goals, you may feel like your budgeting plan is some sort of punishment which is limiting your spending, in actual fact, it is the complete opposite.

If you find yourself struggling and your budgeting plan still is not working after months of hard work and dedication, we suggest that you do a little more research into finding one which suits you and your lifestyle. If you are struggling with debt and need more help you can contact us or find help within our website.

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This post was written by Charlotte K

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