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Common budgeting pitfalls

Today we’re going to look into budgeting pitfalls – reasons that cause us to give up on our budgeting attempts and how to possibly work through and overcome them.

For many budgeting is a four letter word and it really shouldn’t be!  Budgeting is simply planning how you’re going to spend the money you expect to come in your household.  Many confuse budgeting with keeping a checkbook register. This is a key step in creating a budget and sticking to one but is not the same thing.

Budgeting Pitfalls and how to overcome them

Some Common Budgeting Pitfalls

  •  Negative attitude / Lack of Buy In – If you’re being forced to budget or really don’t want to budget, than guess what? You probably won’t be too successful at it.  If we don’t have the proper motivation to do something, then are we really going to give it our best? I know I won’t.  This is a personal decision that you have to make for yourself and your family.
  •  Lack of motivation/support – This goes hand-in-hand with having a negative attitude.  If you’re in a relationship and your significant other doesn’t believe in budgeting then it can be much more difficult.  Especially if you’re dependent on their income and the decisions they make directly impact your household finances. This is something we’re going to discuss in more detail in a future post this month. I’d love to hear from you if this is something that you’ve successfully dealt with or have specific questions you’d like addressed.
  •  Unrealistic expectations – This is not an overnight process. You will most likely not find the cure-all, win-all immediately. Expect hiccups and frustrations. Just like your financial problems did not begin overnight, they can’t be corrected overnight.

Financial Freedom Next Exit

  •  Not willing to change your lifestyle habits – This is a hot spot with many of my family and friends – especially if you’re looking at creating a savings fund or paying down debt.  You have to be willing to make some changes (and for some they may be drastic) in order to make a difference in your wallet and your bank accounts.  Frequent eating out, unnecessary shopping trips (even if they are “bargain shopping”), regular splurges – they all may have to be trimmed down or even eliminated for a period of time.  The question I always ask myself is if making a short-term sacrifice is worth the long-term rewards that I want for my family?
  •  The belief that you can’t afford to have a budget or don’t make enough money to create a budget – Sorry. I can’t accept that one. I truly believe that budgeting when you have less helps you to stay on track and as your income increases you’ll be better at managing the increase and have even more money to save and spend on extras.  The concept of budgeting is to allocate the funds you expect to have – if you’re only going to have $100 then that’s what you base your budget on.  If your expenses are $500 then you’ve got some serious trimming to do or need to come up with some ways to increase your income.
  • Comfortable with living below the line – If you’re familiar with Dave Ramsey, then you know that anything “below the line” are those items that you just don’t have enough funds to pay when you look at your household income.  The goal is to pay off debt, increase your income and eventually get your items all above the line.  Well, there are some people who are okay with having the majority of their bills be below the line.  Many times this something that is passed down from generation to generation.  My personal reflection is this a way of existence that I want for my children.

What budgeting pitfalls have you worked through or are working through?
You never know how your struggles and successes will help motivate and inspire someone else…

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Michelle

Saturday 13th of April 2013

You have a plan...that's great :)

Michele

Friday 12th of April 2013

I have no choice but to budget at the moment-my income has dropped drastically! Luckily I am good at this but will definitely have to get a couple more clients so I can pay off more of my debt quicker--yes I have read Ramsy!!

cindy b

Friday 12th of April 2013

Wow isn't this the truth? I know my husband and I sure struggle with unrealistic expectations. We both tend to see something we want right now and just go for it! it's a struggle but over the last year we were able to pay off all of our debt and boy did it feel amazing!

Michelle

Saturday 13th of April 2013

All of your debt?!?!? That is awesome! I'd love it if you'd share how and give some insight to our readers. There will be some posts coming up in the next week or so on debt management and payoff. Way to go!!!

shaunatorres

Friday 12th of April 2013

We have a horrible past of not willing to change our lifestyle, we are used to living with money to spare and since the economy has changed it has been hard... Thanks for a great post

Michelle

Saturday 13th of April 2013

Recognizing it and finding ways to adapt is a huge step. Thanks so much for stopping through Shauna!

Yvonne Wilson (EMoments)

Wednesday 10th of April 2013

I am so guilty of not keeping up with a budget. It is the right thing to do, especially in these economic times. Recently I've seen some improvement in that another paycheck came in before I had spent the previous one. Still, it's definitely one of the areas in my life I need to work on..every nickel counts. Application is key to success and to overcome the financial struggles we often face. Again great tips you are sharing Michelle

Michelle

Saturday 13th of April 2013

Glad the tips are useful! Being able to still be "in the black" when a new pay day rolls around is a HUGE accomplishment for many. Especially when so many people are barely living paycheck to paycheck. Great job!

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