In recent years, stretching a dollar has become something akin to a magic act. However, it simply must be done to make ends meet. To accomplish this, a personal or household budget is a must! Unfortunately, sometimes your carefully designed budget doesn’t do what it’s supposed to. So, here are seven reasons your budget may not be working.
1. Patience
If you’ve been in a bit of a financial mess for a while, it is unrealistic to think that a couple of weeks worth of sticking to your budget will suddenly turn things around. Although it would be nice, it doesn’t work that way. If you’ve constructed a sound plan, it may take a little time before you see dramatic results. Have a little patience before you give up.
2. Get A Little Fun Out Of Your Wallet
Budgets can be a lot like starvation diets. With monastic zeal, we cut out every ‘unnecessary’ expense. We pair everything penny down so that our money is being spent wisely while any extra goes into the bank so fast that it ruffles the toupee on your bank teller’s head! Such determination is admirable but you can’t keep it up for long. Depriving yourself of a little fun in life will lead to a backlash where you splurge or go on a spending binge. You don’t need these kinds of setbacks. So, while budgeting, put a little fun into the mix.
3. Following Orders
Budgets aren’t written in stone. That said, you won’t get blood or money out of a stone either. If you think of your budget as something you can bend or break whenever you feel like, you’re wasting your time even trying to get your finances in order. You need to exercise some discipline if you expect your budget to do any good.
4. Get Real
Unrealistic expectations have derailed many a budget. To really get a handle on things, you have to know precisely how the numbers add up and don’t expect them to jump through hoops for you. Create a sound financial plan that represents precisely where you stand financially.
5. Proof Positive
A positive attitude is essential for pretty much anything you attempt in life and budgets are no exception. Eleanor Roosevelt once said: “If you think you can or you can’t, you’re right.” Implementing your budget with a defeatist attitude will ultimately fail. Be positive.
6. Budget 911
No one can predict the future. So, how do you budget for the unknown? The answer to this is you set up an emergency fund. A little reserve cash tucked away will help get you over any unexpected rough spots that life throws your way. Without this kind of reserve, a minor calamity can shatter your whole budget. Don’t let it happen.
7. Do You Fit Your Budget?
There’s a lot of talk about creating a budget that fits you. However, the real trick is to make sure you fit your budget. Be honest with yourself. Know your strengths and weaknesses when it comes to money and make sure your budget is something you can live with.
This article was written by Andrew Salmon from the life insurance quote site LifeCover.
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