Creating a budget is not a very difficult thing. The hard part is to stick to it and achieve the desired success. It is unfortunate to see that despite having a good budget, people often fail. Budgeting is just like dieting. Most people plan it and start with good intentions, but very few are actually able to trim fat and lose weight. The similar thing holds true for budgeting as well. You plan to trim your expenses and increase savings, but it doesn’t take long for your plan to derail. The reasons are quite evident – a negative attitude, and lack of discipline, motivation, and commitment. An honest attempt to budget must be supported with the right attitude, motivation, and realistic expectations. Here is a brief rundown on some of the budget busters and how to deal with the same.
Budgeting Is A Scary Word
Most people find budgeting intimidating. This is because they think of it in negative terms such as a sacrifice, penny-pinching, restrictive, financial handcuffs, financial diet, and less enjoyment. But the main reason why they still go for it (unwillingly!) is that they think it to be the only way to get their finances on track. With this negative attitude, you can never expect to achieve your budgeting goals. In order to win the battle, your first line of defense should be to acquire a positive attitude. You should think of budget as a way to achieve your dreams and goals. You should think of it as a means to an end.
There Is Nothing To Motivate You
Lack of motivation is another budget buster. Most people have ambiguous objectives when they go for budgeting. When you ask them why they are doing it, they will say – to achieve financial freedom. What kind of financial freedom? Where will you use your extra savings? It is important for you to have a tangible long-term goal. You may use that extra savings to pay off your debts faster or to seek a career change for betterment. Keeping such goals in mind will keep you motivated because you know that the temporary trimming of expenses and practicing frugality is worth the reward you will earn in the end.
Setting Your Sights Too High
Unrealistic expectations are the biggest cause of budget failure. It sounds great to set your sights high, but when you fail to reach them, all you get is disappointment, which actually discourages you. You lose your motivation and start thinking negatively. Therefore, it is very important for you to keep your expectations as realistic as you can. The goals may be challenging, but it must be realistic as well.
The best way to do this is to go slow. Start by trimming small amounts of expenses and when you find that you are comfortable with that, you can go ahead and trim a bit more. Keep the timeframe short and start fairly small. Always remember, lots of smaller short-term goals are easier to accomplish than one big goal.