Why your budget isn't working and how to fix it
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Do you struggle to stick with a budget? Today I am going to share a few common mistakes and solutions for new budgeters.
You don’t consider actual costs
You likely spend more on groceries and electricity than you realized. Pull up your bank account and see how much you actually spent last month on your basic necessities. If you need to make some cuts, that’s fine, but be realistic about your needs.
You aren’t accounting for rising prices
If you’re reading this in the summer of 2022 then you know we are facing RECORD inflation that our generation has never seen before. It’s frustrating and overwhelming. And it requires some budget flexibility. You can’t rely on February’s budget for July’s gas prices. You might need to add a little bit of a buffer to account for these things.
You forgot life is messy
Something will come up. Always. We have been living the budget life for 10 years and we’ve never had a month where nothing came up. We’ve never had a month where we didn’t have to account for an unexpected expense. This is life and it’s unpredictable. So be prepared for an unexpected copay or a birthday party or a field trip or what have you.
You didn’t include annual expenses
Crap! Did you forget your auto insurance or upcoming sports fees for soccer? When bills are not monthly expenditures they get lost in the flow of life. I recommend setting up some sort of system to remind yourself.
You’re being too restrictive
You have to include fun. Even if it’s going to Sonic during happy hour or buying a $5 iced coffee. Give yourself a little room.
What about you? Leave me a comment and tell me your struggle.
