Why Does My Budget Keep Failing

Danny Kofke
May 05, 2018

Danny Kofke

If this 35-year-old school teacher can do well financially, then you can too!
Why is it so difficult to follow a budget?  Many of us have trouble with this.  Every January one of the most popular New Year’s Resolutions continues to be “Spend less and save more” or something along those lines.
Why are budgets so difficult to follow?  See if any of these resonate with you:
A Budget Constricts You
When creating a budget, we sometimes feel as if we will never be able to spend money and have fun anymore.  A budget tells our money how to behave and controls it.  Some of us don’t want to be controlled.
To combat this, add a little “blow” money to your budget.  This money can be used to buy anything you like.  This is very similar to giving yourself a cheat day when dieting.  You don’t have to deny yourself forever.
You Let Your Emotions Take Over
This one rings true for many.  When we create a budget, we are using simple math to come up with the figures.  The math is not what gets most of us into trouble – it is behavior!  Many times we buy stuff based on how it will make us feel.
This reason is why the budget is so important.  Every dollar will have a name and you will know exactly what it is being spent on before your emotions get involved.
You Don’t Consider The True Cost Of Your Purchases
Many of us buy an item without considering how much work went into purchasing it.  For instance, let’s say you want a new car.  We will say the monthly payment is $500.  If you earn $15 an hour after taxes, you will have to work over 33 hours each month to pay for this.  That is almost one week every month for this car!
Thinking about the time value of money can often lead us to reconsider our purchases.
You Have Never Had To Follow A Budget
I have met with individuals who have no budget (or savings) in place.  They make enough each month to pay their bills and have a little left over to spend as they see fit.  This is flirting with disaster.  Yes, they may be fine right now but someday, something is going to go awry.  The car will break down, the house will need a repair or perhaps they will lose their job.  In addition, they will want to retire and stop working one day.
A budget tells your money where to go.  This way you can add money to your savings and retirement accounts and be prepared for those emergencies and your Golden Years.
Danny Kofke

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