So many people dream about getting off the weekly ‘Just surviving’ treadmill but do not know how to get off, or why they are stuck there.
As you probably know, as far as I am concerned the secret is in good budgeting. It is the foundation that everything you do will stand on so you had better take notice of what you are doing when it comes to this topic!
I hear lots of stories about budgets and why they don’t, won’t or can’t work; Here are a few…
- It takes too much time/I’m too busy
- It’s too hard
- A budget restricts me too much
- I don’t earn enough money to be able to budget.
- I tried it and it never worked.
- I’m no good at budgeting.
- I manage to get through without it.
- It causes me too much stress so I try to ignore it and hope for the best.
Of course these are all just what I call ‘stories’ but if you are on my mailing list and I have not yet convinced you of the benefits of good budgeting or have not educated you in what good budgeting actually is, then you may well have thought the list above contained valid comments.
Over the next month I am going to give you 10 big reasons why people fail at managing their day to day cash flow. There will be one every three days so keep an eye on your inbox and if one seems to be missing check your junk mail folder!
No doubt some of these will ring bells for you!
10 Reasons Why Budgets Fail;
1. No targets
One of the most basic success principles for any budget is to set yourself targets or limits for each of the items in your budget. Do you have pre-determined amounts that you will limit yourself to for regular items such as groceries, fuel, entertainment, telephone, Christmas, holidays etc… If you work on the principle that you will find out what they cost after they have occurred you do not even have the remotest chance of being successful at budgeting.
Yes I know the price of everything is going up and it is so hard to stick to a target but if you don’t have a target you have lost before you even got started.
These limits become the foundation upon which you build your budget and if you do not have a clue what your regular expenses cost you or what you can get them down to if you have to, then this is where you should start!
You could take this to the extreme and run the car out of petrol because you have used up this week’s petrol allowance and can not possibly buy any more before refueling day but I would not recommend this.
I would suggest you should monitor the cost of this item for a month and then make a decision about what your allowance will be and then if you find you are going over budget, spend a few week-ends in the garden rather than driving here there and everywhere and see if you can ‘car pool’ to work or find an alternative for a while to bring this expense back into line.
You just need to be conscious of the amounts you have chosen and then be aware that you are working to these targets.
It is way too easy to just say a few dolars here and there won;t matter but the largest amounts of money dissappear on the smallest of expenses!
So, If you have never really thought about it before, it is time to sit down and put numbers beside all of the expenses in your life and then pay attention to these numbers. You might just be surprised what happens when you do!
That’s reason number 1. Pretty simple, but also extremely important if you have not been doing this!