Three Reasons Why You May Struggle To Stick To Your Budget

Creating a budget is an essential step towards effectively managing your money and achieving your financial goals. However, sticking to one can be challenging, particularly if you’re prone to overspending or struggle to keep on top of your transactions.

In this article, we’ll explore some of the most common reasons you may be having trouble sticking to your budget, to help you identify any issues and take the necessary steps to get back on track with your money.

Unaccounted for expenses

A budget requires you to allocate money to each and every one of your expenses, including any money you spend on general enjoyment throughout the month. This is where many people go wrong – they tend to have no trouble allocating money for their rent, bills, and other essentials, but may forget they need to create a ‘fun’ budget, too.

Start by listing each of your outgoings, no matter how big or small – every penny spent will need to be accounted for, so you don’t want to miss anything. Be sure to allocate a portion of your income to an emergency fund, too, so you don’t find yourself going over budget if faced with any unexpected expenses.

A varying income

Many people earn different amounts month to month, which can pose a problem if your budget is inflexible. It’s best to always create one based on the lowest amount you’d take home in a month, so you know your expenses will be covered no matter what your paycheck looks like.

While it may be tempting to go on a spending spree in the months you earn a little more, it’s best to first take a good look at your budget to see where that money would be most useful. Plan ahead, and consider whether you’ll need that additional cash next month. If you can afford to use it as disposable income, be sure to put it in your allocated fun pot.

Emotional spending habits

When we feel down or stressed, many of us become tempted to splurge on an item or experience that we think will make us feel better. Luckily, creating a budget can go a long way in helping us to resist emotionally driven spending.

If you know you’re prone to treating yourself to a little pick-me-up on bad days, create a budget for that, so long as you can afford to do so. Budgeting isn’t necessarily about denying yourself the purchases you want to make, but rather ensuring you can comfortably do so without putting your other priority expenses at risk.

Make the most of your budget

It’s important to stay on top of your budgeting by tracking your expenses throughout the month. After all, there’s no point in allocating money if you’re not keeping tabs on where and how you’re spending it. Most people find it helpful to have different accounts for different funds, for an easier way to track their transactions.

For a top tip, consider opening savings accounts to hold the money that won’t be leaving your account frequently. For example, you shouldn’t be spending your emergency fund every month (if you are, that money should be allocated to a different area), so storing it in a high-interest savings account can help you to earn some money whilst keeping it safe for when you need it.

Budgeting is essential if you want to effectively manage your money and achieve your financial goals. Make sure to look over your budget regularly, and adapt it as and when needed.

Top photo by Cathryn Lavery on Unsplash