5 Reasons Why You Can't Budget

Keeping track of income and expenses, and budgeting based on these data, is the alpha and omega in the field of personal finance. These are basic actions, without which it will be difficult to talk about savings, increasing savings, and so on. And it's quite simple, you just need a little discipline and knowledge of school mathematics.

However, not many people can keep a budget for a long time, even if they understand the importance of this activity. Often the whole process is hindered by non-obvious obstacles. Better try to avoid them.

1. Fear to face the truth

I like to think of myself as a person who treats finances rationally. “I only spend my salary on what I need. Okay, not only, sometimes I squander money. But it's not all that bad, is it? All in all, not much is wasted. You won’t make a fortune if you save this amount, ”the internal logic works something like this. If you take up the budget properly, you will no longer be able to deceive yourself. And that’s why it’s scary to even start: what if something terrible comes up?

The truth is that almost anyone will have expenses that can be considered unnecessary. And that doesn't make anyone worse. We are human, we are alive, sometimes we make the wrong choice. Be more forgiving of yourself.

To be less afraid, remind yourself often that only you decide what is right and wrong for you to spend. Nobody rates them. The budget is needed not in order to deprive yourself of all the pleasures and limit everything. It helps to keep track of what is happening with finances in general. Therefore, try to take the position of a kind, supportive observer in relation to yourself.

2. Too strict restrictions

When you start budgeting, sometimes it works excellent student syndrome: I want the records to look perfect so that I can save money and save more. Therefore, you deny yourself the usual coffee and chocolate, instead of a steak you buy cheap minced meat, and in general you worry about every waste.

Of course, life does not become more fun and richer from this, because such an approach throws out of it a lot of things that bring pleasure. It is possible to stretch it out for some time, but then there will be an inevitable breakdown with the conclusion that these budgets are complete nonsense.

Therefore, it is necessary to remember: the budget is for you, not you for it. This is just a tool that allows you to structure your finances, identify problem points, and generally understand a little more what is happening with your money. It is important at least in the first months, while you are analyzing the data, to live as before. And in the future, it is worth planning your expenses so that they are not minimal, but comfortable.

3. Expecting Fast Results

Some start recording expenses and incomes, create a budget, and expect that they will immediately begin to take better control of their money and save more. And when this does not happen, they are disappointed and give up everything.

However, it is perfectly normal if you are engaged in budget processes, but nothing much has changed in life, except that you are now forced to spend time fixing expenses. First you need to get enough data that you can already work with.

For example, the structure of expenses depending on the season will be different. Winter boots are more expensive than sandals. In December for communal apartment you have to give more than in May. One month you have to pay property taxes, the next you need to renew your car insurance. So short-term calculations are not indicative. This means that you will start planning your expenses more accurately after a while. Just give it to yourself.

4. Lack of motivation

The question "how?" important. But why?" even more important. If a person does not understand how budgeting will help him, he will quickly give up on it.

And here you need to figure out what will change in your life if you start to be more thoughtful about finances. For example, think about financial goalsthat you want to achieve.

5. Choosing the wrong budgeting system

People are different and different budgeting systems suit them. Someone will be interested in prescribing formulas in Excel tables. Someone will like to fill out a notebook, stick funny stickers in it and draw diagrams with pens of various colors. Someone prefers to automate the process and downloads special application. There are no wrong ways, there are uncomfortable ones.

So if you've started budgeting but are sick of the process, it might be worth trying a different entry option.