Making a budget is hard, sticking to it is even harder. But, if you want to gain financial freedom, spending less than what you make and putting some aside for savings is a must. Most of us have the best of intentions when making a budget, but then life seems to get in the way. No one intentionally busts their budget, most times an unexpected event such as a death or illness arises and it is no longer feasible to stay on track. With a little help though, even those of us that struggle can come up with and stick to a budget that fits our finances. In order to get to that point, it is important to understand why your current situation is not working.
The top ten reasons your budget doesn’t work could include any, or a combination of, the following factors:
- You must establish a budget that fits your lifestyle, and that of your family. If you do not account for eating out, but your family goes to restaurants weekly, your budget will not work.
- You only stick to your budget some of the time. Just like going to the gym once a month will not result in any real change in your physical appearance, if you are not consistent with your money habits, you will not see results.
- You overlooked certain items, and thus the extra money you thought you had disappears.
- Your budget lacks flexibility. Sometimes you have to be able to spend less in one category, in order to spend more in another when the need arises. If you do not have this flexibility built into your budget, your budget will likely not work.
- You are too easily persuaded to make an impulse buy. When you buy things not accounted for in your budget, the entire bottom line is thrown out of whack.
- You have to resort to loans to cover a deficit.
- You failed to account for emergencies, or to set up an emergency fund.
- Your budget does not include any entertainment expenses. You have to give yourself a little fun now and then, if you are stuck without any entertainment funds, you will quickly be derailed.
- You make less than you spend. This one is simple math. If your expenses are more than you bring home every month, you have to find areas to cut back, or eliminate from your budget.
- Life got in the way. Unexpected events can throw a wrench in your plans, but life has a way of happening without asking.
If you are experiencing financial difficulty, call our office for help with debt consolidation or bankruptcy. We can help put you on the path to financial freedom, while giving you the tools to stay there.
If you have questions about how budgets and bankruptcy, call our office for answers. Call a Plantation, Florida debt relief attorney today for more information.