Why does your budget fail?

If you have tried to make a budget before and it didn’t work, you are not alone.

Getting a budget right takes a lot of thought, effort and awareness to adjust until it is correct.

It is disheartening when you put all of this time and effort into it and only a few months down the track you are not sticking with it anymore.

A budget is such an important tool for everyone to use. I believe every single person should have a budget.

So why do budgets fail? Here are some reasons why your budget may not have worked for you in the past.

The budget does not balance. You need to have a zero based budget, where every dollar is accurately allocated to ensure that the budget balances. If it does not balance, over time it will not work.

You are not allocating the correct amounts of money. Knowing where you should put money and how much can be tricky. You need to understand your own spending needs very clearly. You also need to make sure you are thinking about expenses outside of your normal pay period (E.g Car costs, dentist)

You do not have the right bank account structure set up to support your budget. Along with the right amounts and a balanced budget, it must be accompanied by the correct bank accounts to make sense of your budget. The bank accounts will also help you to be able to more clearly stick with your budget and understand it better.

You have not automated your payments. Take out the guess work of your budget, set your payments and transfers to come out automatically so you do not forget what you need to do. It also means you are not tempted to make a last minute decision that does not suit your budget.

Budgeting is not everyone’s cup of tea. YouChange can help you get your budget set up correctly from the start. We will give you the guidance and knowledge to use your budget appropriately and what you need to do to adjust it as you move through different stages in your life.

Book a consultation to start your new financial journey