The majority of our clients make a very good income, yet many find themselves struggling to get ahead financially. Time and again one of the first things we’re asked is; what am I doing wrong?
Most have tried to stick to a budget with little success, so the question is; why do budgets that work on paper, fail to work in practice? We’ve identified five reasons that contribute to budget frustration.
1. Unrealistic or Missing Numbers
Many of us underestimate how much we actually spend on everything from groceries and gifts to dining out. We also tend to forget to include expenses like annual credit card fees, Halloween candy, iTunes, Netflix, school field trips, school lunch programs, Costco memberships, and charitable donations.
2. Short Term Outlook
If you try to budget only for the month ahead you’ll find yourself running into big expenses you aren’t prepared to handle. You need to be planning for summer camps, vacations, Christmas shopping and back to school expenses all year long.
3. No Plan to Support the Numbers
If you’ve decided that you are spending too much at the gas pump each month, have you arranged to carpool or bus to work? If you are trying to lower your water bill is the whole family on board with shorter showers?
4. No Motivation
It’s important to have a goal that gets you excited, it’s realizing that goal that gives you a reason to stay focused on your financial plan.
5. Life Happens
Budgets often flounder because life won’t conform to a spreadsheet. The dishwasher shuts down or the garage door won’t go up. The cat gets sick, or your son outgrows his bike. Life is messy and things happen.
So what’s the answer? We help our clients have a mind shift from a static budget to a flexible guilt free spending plan.
If you’d like to know more, contact a Money Coach through our Coaches page.
