12 Jul WHY BUDGETS FAIL?
When we talk about budgeting, at the beginning people can think its something easy to achieve and that they can make it in a few days, that’s why when they realize that it will take time and effort to see the results and it’s not as fast as they thought, they end up quitting.
That is the key, constancy, patience, effort and DISCIPLINE, otherwise you will fail again over and over and would never see good results.
Having a budget is more than anything a need, because you can’t just live day by day with what you have on your pocket, or being always in the limit just with the basic, because emergencies happen all the time and you have to be prepared, and not just because of that, you need to have a budget for anything you want, it can be traveling to some place you have always dreamed of, buy a house or a car or anything you wish at certain time.
But now, there is the question that most of the people ask their selves: why budgets fail? Why its so har to achieve it?
There are two things that make our budgets fail, the first one is not having a record of past spending, because if you don’t have a measure of how much do you usually spend, you wont be able to manage it, so this is the starting point.
If for example, you don’t know how much do you spend in food during a week, you won’t have how to compare it and decrease it, that’s why the best thing you can do is making a list of your weekly or monthly spends, whichever is best for you, and starting from there, cut unnecessary things. If you calculate things, it would be much easier for you to save, I’m not saying you have to count millimeter to millimeter every single thing you buy, but calculate your basic expenses to have an idea of how much do you need and how much you can save.
Nowadays, there are Apps that help you calculate your expenses and if you don’t want to use any special App, you can just check your bank account in your cellphone and it will tell you exactly how much are you spending and in which things are you spending your money, but Budgeting Apps are a really great tool because they can categorize transactions from every bank account and credit card you have, that way it will be easier for you, because I know it can be hard to remember every single thing you have bought and it could be annoying to write everything in a paper.
We can lie sometimes to ourselves when we talk about money, we can pass over some ¨minimum expenses¨, thinking that they won’t make any difference in our economy, but the truth is that if you count every ¨minimum expense¨ you have in a day or a week, at the end you will find out that it’s a considerable amount of money that you could have saved or wasted in something really necessary.
The second thing that make our budgets fail is not having defined our goals, because I think everyone wants to have enough money to pay all their debts and buy the things they want, but have you ever asked to yourself what is what you really want? And I’m not talking about general things but specific ones, for example go to THAT place you have always dreamed of, or buy THAT house you have always wanted, once you set those things you start working for them, you will know how much money would you need for that and not just saving what is left after you waste money in unnecessary things, if you have a clear goal you start doing precise things that approach you to achieve it.
Its great having many goals, but I recommend doing it step by step, which means focus in one goal at time, work hard for it and once you achieve it, you are going to be ready to your next objective.
In conclusion, to make a budget and not die trying, you have know your past expenses record to have a starting point, likewise, you have to set an attainable goal once at time, it has to be a specific one, so you can know since the very beginning how much money would you need and in how long more or less you are going to collect it, and also put a deadline to finish it, because it will make you feel more compromised, and you will think twice before spending money in unnecessary things.
SO, LET´S GET STARTED!!!