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If you’ve ever tried to improve your finances, the first place you’ve probably turned your attention to was your budget. Whether you love it or hate it, there are some benefits to knowing where your money goes on a monthly basis. Budgeting can help you figure out if there are areas where you’re spending on things you don’t really care about. And, it can even help you avoid overdrafts if you’re always staying updated on how much money is leaving your checking account.
But it’s also common to feel discouraged or even annoyed by your budget when it seems that it’s not necessarily helping you save or shave spending. Instead of immediately throwing in the towel, consider these four reasons why your budget hasn’t been as successful as you thought it’d be.
1. Your budget feels too restrictive
Financial experts typically compare the feeling of unsuccessfully budgeting to that of dieting — at first, you feel dedicated (and even excited) to sticking with your plan but you quickly start to feel like your diet leaves you without a lot of your favorite things. Over time, this can feel unsatisfying and even discouraging until you ultimately decide to quit.
This can also hold true when you’re following a budget that’s too restrictive. Maybe you’re trying to force yourself to stop spending money on things you love, like coffee, candles or dinners with friends; it can become extra hard to adhere to a spending plan like this when you have to say no to dinner invitations with friends or forego something you considered a highlight of your morning routine.
As a result, a budget that restricts you from spending on things you love is unsustainable over the long run and you may be unlikely to stick with it. Try prioritizing one or two of your favorite things to include in your budget so you feel like you have a more balanced spending plan while also creating some savings for yourself.
2. Your income varies month to month
With a traditional budget, you’ll usually have to set limits on how much you can spend for all of your expenses. That can be tough for the average person whose expenses vary on a monthly basis, depending on lifestyle factors like out-of-pocket doctor’s appointments, travel, birthday gifts and more. But this becomes even harder to stay on top of when your monthly income isn’t fixed.
If you own a …….
Source: https://www.cnbc.com/select/reasons-your-budget-may-not-be-working/
