![]() Family budgeting – just the thought of it makes most of us cringe. Many people make an honest attempt to budget, but become discouraged and give up before they are able to accomplish any significant financial gain. Many do attempt to curb spending and live within their means. Others may fall into bad habits, habitual spending patterns or impulse shopping and over-extend themselves, especially during the holiday seasons landing knee-deep in debt! The top three causes of budget failure come into play before you even begin to set up your budget. Awareness of these budget busters is your first line of defense in the ‘Battle of the Budget’. Budget Buster #1 - Negative Attitude It cannot be emphasized enough--a positive attitude about budgeting is essential to your success. If you think of budgeting in negative terms (such as a financial diet, financial handcuffs, restrictive, penny-pinching, a sacrifice, etc.), you are sure to fail, unless you are a martyr or a masochist who finds some strange reward in a punishing experience. For purposes of this article, I will assume that you are neither. A positive attitude means you think of a budget as a means to an end--a way to achieve your dreams and goals--and that postponing the instant gratification of spending all the money you earn is worth the rewards you will earn in the end. Budget Buster #2 - Lack of Motivation What is your motivation for budgeting? Are you trying to appease a nagging spouse? Following the terms of a debt repayment plan with a consumer credit counseling agency? Complying with an agreement made in bankruptcy court? These are not bad motivations, but they are external pressures and will probably not be easy to maintain over time. The best motivations are internally generated: do you honestly believe that budgeting can help you meet your goals? Budget Buster # 3 - Unrealistic Expectations What do you expect to gain from instituting and following a budget? Do you think that setting up a budget will reveal large caches of hidden cash or that the budget fairy will sprinkle fairy dust over your budget and magically transform your spending habits after a month or two of tracking expenses? The reality is that budgeting is an endurance event--those who stick with it, through thick and thin, will come out ahead financially. Do not expect miracles. What you WILL see if you stick with it is steady, measurable progress towards the goals that really matter to you. Starting a budget without having a positive attitude, internal motivation, and realistic expectations will set you up for failure. You can greatly increase your chances of success by ruling out the three biggest budget busters before you even begin. Budgeting is not about restricting spending nor living a cheapskate life. It is about insights, wisdom, informed decisions, action and sustained discipline when it comes to your household financials. A well thought out, planned and realistic budget will serve as a roadmap. It is a financial resource tool facilitating your financial dreams, goals and aspirations, making them become a reality. Budgeting will enable you to actually reach your financial targets and set goals successfully.
3 Comments
11/24/2012 04:28:47 pm
I've never been able to stick to a set budget, but I make it a point to live well within my means. It works for me, and I don't feel restricted at all.
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3/29/2015 06:31:40 pm
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Cynthia A NahinI live in Southwest Michigan and am excited at being able to create and share this blog with you. I hope you return often as I will provide you with many creative concepts that I have learned and put to practice successfully to achieve my end set goals! Believe me, you can do it, too! Blog Archives
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