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Three Ways to Bust Your Budget
By Molly's Brother | March 19, 2008
When I talk to people about budgeting, the #1 complaint I hear is, “I don’t do budgets, because I can never stick to them.” Budget-busting seems to be pandemic behavior among these individuals. I am not surprised, however. Budget-busting used to be a common experience in my life, too.
1. Not Having A Budget — It is vitally important that you sit down and work out your budget. I remember Dave Ramsey explaining in perfect terms what a budget does: “It is not your money telling you what you can not do. It is you telling your money what to do for you.” If we think of budgets as restrictive and oppressive, chances are we will not work to create one (nor will we work to maintain one). You need to figure out where your money is going every month.
2. Not Maintaining A Budget — In addition to creating a budget, it is vitally important that you maintain your budget. Working within the parameters that you have established will help you stay focused on your quest to financial clarity. Maintaining a budget does not mean that you can not roll with some level of financial flexibility. Some months you may spend less on entertainment or grocery needs. You can take that money and pay down your debt or increase your savings. But make sure that you maintain your budget–and revisit it from time to time–to serve your financial goals.
3. Abandoning the Budget because of Setbacks — This was the most difficult concept for me. When I abandoned my budget–or any goal, for that matter–it is because I give in to the negative self-talk that got me in the situation in the first place. A speeding ticket that I could not afford used to bust my budget. The self-talk that ensued always sounded like this, “See, I will never get ahead. I will always be in debt.” The reality is quite different. As you work with your budget, you will find ways to make sure to guard against any setbacks. When those setbacks do arrive, take a deep breath, remember that this one setback should not get in the way of the rest of your life, and move through it.
Inaction causes us to continue to float through our financial lives without much purpose or without any clear direction. By creating, maintaining, and following-through with your budget you will find success in reaching your financial goals.
Topics: Your Budget |