Getting Out of Debt_3 Why the Budget Does Not Work Sometimes
Getting out of debt_3 with the help of the budget is a good start. Budget is not a dirty word; in fact, it is essential to one’s financial health. Don’t think of it as something you have to do because you don’t have enough money to go around. Every body needs a budget; even millionaires have to have it or they will soon be out of their millions. How many times have you heard of a lotto winner who after a year lost the million he won?
If we are allergic to the word budget, let’s give it another name, say a financial plan, for that is what it is. It is just to allow us to decide the best way to spend our money so we can save for emergencies, vacation, retirement and whatever else you have in mind, especially getting out of debt_3.
It will help us sleep better at night knowing how much money we have and where it is going. But the word budget sometimes means restrictions and this scares the hell out of us. We know how painful it is but there are ways to make it less so. But sometimes, a budget does not work. Let us look at the reasons and see how we can get around them.
Budgets are a Drudgery Without Small Treats to Look Forward To
A budget fails because it does not allow for treats. So, don’t eliminate them altogether. Have a little treat from time to time and put that in the budget. Mind you, if your treats are a $600 pair of shoes here and a thousand dollar vacation there, then that’s a different story for getting out of debt_3.
Those certainly are budget breakers. But we are talking about little treats like a specialty coffee or a movie date. Having small rewards like these can keep you from throwing away the budget spreadsheet into the garbage. It can help us keep sticking to it so we can be getting out of debt_3.
An Impractical Budget Could Soon Make One Give Up
A budget could be impractical. You eliminate the cable TV and the land phone and suddenly you have $100 a month in savings. Now your budget is close to balancing. The trouble is you miss the news and talking to your son half a continent away on the phone. This makes the budget unrealistic. But wait, you can get skype and phone for free and stop paying cable bills.
The Form the Budget Comes In Does not Work
A budget could fail because the form that it comes in does not work for you. It is true that some forms do not work like a budget spreadsheet in a software that does not easily allow for some changes. Some will divide the expenses into two categories with the essential items like food and shelter and the non-essential expenses. Then they set a limit on each item.
Others use jars and envelopes. What I do for my own budget is create a spreadsheet where I can put my own items down. In your case, you will have to find the form that will suit you the best. The important thing anyway is to want to change the spending habits and be patient until you find the way that works for you.
Budgets That Do Not Give Allowance to Special Events Are Bound To Fail
A budget sometimes does not conform with differences. Two birthdays a month in the family could mean an irregularity that a budget may not be able to meet. We can still do something about this by considering looking at the budget as a year long affair so we can be getting out of debt_3.
Getting an overall picture of the yearly expenses will be able to make allowances for such events like Christmas by keeping a small amount each month for this celebration. Only then will one be able to spread the cost of a big item. Knowing the overall expenditure for the year will make one better prepared for any eventuality. Like Rome, a budget is not built in a day; it is an on-going process. It will change to fit your needs.
Budgets That Are Not Up to Date Will Set One Up to Fail
Some budgets fail because they are not up to date. We are not static, we are evolving and financial situations change. So how do we go around this make sure to add that extra expense in the budget so we can stick to it and be close to getting out of debt_3..
Adding that extra expense in the budget makes it more accurate. And the more accurate and up to date the budget is, the better is the chance to stick to it. We have to set aside time to work on the budget for as we develop so does the budget. We have to keep updating it to reflect the changes in our circumstances. This is a pain sometimes but the end is sweet.
Unrealistic Budgets Will Be Impossible to Follow
It is easy to say to eliminate from the budget what you think is not essential. Say you eliminate entertainment altogether. Theoretically, this is great for you find yourselves saving some money to cover the shortfall you have. But what does it do to the family? Is everybody finding this solution up to par with what they think is an essential matter?
So how do we go around this? Eliminating an item on the budget altogether is not the way to do it. While it is true that we can eliminate some parts in the area of entertainment, one cannot rule out the item as a whole. So include parts of it in your budget and just cut back on some items in the area of entertainment.
There you now have the reasons why sticking to a budget sometimes does not work. Find out the reasons that pertain to you so you can try to find ways to face them and cope with any situation they throw at you. So long as you keep more money coming in than what is going out then you are able to stay within a budget and be getting out of debt_3.