So, yesterday we talked about some of the common budgeting misconceptions.
Now, let’s take a look at some of the reasons that people say they just can’t follow a budget.
These are a little different, but they’re still complete myths.
By taking a look at each of these you’ll be able to see why they’re a mistake and what you could really be doing to improve your chances of success.
1. I have an irregular income.
Many people feel like it’s impossible to budget with an irregular income.
After all, how are you going to know what to plan for?
You might get one great week or month and then one really bad one.
So how are you going to budget out the money you’re going to put into each category if you’re not sure what you’re going to make that month?
The best thing you can do is plan for an average month and budget out the money you have. Pay attention to what areas you can adjust and which ones you don’t have any wiggle room on.
When you have a good month you’ll have some extra money that you can spread out amongst your budget items or apply directly toward your debt.
You’ll also have the ability to put some money away for those not so good months.
It’s going to be even more important for someone with this type of income to budget and to plan during the really good months so you can be prepared to pay your bills on the not so good months.
Create a separate category for planning ahead, but still put a budget together and make sure you stick to it as much as possible.
Trust me, it was difficult for me with my irregular income to make this work, but it is absolutely possible.
2. I can’t explain having a budget to my family and friends.
It can be difficult to explain to family and friends that you have a budget and that you aren’t able to do certain things because of it.
Some people struggle with telling anyone that they are now following a budget because of the stigma that goes along with it.
Many people think that you only need a budget if you’re in debt or if you don’t have enough money.
That means telling people you have a budget that you’re trying to follow is like telling them you don’t have any money.
The truth is, a budget is great for anyone, so it shouldn’t say anything about your debt or your money handling.
When it comes to explaining to anyone about your budget the best thing you can do is tell them that you’re trying to keep better track of your spending and that you have some big financial goals that you want to meet.
Explain to them that you will need to watch your spending a little more, but you can still do some of the fun things that you have always enjoyed. You just need to be more conscientious about it.
For me ... explaining that I was on a budget and that I only had so much money to spend on things was difficult. I had family who thought that certain things shouldn't be part of my 'personal budget' and that I should just pay for it out of the regular account.
For us, that wasn't an option, because we had budgeted things differently. Explaining that was hard. Or sometimes I just wouldn't explain at all. I'd just smile and let it go.
Because this is our budget and we have to make it happen the way that works for us.
3. I never have enough money at the end of the month.
If you don’t have money at the end of the month it’s important to find out why.
Maybe you need to look closer at what you’re spending on.
Take a day or a couple days to simply track what you’re spending and when.
Record everything that you purchase and then take a look at the end of the day.
Is that an average day for you? If it is then extrapolate it to cover every day of the month on average. Then add in all the bills that you always have to pay.
From there, look at how much money you bring in for an average month. From there, you can see what’s costing you money.
If your money coming in is covering your bills then you’re doing good. That’s when you need to look at the other money you spend and the other categories where you want to save.
Not having enough money at the end of the month may happen because you’re spending a little too much money in areas where you don’t necessarily need it.
You might need to cut back a little when it comes to that personal spending. That way, you can make sure you have a little more money to allocate to different categories in your budget.
You technically won’t have any money left at the end of the month, but you will have more areas of your budget funded.
It may also happen because you don't have enough money coming in, which is where you should take a look back at our article on cutting expenses (and check out the ones coming next month where we're going to start talking about ways to earn some extra money).
4. I’m Just Not That Type of Person
Trust me, I am very much ‘not that type of person.’
I tend to spend money without a second thought. And that … if I’m being honest, is what got us into this situation.
I’m not saying I’m the only one spending money in my household. My husband does too.
But I have definitely been the bigger contributor to the problem. And I’m also the one who’s more overwhelmingly optimistic about getting us out of it (and quickly).
So, if you think that you’re not the type of person who can stick to a budget? I am absolutely right there with you.
It is hard.
And it’s going to be hard.
But you can do it. If you’re dedicated and you’re determined and you have a good motivation to keep you going.
For us, we want to pay off our debt to have an amazing life for our little one (and maybe retire early, wouldn’t that be nice?).
So I’m fighting my natural tendency to spend, spend, spend. And you can do it too.
I’m not saying it’s going to be easy.
But I am saying that I’m going to be right there with you in the trenches.
What have been some of your misconceptions or thoughts about budgeting?
Comments