The dreaded b-word.  Lately, you have probably heard this word come up whether at work, on social media, or your friends are jumping on this budgeting and paying off debt bandwagon.

So you think about joining. I mean, what could it hurt to have less debt and more money? It’s something we all want.

It’s something my husband and I longed for. So we decided to do it—the whole Budgeting thing. We decided to get serious and stop living in the shift of worldly ways. So we stopped listening to what society tells us about spending and questioned what it said instead.

Why do we need to finance everything?

Why aren’t we paying cash for a car? 

Why do we put everything on our credit cards?

In two years, we paid it all off. Five years later, we are on an aggressive path to paying off the mortgage in under 10 years.  ( You can read our debt-free story here.)

If you are new to budgeting, years may sound long and scary. But, the fact of the matter is years pass by quicker and quicker in life.

If it takes two years to pay off your debt, it’s worth it. Two years out of your lifespan is minuscule, correct?

So if you have started budgeting and can’t figure out WHY you are still spending so much money and not paying off your debt, you may be making one of the mistakes below.

11 Reasons You’re Failing at Your Budget

 

You start your budget halfway through the month

If you start each month just going along like usual and then a week and a half later realize you have spent more than you should, it’s because you didn’t start your budget at the beginning of the month.

Starting your budget at the beginning of the month allows you to know where your money will be spent- before you spend it. It gives you some room to breathe to see if anything is coming up that may need extra money and allows you to better plan for it.

 

You’re not telling Every Dollar Where to Go

Let’s say you have $4,000 coming in a month. Your budget is $3,500. You leave $500 out. You can’t do this. Every dollar needs to have a home. Otherwise, it can lead to emotional spending and allows you to have stuff that slows you down and buries you further into debt.

Have an extra $5 put in your Fun Spending or Savings.  Give every dollar a home.

Related:

• 6 Little Known Ways to Save Money That Will Change Your Life
• 10 Things to Do Now to Spend Less on Groceries

Track Every Little Thing

You forgot to track down how much gas you spent. Or the fact that your kids needed extra money this week at school. Even if it’s a smaller amount, you need to track it.

You need a better system if you are getting gas and saying you will write it down when you get home. There are a bunch of apps you can download to help you track expenses as you go.

Use your phone to write a note of what you just spent. Get in the habit of keeping every receipt. Have a spot in your home for the receipts to go. Get a system of how you are going to track your spending before you do it.

You Didn’t Build an Emergency Fund

Life happens. We all know that. So when you are budgeting, you need to have an emergency fund.  The ideal amount to start with is $1,000. Then you want to continue to grow that fund as you can.

An emergency fund is essential because if something in your car breaks, you aren’t forced or tempted to use your credit card to pay for it. In addition, when you have an emergency fund, the temptation to use money from somewhere else in your budget is eliminated.

 

You’re Not Paying Off Your Debt

Once you make a budget and stick with it as you pay off debt and income increases, your budget becomes second nature.

If you make a budget and follow it but are not working on paying your debt off, you may think your budget isn’t working. But, in reality, you just aren’t paying off the debt in a consistent manner.

Related:

• How Couponing Destroyed Our Debt
• 5 Ways to Set Your Goals Easily

You Forgot Christmas Comes Every Year

Holidays should not be budget breakers. Why? You can budget them in. We know Christmas comes every year. We know who we are buying for. You are in control of the budget. If you start planning, you can also get items for a much lower cost throughout the year instead of a few weeks before.

I recommend budgeting for all special occasions each month. If you set aside money for these each month when a holiday like Christmas arrives, you won’t be putting the last-minute deals on your credit card and having buyers remorse on Jan. 1st.

Read or Pin: 7 Unconventional Frugal Ways to Celebrate Christmas

 

You Didn’t Make a Meal Plan

Meal Planning is the key to success in cutting your grocery bill in half. I say it all the time. Meal planning and couponing allowed us to survive a 6-month spending freeze while we paid two mortgages, two utility bills and went through Christmas and both of our kid’s birthdays.

 Food is not cheap, and it’s one of those items we rationalize by saying we need it. But you can make delicious, affordable meals if you take the time to plan them.

Related:

• The Simple Kitchen Shortcut Every Busy Mom Wishes She Knew
• How to Meal Plan When You’re a Busy Mom
• Galentine’s Day Brunch Ideas to Celebrate Your Favorite Ladies
• Best Things to Make at Home to Save Money

You’re Not Shopping at Thrift Stores

If your budget isn’t working, you need to try shopping at thrift stores. I highly recommend if you live in a bigger city to try different stores frequently. I know some areas always seem to have better items than other ones.

Could you find one of those and check it often? It’s always worth walking into a thrift store to see, rather than thinking they won’t have anything. Many times items are marked 70% off the original price. I have found a bunch of items brand new as well.

Could you find one of those and check it often? It’s always worth walking into a thrift store to see, rather than thinking they won’t have anything. Many times items are marked 70% off the original price. I have found a bunch of items brand new as well.

Don’t blow the budget on brand new items. Seek Thrift Stores first.

You may want to read:

• 5 Ways to Save More at Thrift Stores

You Forgot To Have Fun

If you decide to attack your debt with a fierce attitude, you get so into it; you forgot to have fun. Our finances are something we don’t want to control, but it seems all our minds are filled with at times.

When you plan out your budget at the beginning of the month, make it a priority to save aside some cash to do something fun. Something that changes up your daily routine.

If you are married, a date night with your spouse is a perfect thing to do. If you plan for the month and don’t have any extra money to put in a fun spot, plan for it the next month.

Don’t lose hope.  It’s important to reward yourself for the hard work you’ve been doing. Please keep it simple and always within your means.

You Want Perfectionism

When you first start budgeting, you may notice some areas are over or under budget. That is okay. It takes time and adjusting to get a budget that works finally. So don’t give up because you are looking at the numbers, and everything isn’t working the way you imagined.

Make your budget accordingly and give every dollar a purpose. If you are under budget, decide where to put that money. If you are over budget, take a look at where you can cut back.

It’s important to budget as a couple not to expect everything to go perfectly just because you have a budget in place. We are all human and will make mistakes. Be open and honest and know that even planning a budget takes time before it just clicks.

Related:

• How to Let Perfectionism Go

You Didn’t Change Your Mindset

This is something that may resonate with those who are doing a budget as a couple. Sure your spouse is all for this budgeting thing and only allowing each of you to have $10 a week to spend on whatever your heart desires, and you just are not feeling it.

You are trying to support your spouse, but you don’t like feeling like you have no control.

It would help if you changed your mindset. You need to do the budget together. You need to communicate. If you go into the beginning of the month and have figured out your budget with your spouse, say it out loud together what a success it will be.

Write out your end goal and place it somewhere you both will pass by frequently in your home. Be reminded of the rewards that will come after following your budget.

Will you be debt-free?

Will you pay off your student loans?

Will you have the cash for a vacation?

 Change your mindset to; this will work instead of this can’t work.  Believe it or not, a budget doesn’t restrict you. It makes it easier.

Suppose you have children think of the benefits of discipline. When they don’t have boundaries, things get out of control. The same goes for your money. It needs boundaries.

I hope that helps you with your budget!

If you have any questions or comments with budget feel free to share below! 

 

Before you go, check out these:

• 70 Extreme Money Saving Tips for Frugal Living
• 10 Proven Investing Ideas to Start Building Generational Wealth Today
• Money Screams, Wealth Whispers
• Make February the Month You Save Big and Stress Less with This No-Spend Challenge
• How to Budget and Save for a Car (Without Losing Your Mind)