Are you constantly struggling with sticking to your budget? You’re not alone. Many of us start with good intentions, but can’t seem to stick to a budget throughout the month. Today, we’re going to break down the top reasons why you might struggle with sticking to a budget, and, more importantly, how to overcome them. Ready to transform your financial habits? Let’s dive in!

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TLDR: Five Key Reasons You Have Trouble Sticking To The Budget

1. Lack of Knowledge: Many people don’t know how to create or maintain a budget. It’s important to start small and use simple tools like a one-page budget template.
2. Inconsistent Income: For those with fluctuating earnings, budget based on your consistent low income and consider a bare bones budget.
3. Unexpected Expenses: Regularly occurring ‘unexpected’ expenses should be incorporated into your budget. Using savings buckets for different categories can help manage these costs.
4. Lifestyle Habits: Overspending and not tracking expenses can derail your budget. Setting up a specific spending budget for discretionary purchases can help control this.
5. Motivational Issues: Losing steam is common. Keeping your goals visible, making budgeting fun, and using systems to automate your finances can maintain your motivation.

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1. Lack of Knowledge: You’re not sure how to create or maintain a budget.

It totally makes sense that you don’t know how to budget. It’s not part of the general education that we get. The key here is to start simple. Try using our one-page budget template. It’s all about getting your financial picture out of your head and onto paper. Separate your bills from your spending money into different accounts. This simple act can bring clarity and control to your financial life.

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2. Inconsistent Income: Your paychecks fluctuate, making it hard to plan.

Inconsistent income can be a budgeting nightmare. The trick? Budget for your ‘consistent low’. Forget about averaging your income; focus on the least you can expect and plan from there. You can go back 6-12 months and figure out the lowest you can expect as far as income and create a bare bones budget using that amount. From there, you can create a priority list of what you fund the months you make more. For example, your consistent low might pay the bills, groceries and gas but then anything more than that can fund your personal spending, your savings buckets and more.

You might also consider setting up a holding account for leaner months, especially if your income fluctuates seasonally. We specifically recommend this for teachers, for example. If they only get paychecks ten months out of the year then we start to set aside enough from those ten paychecks so they will be able to pay themselves a paycheck on the off months. For example, if the teacher got paid $6,000 a month, her new paycheck would be $5,000 with that extra $1,000 going into a holding account, ready to pay her that $5,000 on the two months she wouldn’t normally get a paycheck. With paychecks every month, you’ll find it easier to stick to the budget.

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3. Unexpected Expenses: Life throws curveballs that derail your budget.

Life happens – home repairs, kids’ sports, even the holidays sneak up on us. But are they really unexpected? While that’s how it feels, we know that the more you budget the better you will start to be able to predict these things. The problem is that so many people think that if these things come up in their budget and they didn’t plan for it that they’re bad at budgeting or they didn’t do it right. That’s not correct! It’s just part of the process and it will get better, believe us!

Notice the kinds of things that pop up and think of how you might categorize them. Then you can start saving for them specifically. For example you might create savings buckets for different categories like medical expenses, home maintenance, and travel. Regularly contributing to these can cushion the blow when these ‘unexpected’ expenses hit.

You can also, especially in the beginning, create a “buffer” or “miscellaneous” line item in your budget. This $50 or $100 can help you plan for the unexpected!

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4. Lifestyle Habits: You struggle with overspending or not tracking expenses.

Ah, the silent budget killer! It’s easy to let spending creep up without realizing it, especially in this modern world of Facebook ads, online shopping and instant gratification. Many times, we swipe without knowing whether we have the money or not. We also know that a lot of the overspending comes from saying yes too much to the kiddos. You might also not realize how many “small” subscriptions and memberships you’ve signed up for and how it’s actually taking a lot of your monthly income. Finally, a problem we see with lifestyle habits and sticking to the budget is that you might see a lot of money on payday and start spending it without a plan!

So, what do you do?

Conduct a 90-day review of your spending. Highlight where your money is going and set a budget for discretionary expenses. This will help you to see what’s really happening and motivate you to make changes (even if it’s just taking Amazon off of your phone or removing all payment methods). You also want to make sure you have a specific personal spending budget line item. And here’s a pro tip: wait 24-48 hours before making a non-essential purchase. It’s amazing how often the urge passes!

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5. Motivation Issues: You start strong but lose steam along the way.

Budgeting is a marathon, not a sprint. It’s easy to lose motivation. The key is to make budgeting a regular part of your routine. You might think you can just set it up once and not have to look at it again. The reality is that you must set aside time each week to review your finances. Make it enjoyable – play music, have a snack, whatever makes it a pleasant experience. Also, don’t forget to reward yourself for hitting milestones – it really works!

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Detailed Strategies to Stick to Your Budget

• Start with a Simple Budget: Begin with a basic budget. Use tools like a one-page budget template to demystify the process.
• Handle Fluctuating Income: If your income varies, budget for your lowest consistent earnings. Use extra income for prioritized expenses or savings.
• Categorize Unexpected Expenses: Categorize and allocate funds for recurring ‘unexpected’ expenses like home repairs, medical costs, and even holiday spending.
• Control Impulse Spending: For discretionary spending, allocate a specific amount. Revisit the cart or wishlist after a day to avoid impulsive buys.
• Visualize Your Goals: Keep your financial goals in sight. Use vision boards or set reminders to keep your objectives top of mind.
• Make It Fun: Turn budgeting into a pleasurable activity. Pair it with your favorite music or treat it as a rewarding routine.
• Use Financial Automation: Automate transfers and payments to streamline your budget management.
• Reward Yourself: Create a reward system for achieving budgeting milestones. This can be as simple as a favorite coffee treat for each debt paid off.
• Seek Professional Guidance: Consider scheduling a free 20-minute call with a financial coach to get personalized advice and accountability.

Budgeting is more than numbers; it’s about setting yourself up for long-term success and peace of mind. Remember, every step, no matter how small, is progress.

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Homework:

1. Download a Simple Budget Template: Start by downloading our one-page budget template from mybalance.com/budget-template.
2. Automate Your Savings: Set up automatic transfers to different ‘savings buckets’ to prepare for planned and unplanned expenses.
3. Schedule Weekly Budget Reviews: Dedicate an hour each week to review and adjust your budget.
4. Create a Vision Board: Visualize your financial goals with a vision board and place it where you’ll see it daily.
5. Book a Free Coaching Call: For personalized guidance, schedule a free call at myidealbalance.com/free-call.

We hope this episode empowers you to take control of your finances with confidence. Here’s to a brighter, budget-savvy future!”