Why Is My Budget NOT Working?

Are you having trouble saving money? Can’t figure out why your budget is not working? Sticking to a budget can be difficult and there are many reasons why you savings account is not increasing.

Having trouble saving money? Can't figure out why your budget is not working? Read these 7 tips to help get you back on track. Definitely #2!!

You made a monthly budget to manage your money, but it’s just not working. What are you doing wrong? Take a look at this list of 7 reasons why your budget is NOT working and how to make some changes that will help make your budget work for you.


Why is my budget not working??

1. You live beyond your means. It is important to live within your means. Do not try to keep up with the Joneses, instead focus on creating a stable financial future. It is difficult not buying items that you want every day, but it is worth it in the long-run.

2. You do not account for “the little extras”. Sometimes we just don’t realize that little things add up. Keep track of everything you spend; that latte at Starbucks, those great sunglasses you just had to have. Once you see it in writing, you will realize just how much you are spending on these little things. You will be surprised at how much money you can save by just cutting the little things out. Think of saving an extra $3 per day. That would turn into more than $1,000 in a year!

3.Your budget is not working because you may be underestimating your expenses. Some bills, like electricity and water will vary month to month. Make sure to estimate higher for these bills to account for changes each month. It is better to estimate over and have $20 left after you pay a bill then to estimate under and be $20 short on that bill. Many companies will allow you to go on a budget plan each month so that you bill will stay consistent throughout the year. This is a wonderful way to manage your bills because you will not exactly how much to budget every single month.

4. You just don’t stick to the budget. Are you cheating? If you are, then you need to get firm with yourself and learn to say no to the things that you want but really don’t need. After a few months you will get used to your budget and know how much and should and should not spend each month on certain categories. It is difficult when you first start out because you may not know how much to budget, but if you stay consistent you can be successful.

Having trouble saving money? Can't figure out why your budget is not working? Read these 7 tips to help get you back on track. Definitely #2!!

5.Your budget is not working because you feel that you do not make enough money each month. If you are doing everything right, keeping track of your income and expenses and your budget is still not working, you may want to earn extra more income. Consider a part time job, or other ways to gain a little extra spending money so that your budget is not as tight each month.

6. You are not prepared for emergencies. If you get a flat tire and you need to take the money to fix it out of your rent money, you are always going to find yourself short somewhere. Start putting money aside for an emergency fund so that when you have an unexpected expense you aren not blowing your budget to pay for it.

7. You are using credit and creating more expenses every month. Every time you charge something you increase your monthly bills. If you constantly use credit, you will always have an extra bill to pay each month and you will be overpaying for what you bought. Using cash can not only help to prevent you from making unnecessary purchases, but it helps you put your budget into perspective. If you only have $100 in cash to spend each week then you will make your money go further.

Following a budget can be difficult at times, but if you are disciplined and honest with yourself you can make it work for you. I hope that these 7 reasons why your budget is not working will help you figure out where you are going wrong and how to get back on track.


This Post Has 11 Comments

  1. These ideas are all great, but what happens when you are in bankruptcy. They take all of your “excess” income leaving only $3728 for a family of 4. When you r rent is $1500 and you live in one of the most expensive cities in your province how do you save, not to mention pay the bankruptcy.

  2. Great post! I’ve recently started to edit my spending and assess how to budget my income better. Your blog has inspired me to step it up from small changes to a bigger commitment.

  3. If you use cash when planning your budget, and only cash it will be very hard to overspend, as the money will not be there for planned expenditures unless you take out of your cash envelopes set aside each pay period with the amounts already allocated. I have been doing this for ten years and at first it was hard, as I was not use to this new habit! Now my husband and I love it! We actually plan a 5 week month every month so that on four week months for grocery and gas we have extra so we can stock up on things of necessity and not have to take out of our weekly grocery budget! Do not use your ATM for any expenditures. IF there is no extra cash in the bank you will not spend what you have not allocated.

  4. Truth…

    We need to take care of the budget no matter how small. For as is increasing, we can disrupt and this will affect us totally.

    Thank you for the tips.

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