A recent survey by GOBankingRates cited creating and sticking to a budget as one of the top financial New Year’s resolutions for 2017. Yet as I talk to people, many have abandoned their budget. When I recently asked a friend why she ditched her budget, she told me that she just was not good at budgeting. I told her that maybe it was not that she was bad at budgeting, but she was using the wrong methods to budget. Intrigued, she asked for more details and I went into the top 7 reasons why I feel budgets fail:
1. You only use the budget to write down your bills, not your overall monthly spending. I find that most budgets fail, not because of the bills, but because of the other unaccounted for expenses. A true budget accounts for ALL of your spending in the month.