The Reasons why Budgets fail
The reasons as to why budgets fail can be of many varieties but I have narrowed down the top three. They are :
I have monitored my spending and my income, which fluctuates a lot, for the last couple of months. This was in order to get a full picture on where my money goes, and what type of expenses that I incur, whether they are mostly fixed, or variable. Once, I had a picture of what it looks like, I went ahead and set up a budget; which I thought would be reasonable and that I could easily follow.
Now, a month in and I can safely say, it has miserably failed. Actually, it has SPECTACULARLY failed !! The reason behind it, was ME. I just wasn't honest with myself. I lied to myself and tried to bargain. I thought, if I have gone ahead and spent something I shouldn't have, then I can make it up by not spending what was allowed on the budget and thus make up for the difference.
The only issue with such a tactic is that I had setup the budget in such a way that only what I considered essentials would stay on, thus can't make up anything if I can't cut it.
After having failed so badly, I did a little bit of introspection and realized that I was trying to quit cold turkey. It may be possible for some, but most certainly not for me. I went back to the drawing board and devised a new philosophy. It would be to create a new budget, allow for that "Ice Cap", albeit in a controlled manner.
However, if on a good week, I am able to reign myself in, the amount saved will be sent off to a savings account, it will not rollover. The goal here is not to have that provision of the little "wants" to stay forever, rather to try and progressively get rid of them.
Budgets are lifestyle changes. They can't be used for a period of time, they need to be created and tailored to the life that one wants to lead from that moment on. Now, that I have understood that, I hope that my new budget will not fail, and if it does that it will be for different reasons rather than the fact that I lied to myself.
I am curious to know how others have survived their budgets? Has anybody ever gotten the same issue as myself?