4 Common Budgeting Mistakes

You might have seen people make budgeting mistakes before. Maybe you watch them make excuses or watched as their budgets fail. And this might have scared you after all you don’t want your budget to fail.

But you should have noticed something else as well. Because when people are having problems with their budget is usually one of four things.

Which means not only is there support and help if you do have some issues with your budget. But you could also learn what the 4 common problems are and take steps to avoid them.

So what are those problems? Well, here are 4 common ones. 

  • not having time for budgeting
  • not starting to budget
  • forgetting to enter transactions
  • using overspending as a reason to quit

Not having time for budgeting

As humans, we are good at making excuses. We’re so good at making excuse in the fact that sometimes we believe our own lies. And not having enough time is a good excuse.

Is your life busy? Mine is. Most people lead busy lives. And there are only 24 hours in a day so there is only so much you can do every day.

In that sense, the excuse of not having enough time seem real.

But let’s think for a second when was the last time your life wasn’t busy. Was that a week ago, a month ago over a year ago. You see the problem with this excuse is for most people life is busy. And it is going to stay busy.

I’m not saying having a busy life is wrong. It can be a good thing.

What I want you to do is to be honest with yourself. Is your life so busy right now you wouldn’t be able to do one more thing? Or is this the busyness of ordinary life. 

In fact, sometimes having a busy life means you can accomplish more. I tend to be better at managing my time when I’m busy. As being busy forces me to be more intentional about how I spend my time.

Not starting to budget

There another excuse that also sounds good. It called I’m not ready. My budget isn’t good enough. I need to learn more. Things aren’t perfect yet.

As with all the best lies, this has some element of truth to it.

You do need to have a functional budget. It is helpful to learn some things before jumping in and starting. The issue starts when you don’t budget.

Your budget just needs a bit more polishing before you can use it. This may sound good but it procrastinating.

To stop procrastinating all you have to do is start. If that sounds like an overwhelming task right now go read how to budget for beginners.  Don’t just read though the posts. Do the steps outlined in it. Even if you’re not ready.

Your budget doesn’t need to be perfect you just start.

Because over time, you will get better. Your budget will improve. You’ll learn more.

And in the end, it doesn’t matter whether your budget is perfect or not. What matters is if your budget is usable. And whether it fits your life.

So start today and work on improving things from there.

Forgetting to enter transactions

There are two common problems people run into when it comes to actually using their budgets. The first one and something everyone has done at some point are not entering transactions into the budget.

In fact, if you read some of my other budget posts you might have heard about this before. It is extremely important to keep your budget up to date.

If your budget isn’t up to date it isn’t accurate. If your budget isn’t accurate it means it useless. There no point in having a budget that won’t tell the truth.

Make your budget an honest one. And enter ALL your transaction into it.

It doesn’t take much time to keep it up to date. Every time you spend money to enter the budget right away. It will take about 30 seconds.

When you start putting off entering transaction. Well, then it morphs into a huge overwhelming task.

If you did that and now it weeks later don’t bother entering everything into your budget. Start a new budget and keep that on up to date. 

But please keep your budget up to date. Don’t let it become an issue. Enter ALL transaction as soon as you do them.

Using overspending as an excuse to quit

There one last problem people have with their budgets. Which I saved till last because people like to use this as an excuse to quit. It overspending.

Some people see overspending as a failure. And they quit because they overspent.

Overspending isn’t failure. It means you have to adjust your budget. You’re learning and knowing what works and doesn’t work is an important part of the journey.

If you overspent with money you have in your budget. Cover it and move on. It’s not a big deal.

If you overspend with money you don’t have like on your credit cards it more of an issue. But still, try to cover it as much as you can. Make a plan to pay this off. And try to avoid doing it again.

Overspending isn’t a failure. It’s part of the learning progress.

That with all the budgeting mistakes we talked about. They don’t have to be the end of your budget. You can fix things and move on. Things don’t have to be perfect to work. They just need to work.

Because you have a choice you can learn from these issues. Or you can let them defeat you. Which one do you choose?

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Common Budgeting Mistakes