3 Common Budgeting Mistakes
Budgeting - It’s not necessarily sexy or exciting but if done correctly, it will make all the difference with your money game. Unfortunately, most people start budgeting and make some common mistakes that ultimately lead to it not working for them. But it doesn't have to be that way.
Let’s review 3 budgeting mistakes and how to correct them.
#1. Creating a make believe budget
This is when you put some numbers down on a paper and act surprised when you have no chance of sticking to them! Essentially, you didn’t create your budget based on your ACTUAL spending and habits. You may think you know about how much you spend on certain things, but I often find that just isn't the case. Liiiike, usually we’re way off base. You’re playing dress up with your budget.
THE FIX: Look at your last months spending and start there. We’re looking for small tweaks that are going to move you in the right direction. Example: Going from $800 eating out to maybe $700 or $600.
#2. Your budget dies a slow death
You put the numbers down and then…that’s it. They die a slow death like when QR codes first came out. But you know what? You can ALSO have a comeback! Listen, when you put numbers down on a budget, you are committing to new habits and behaviors. WHAAAAT? That’s right. SO, this is why it’s essential to build your budget first based off of your current spending. And those small tweaks, they are there so we can start to create sustainable habits.
THE FIX: Make sure the budget you created isn’t creeping into the diet zone. IE - going too far too fast. Then, work on the habit of looking at your bank account every day and having a 15 min money date each week where you look at how much you’ve spent. This isn’t going to feel easy and you will want to avoid it. Why? Because it’s not your current habit, BUT…I know you can do it.
#3. Giving up too soon
Like I said above, budgeting is creating new habits. You are learning how to spend your money, time and energy differently. And guess what? You’ve had a long time to really perfect your current habits. SO, it’s not going to be perfect and that’s okay. You are learning your habits and behaviors and deciding the new ones you want to create. Habits aren’t formed over night!
THE FIX: Commit to trying your budget for 90 days. Each month look at what went well, and what was easy and what tweak can be made for the next month that will make it easy! Again, we’re not striving for perfection, but if you have the expectation that all of this is a data point and you’re simply learning your patterns, you’re setting yourself up for success.
You got this!!
xoxo - Bri
